Buy Hyundai Motor; target of Rs 2235: Motilal Oswal

Motilal Oswal's research report on Hyundai Motor

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.

Outlook

We 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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