Hero MotoCorp (HMCL), the leading two-wheeler manufacturer in India, will be announcing its second quarter financial results today, Oct. 16, 2014.

Angel Broking expects the topline would be robust double-digit growth of 21.7% yoy to Rs 69.68 billion. The growth would be largely volume driven (20% yoy volumes growth) while the realisation is expected to grow marginally by 1.5%. 'We expect operating margins to dip 70 bp yoy to 13.8% on back of increased competitive intensity leading to pricing pressures. However, despite the operating pressures, the net profit is expected to grow a healthy 48% yoy to Rs 7.11 billion due to expiry of the royalty payment to Honda Motorcycles.'

''Key factors to watch out management strategy on ramping exports; update on margin improvement programme ''Project Leap''. We maintain our Accumulate rating on the stock with a target price of Rs 2,475,'' it added.

Shares of the company gained Rs 31.55, or 1.1%, to trade at Rs 2,888.25. The total volume of shares traded was 13,521 at the BSE (9.59 a.m., Thursday).