Buy Hyundai Motor; target of Rs 2567: Motilal Oswal

Motilal Oswal is bullish on Hyundai Motor recommended buy rating on the stock with a target price of Rs 2567 in its research report dated February 27, 2026.

Broker Research

March 02, 2026 / 11:00 IST

Buy

Motilal Oswal's research report on Hyundai Motor

We interacted with Hyundai's (HMI) management to understand the demand outlook for HMIL and the industry. Management indicated that retail demand continues to remain healthy for both small cars and SUVs, although compact/micro-SUVs are currently outperforming cars. For HMIL, its recently launched Venue is seeing strong demand, with an order book of 83k units and a waiting period of about 10-14 weeks. Further, HMIL has done a few interventions, such as: 1) Creta brand campaign in the Cricket World Cup to sustain its market presence in a rising competitive scenario; 2) the introduction of low-priced “Era” variant for i-20; and 3) entry into commercial mobility, which has helped improve Aura volumes. HMIL has indicated that its new launch cycle has now begun with the launch of the new Venue and it plans to launch 26 models by 2030. Management continues to be upbeat about exports and has set a target of increasing the export mix to 30% by 2030 from 25% currently. Margins may remain under pressure in the near term given the impact of start-up costs of the new Pune plant; however, an improving mix and localization, among other tailwinds, should drive up margins in the long run.

Outlook

We expect HMIL to post a 12% earnings CAGR over FY25-28E. Maintain BUY with a TP of INR2,567, valued at 27x Dec’27E EPS.

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