Hero Motors shares: 3 back-to-back upper circuits! Stock jumps 46% from IPO issue price - Should you buy?
A three-session rally has lifted Hero Motors shares 46% above their IPO price, even as the stock remains down about 12% over the past month. Quarterly profit climbed 115.6% and revenue grew 24.9%, with margins improving.
Hero Motors share price: Hero Motors shares have surged 46% from their IPO issue price of ₹84, with the stock hitting its third consecutive 5% upper circuit on October 29. The sharp rally has put the recently listed stock back on investors’ radar, supported by strong September-quarter earnings and improving operating performance. Hero Motors shares were locked in a 5% upper circuit at ₹122.40 in intraday trade on Thursday, October 29, marking the third consecutive session in which the stock hit its upper price band.
The stock opened at ₹120 apiece on the BSE before climbing to its upper circuit level.The shares have gained nearly 16% over the past three trading sessions and are now up approximately 46% from their IPO issue price of ₹84. However, the stock's recent momentum comes against a mixed short-term performance: it has declined around 12% over the past month while gaining approximately 5% in a week.Hero Motors made its stock market debut on September 23, 2026, listing at a discount to its IPO price.
The shares opened at ₹82.10 on the BSE, down 2.26% from the issue price of ₹84, before recovering sharply to close at ₹98.51, representing a gain of 17.27% over the IPO price.Hero Motors Q2 results: Profit more than doubles, revenue rises 25%The company's strong quarterly performance has provided a fundamental trigger for investor interest. On October 13, Hero Motors reported a 115.6% year-on-year increase in net profit to ₹10.2 crore for the quarter ended September 2026, compared with ₹4.73 crore in the corresponding quarter of the previous year.Revenue from operations rose 24.9% year-on-year to ₹319.3 crore from ₹255.7 crore.
Operating performance improved even more sharply, with earnings before interest, tax, depreciation and amortisation (EBITDA) climbing 92% to ₹35.9 crore from ₹18.7 crore a year earlier.The EBITDA margin expanded to 11.3% from 7.3%, marking an improvement of approximately 400 basis points. The combination of revenue growth, stronger profitability and margin expansion indicates an improvement in the company's operating performance.Alongside its quarterly results, Hero Motors announced plans to acquire an additional 39% stake in its UK-based subsidiary, Hewland Engineering Ltd (HEL), for approximately £0.60 million in cash.The proposed transaction involves the purchase of 8,039 equity shares from existing shareholders William Hewland and Siobhan Hewland.
Following the acquisition, Hero Motors' stake in the subsidiary will increase from 51% to 90%. The transaction is expected to be completed within approximately six months and does not require government or regulatory approvals.Hero Motors designs, develops and manufactures powertrain solutions for automotive original equipment manufacturers (OEMs). Its product portfolio caters to two-wheelers, electric bicycles, off-road vehicles, electric and hybrid cars, and heavy-duty vehicles.The company operates across India, Europe, the US and ASEAN markets.
Its customers include BMW, Ducati, Enviolo, Formula Motorsport, Hummingbird EV and HWA, giving it exposure to multiple automotive segments and international markets.Hero Motors shares: Should you buy after the sharp rally?After the sharp rally, investors will be watching whether Hero Motors can sustain its momentum and build on its recent gains.According to Mayank Jain, Market Analyst, PhonePe Invest, from a technical perspective on the daily chart, the newly listed entity has limited historical price data, leaving only the fast-moving 20-day Simple Moving Average currently plotted at ₹143.26.
The recent session recovery off the near ₹105 low reflects short-term stabilization, bringing price action closer to testing overhead dynamic resistance, he noted. "Immediate overhead resistance is positioned at the 20-day moving average near ₹143.26, followed by a secondary resistance band around the previous swing peak between ₹165.00 - ₹175.00 zone . On the downside, primary structural support rests at the recent swing low between ₹105.00 and ₹110.00, with the ₹84.00 IPO issue price serving as the long-term baseline floor.
From a market participant perspective, existing holders typically monitor whether price action can establish a sustainable base above recent lows, while prospective observers watch for a confirmed close above the 20-day moving average or consolidation patterns to gauge post-listing price stabilization," suggested the expert.
