Big news for auto investors! Motilal Oswal has initiated coverage on Hyundai Motors India (HMI) with a ‘BUY’ rating and a target price of INR 1,960. The recommendation comes as the market is buoyant and investors are keen on fundamentally strong stocks.
The market has seen 7 consecutive up sessions. On Monday, the Sensex rose by 600 points and the Nifty touched 23,800. Auto stocks are seeing renewed interest as they are resilient and have growth potential.
Why Motilal Oswal is Bullish on Hyundai Motors?
Motilal Oswal’s report is based on extensive discussions with HMI’s management. Despite the current subdued demand environment with PV growth expected to be 1-4% in FY26, Hyundai Motors India is well placed to leverage its strong SUV portfolio. SUV is the primary growth driver and HMI will benefit significantly from India’s premiumization story.
Key Points of the Report:
- Target Price: INR 1,960, up 15% from current levels.
- Current Price: The stock closed at INR 1,759 per share yesterday and has seen an intra-day high of INR 1,765.70.
- Performance: 14% below all-time high; up 10% in last 7 days.
- Growth Drivers:
- Strong response to the new EV variant of Creta which is expected to contribute 10% to overall Creta sales.
- Aggressive plans for localization to ensure long-term, profitable and sustainable EV business models.
- New model launches are to be synced with the commencement of production at the new Pune plant in Q4 CY25. Motilal Oswal’s target price of INR 1,960 is at 26x December 2026E earnings.
Hyundai Motors India Post-IPO Performance
Hyundai Motors India launched its IPO on 15 October 2024, it is the biggest IPO listed on Indian exchanges to date, and the issue size was INR 27,858.8 crore. HMI IPO was subscribed 2.37X and landed in negative territory with a loss of 7.16%.
However, the post-IPO performance of HMI is a rollercoaster ride, the stock touched its all-time low of INR 1,580.15 per share on 18 March 2025, reflecting a loss of 19.38%. The stock is range-bound between INR 1,580 to INR 1,916 level and never crossed its allotment upper price band of INR 1960 per share.
Conclusion
The call is justified as Hyundai has a strong brand, diversified SUV portfolio and has entered the EV space on time. For investors looking to play the premiumization theme and electric vehicle adoption in India, Hyundai Motors India is a good play. With a clear strategy and strong fundamentals, HMI can be a long-term wealth creator in the Indian auto space.
Disclaimer: The article is based on brokerage reports and market analysis. Please consult your financial advisor before investing.
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