'Buy' Hyundai Motor Shares Maintains Motilal Oswal, Sees 23% Potential Upside — Here's Why

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Motilal Oswal Report

Hyundai Motor India Ltd. plans to invest a total of Rs 450 billion over FY26-30, with 60% to be invested in research and development and 40% in capacity expansion and modernization.

It has guided for revenue of Rs 1 trillion, margin of 11-14% and a dividend payout range of 20-40% during the same period. Hyundai Motor targets to launch 26 new models by 2030 (including five EVs), with 52% of its mix featuring eco-friendly powertrains.

Of these, seven are expected to be new nameplates, with two of them to be launched over FY27-28 and the remaining five in the next two years. 

Hyundai Motor launched the fully redesigned Venue on Oct 15. It would also look to enter the MPV and off-road SUV segments in due course. It plans to launch Genesis (luxury brand) in India by 2027 and ramp up operations significantly by 2032.

For EVs, Hyundai Motor aims to achieve 100% localization in EV manufacturing by 2027, positioning India as a key global hub for the company’s EV operations. Further, the company aims for exports to constitute 30% of its total production by 2030. We keep our estimates unchanged at this stage.

We factor in Hyundai Motor to post a CAGR of 10%/15%/16% in volume/Ebitda/PAT over FY25-28E. Reiterate Buy with a target price of Rs 2,979, valued at 30x Sep’27E EPS.

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