Hyundai Motor India shares gain 2% as Nuvama initiates coverage, sees 26 launches by FY30

Over the past six months, shares of Hyundai Motor India have gained 20 percent on the bourses.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Shares of Hyundai Motor India Ltd gained in trade after domestic brokerage Nuvama Institutional Equities initiated coverage on the auto firm on Friday, July 11, with a bullish 'buy' rating.

Hyundai Motor India is gunning for 26 launches by FY30, including seven–eight new models. Over the next 18 months, Nuvama Institutional Equities expects a new compact SUV, a micro E-SUV and multiple refreshes, ratcheting up the firm's domestic market share by one percentage point to 15 percent by FY28.

Over the past ten years, the auto firm's success rate, which is the ability to recover product development cost in four years, has been an industry-best 100 percent. Further, HMI is also poised to benefit from a better share of SUVs and premiumisation given increasing adoption of sunroofs, ADAS and automatics.

Further, the parent company Hyundai Motor Company is the third-largest global mass-market PV player with revenue of $129 billion in CY24, presence in 200-plus countries and 40-plus models.

The firm's global R&D spends at 2.5 percent, that is around $2.9 billion per year, help it offer latest automotive technology. This in turn helps Hyundai Motor India fast-track portfolio expansion and fill white spaces, not to mention access to a global distribution network for sale of HMI models.

Nuvama Institutional Equities is building in a domestic volume/revenue CAGR of 6 percent/9 percent for FY25–28. According to the brokerage's analysis, this leads to a 12-month target price of Rs 2,600 per share, which implies a 30x Sep-27E core PE, along with net cash of Rs 117 per share.

"We argue the target PE is justified given global parent support, high UV exposure, a strong pipeline and a high Return on Invested Capital," added Nuvama.

At 10.55 a.m., shares of the firm were quoting Rs 2,120, higher by 1.2 percent on the NSE.

Follow our live blog to catch all the market updates

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.