Hyundai Motor (HMI)’s 2QFY25 performance was hit by ~9% YoY volume decline and higher discounts, leading to a 30bp YoY/70bp QoQ EBITDA margin contraction to 12.8%. While the PV industry’s demand remains moderate, we expect HMI to post steady growth given its favorable SUV mix and strong export opportunities going forward.
OutlookWe broadly retain our FY25E/26E EPS. We assign a slightly higher multiple to HMI at 27x Sep’26E EPS, compared to MSIL’s 26x, given its strong parent support for new technology, superior financial metrics, a relatively premium brand perception, and better alignment with industry trends. We reiterate our BUY rating with a revised TP of INR2,235.
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