During Hyundai Motor India Ltd’s (HMIL) Investor Day on Wednesday, President and CEO Jose Munoz announced that the company plans to invest Rs. 45,000 crore. Around 60 percent of this investment will be dedicated to research and development, while the remainder will fund product upgrades and capacity expansion.
As part of its growth strategy, HMIL aims to launch 26 new models by FY30. This move comes as Hyundai faces stiff competition from domestic players such as Mahindra & Mahindra and Tata Motors.
HMIL projects a 7 percent annual growth in domestic sales and anticipates maintaining core earnings margins in the double-digit range of 11-14 percent. The company is targeting revenues of Rs. 1 lakh crore by FY30, up from Rs. 69,200 crore in FY25.
As part of its 2030 growth roadmap, HMIL aims for exports to contribute up to 30 percent of its overall business, increase revenues by 1.5 times, and surpass the Rs. 1 lakh crore mark by FY30. The company also plans to introduce its luxury brand, Genesis, to the Indian market in 2027.
Following these announcements, several leading brokerages issued positive recommendations on Hyundai Motor India. Morgan Stanley, HSBC, and Nomura highlighted the company’s ambitious Rs. 45,000 crore investment plan and the appointment of Tarun Garg as the next CEO. The brokerages expressed bullish outlooks, anticipating strong growth through FY30, driven by new model launches, a multi-powertrain strategy, and expansion into the premium segment.
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(I) HSBC has given Hyundai Motor India a “buy” rating with a target price of Rs. 2,800 per share, implying a potential upside of approximately 19 percent from Thursday’s closing levels of Rs. 2,357.5 on BSE.
The brokerage highlighted the company’s five-year volume CAGR of 7 percent and EBITDA margin guidance of 11-14 percent. While noting the large capital expenditure and back-loaded product launches as potential drawbacks, HSBC emphasised that Hyundai’s focus on exports is in line with expectations and that its long-term franchise prospects remain appealing, even though valuations are “not undemanding.”
(II) Nomura has also assigned a “buy” rating, with a target price of Rs. 2,846 per share, forecasting that Hyundai will deliver growth ahead of the industry through FY30, representing a potential upside of around 21 percent.
The brokerage identified opportunities in addressing “white spaces” in MPVs, SUVs, CNG, and hybrid segments, and highlighted the upcoming Genesis brand launch as a key positive. Risks, according to Nomura, include weaker EV margins and possible market share loss in SUVs to smaller car segments.
(III) Morgan Stanley has assigned Hyundai Motor India an “overweight” rating, with a target price of Rs. 3,066 per share, implying a potential upside of around 30 percent from Thursday’s closing levels.
The brokerage sees India emerging as Hyundai’s second-largest market by 2030, after the US. Key growth drivers identified include the company’s large-scale capex, the launch of seven new nameplates, a diversified multi-powertrain portfolio, and its luxury segment entry through Genesis. Morgan Stanley also described Hyundai’s FY30 revenue guidance as “conservative.”
Written by Shivani Singh
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