Synopsis: Hyundai Motors India is in focus after Goldman Sachs predicts its share price will rise by another 16 percent, citing that it will outperform its peers by gaining market share and introducing successful EV models.
Hyundai Motor India holds the record for India’s largest IPO, raising over Rs 27,858 crore and surpassing the previous milestone set by LIC, which had raised Rs 20,557 crore.
With a market capitalization of Rs 1,94,925 crore, the shares of Hyundai Motor India Ltd. made a day’s high of Rs 2,410 per share on Monday, hitting an all-time high. Since its debut on the stock exchange in October 2024, the company has delivered an impressive 31 percent return.
Leading international brokerage, Goldman Sachs, has initiated a Buy call on the stock with a target price of Rs 2,600 per share, signaling an upside potential of another 16 percent from its previous day’s closing price of Rs 2,240.70 per share.
The brokerage has pointed out that Hyundai is set to outshine its competitors in FY27–FY28, primarily due to its successful electric vehicle models, growing market share in emerging markets, and exciting new product launches, which are expected to increase market share by 120 basis points from FY25 to FY28.
The brokerage predicts a volume compound annual growth rate (CAGR) of over 8 percent for the next three years, compared to the domestic car industry’s 5.3 percent. In the near term, startup costs are likely to be balanced out by a stronger mix of SUVs and exports, along with potential benefits from a domestic market upturn in FY27.
Financial Highlights
Hyundai Motor’s revenue for Q1 FY26 came in at Rs 16,413 crore, registering a 5.4 percent decline from Rs 17,344 crore in the same quarter last year. Additionally, on a sequential basis, revenue declined by 9 percent from Rs 17,940 crore in Q4 FY25.
This downfall in revenue is majorly attributed to a 6.1 percent decline in volume to 1,80,399 units in Q1 FY25 from 1,92,055 units in Q1 FY25. Domestic volumes declined by 11.5 percent to 1,32,259 units; however, export volumes surged by 13 percent to reach 48,140 units in Q1 FY26.
Coming to its profitability, the company reported a net profit decline of 8 percent to Rs 1,369 crore in Q1 FY26 as compared to Rs 1,490 crore in Q1 FY25. Additionally, on a QoQ basis, it declined by 15 percent from Rs 1,614 crore.
In conclusion, even though there might be some short-term challenges affecting revenue and profits, Goldman Sachs is confident that Hyundai Motor India is set for long-term success. With its impressive electric vehicle lineup, increasing market share, and a robust product pipeline, the company is poised to outperform the wider industry in the years ahead.
Written by Satyajeet Mukherjee
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