Here Are The Three Key Positives Why Hyundai Motor Is A 'Buy' For Yes Securities Post Q1 Results

Hyundai Motor India Ltd. has a strong potential for growth given the strong SUV preference among the consumers, robust multi-powertrain models in the product pipeline and the premium features.

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Yes Securities Report

Healthy earnings, return ratios, and FCF among key positives -

Hyundai Motor India Ltd. has a strong potential for growth given the strong SUV preference among the consumers, robust multi-powertrain models in the product pipeline and the premium features.

All these factors are estimated to drive healthy volumes /revenue / Ebitda/Adj.PAT CAGR of ~8%/10.8%/12.6%/10.8% over FY25-28E.

We expect healthy free cash flow generation of Rs 60 billion in FY26-27E, implying FCF yield of 2-2.5%, which is attractive.

Management indicated domestic volumes continued to be challenging and expected to remain so as near-term sentiments remain subdued while expect a recovery led by favorable monsoon, festive, interest rate cut, tax relief, and pay commission benefits.

Hyndai Motor to focus on product portfolio and network expansion. Rural continues to do well with its contribution increased to 22.6% in Q1 FY26 (vs 19.9% YoY and 20.9% in FY25).

Exports on the other hand, to maintain the positive momentum across geographies with strong growth witnessed in Africa +28%, Mexico +14% in 1QFY26 YoY. Overall, 6-7% volume guidance maintained for exports.

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