Buy Hyundai Motor; target of Rs 2408: Motilal Oswal

Motilal Oswal is bullish on Hyundai Motor has recommended buy rating on the stock with a target price of Rs 2408 in its research report dated July 30, 2025.

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July 31, 2025 / 14:40 IST

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26 Aug, 2025 12:21

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Motilal Oswal's research report on Hyundai Motor

Hyundai Motor India (HMI)’s 1Q earnings at INR13.7b were ahead of our estimate of INR12.1b due to better-than-expected margins. The margins remained healthy in 1Q despite weak demand and higher discounts, led by improved mix in both domestic and export markets and lower input costs. HMI targets to launch 26 products (including variants) by FY30, of which eight would be launched over FY26-27E. Considering its launch pipeline, we now factor in an 8% volume CAGR over FY25-27E, which is largely back-ended. We also factor in the startup costs of the new Pune plant to impact earnings in the
near term and normalize in FY27E. Overall, we expect HMI to deliver 10% earnings CAGR over FY25-27E. We believe HMI remains well-positioned to benefit from the premiumization trend in India, given its mix in favor of SUVs. Reiterate BUY with a TP of INR2,408, valued at 27x Jun’27E.

Outlook

We expect HMI to deliver 10% earnings CAGR over FY25-27E. We believe HMI remains well-positioned to benefit from the premiumization trend in India, given its mix in favor of SUVs. Reiterate BUY with a TP of INR2,408, valued at 27x Jun’27E.

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