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Hyundai Motor Shares Is Still A 'Buy' Says Motilal Oswal Despite Weak Q3 — Here's Why

Motilal Oswal believes Hyundai Motor remains well-positioned to benefit from the premiumization trend in India, given its mix is in favor of SUVs.

Hyundai Motor Shares Is Still A 'Buy' Says Motilal Oswal Despite Weak Q3 — Here's Why
Hyundais revenue increased 8% YoY to Rs 17,900 crore, in line with brokerage's estimates.
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Hyundai Motor India Ltd
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Hyundai Motor India Ltd.'s reported a profit after tax of Rs 1,230 crore, falling short of Motilal Oswal's estimate of Rs 1,380 crore as the automaker faced sharper-than-anticipated margin pressures during the quarter. Gross margins contracted 130 basis points QoQ due to higher input costs and an adverse mix.

Motilal Oswal noted that Hyundai Motor's growth trajectory remains intact, supported by its upcoming product pipeline and continued strength in the SUV segment. The brokerage has revised its volume forecasts, now factoring in a ~7% volume CAGR over FY25–28E, which is largely back-ended. 

Robust overseas demand is also expected to play a role, with export volumes projected to grow at a strong 19% CAGR through FY28.

The brokerage expect start-up costs for the new Pune plant to impact earnings in the near-to-medium term. Overall, Hyundai Motor is expected to deliver a 12% earnings CAGR over FY25-28.

Motilal Oswal believes the company remains well-positioned to benefit from the premiumisation trend in India, given its mix is in favor of SUVs. Reiterates Buy with a target price of Rs 2,567, valued at 27x Dec'27E earnings per share.

Click on the attachment to read the full report:

Motilal Oswal Hyundai Motors Q3 Results Review.pdf
VIEW DOCUMENT

Also Read: Adani Group Companies To Be A Key Beneficiary Of India-US Trade Deal, Says Jefferies - Check Other Key Stocks

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