The price target from Morgan Stanley implies a potential upside of over 28% from Tuesday’s closing levels.
In its report, the foreign brokerage highlighted that growth in the financial year 2026 and 2027 is expected to be driven by new capacity expansions, market revival, and strategic product initiatives. Supported by its parent company, Hyundai India is also strongly positioned in the SUV and EV segments.
Morgan Stanley noted that with a FY27 price-to-earnings (P/E) ratio of 19x, compared to the India OEM (excluding Tata) average of 22x, the company’s valuation is attractive.
Additionally, JPMorgan has also initiated coverage on Hyundai India with an ‘Overweight’ rating and a price target of ₹2,200 per share. JPMorgan’s price target implies a potential upside of nearly 17% from the current levels.
The brokerage’s positive outlook is based on the following factors:
– A premium product mix, with 68% of its portfolio consisting of SUVs, contributing to higher per-unit profitability.
– Potential market share gains in the second half of FY26, driven by new capacity and model launches.
– A strong focus on capital expenditure efficiency and utilisation, resulting in industry-leading returns on capital employed (ROCE) of 80-90%.
– An export contribution of approximately 20%, which provides a cushion against domestic cyclicality.
JPMorgan expects the domestic passenger vehicle (PV) industry to experience muted growth for a few quarters, followed by a cyclical recovery starting in the second half of FY26.
Hyundai Motor India reported its September quarter results on November 12, which were lower on a year-on-year basis on all parameters.
The South Korean automaker’s India unit posted a 16% drop in its overall net profit to ₹1,375 crore for the September quarter. Revenue for the quarter also declined by 8% to ₹17,260 crore compared to last year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell by 10% to ₹2,205, while margin narrowed by 30 basis points on a year-on-year basis to 12.8%.
Out of the 11 analysts that track Hyundai Motor India, nine of them have a ‘Buy’ recommendation, while two of them have a ‘Sell’ call.
Shares of Hyundai Motor India ended 1.57% higher at ₹1,882.45. The stock is down 4% below its issue price of ₹1,960 per share.
