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Citi’s price target implies a potential upside of 25% from Hyundai Motor India’s closing price on Monday, January 6.
The brokerage has based its positive stance on Hyundai Motor India on its strong parentage, a diverse model lineup with a greater proportion of SUVs, its focus on premiumisation, a wide sales and service network, strong brand presence and a potential upside from exports.
Hyundai’s capacity expansion at its new plant should also provide a boost to its volumes from the second half of financial year 2026, according to Citi.
Production at Hyundai’s upcoming plant in Talegaon is likely to begin in 2026.
The company’s Managing Director and CEO Unsoo Kim had earlier mentioned that the company will be investing ₹26,000 crore in to its Chennai plant and ₹6,000 crore to the Pune plant to increase its annual capacity to 1.1 million units by 2028 from 8,24,000 units earlier.
Increasing competition, excessive related party transactions, and regulatory risks are some of the key risks for Hyundai Motor India going forward, Citi wrote in its note.
Out of the 15 analysts who have coverage on the company, 12 of them have a “buy” rating on the stock, while the other three have a “sell” rating.
Barring InCred Research and Emkay, all of the other analysts who have coverage on the stock have a price target in excess of ₹2,000, which is above Hyundai Motor India’s IPO price of ₹1,960.
Shares of Hyundai Motor India are trading 0.6% higher on Tuesday at ₹1,811. The stock had made a post-listing high of ₹1,970 but has corrected since.
Hyundai Motor India is currently India’s largest IPO till date, with a size of over ₹27,000 crore. The stock had just managed to receive full subscription on the final day, led by institutional investors. The retail portion of the IPO remained undersubscribed.
