Hyundai Motor India Gets A Buy As Yes Securities Initiates Coverage; Sees 24% Upside

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..Yes Securities Report.We initiate coverage on Hyundai Motor India Ltd. with Buy (target price of Rs 2,194) at 24 times FY27E), valuing the stock at par with Maruti Suzuki India Ltd. Although Hyundai Motor India is aligned well with passenger vehicle segment trends, its growth has been capacity-constrained as reflected in lower domestic volume compound annual growth rate of ~9% (versus ~16% for industry) over FY21-24. The GM plant acquisition will surely boost growth through vital capacity addition in phases. Besides leveraging the strong parentage of Hyundai Motor Corp, Hyundai Motor India is fast evolving in line with a dynamically changing tech landscape, which will slash lead times for new product development, make India franchise definitively robust, and help strengthen exports (~21% volume share in FY24). Hyundai Motor India is likely to become a thriving export hub for Hyundai Motor Corp. Further, it has consistently launched/revamped models; Creta EV launch is slated for Q4 FY25. We see the MPV segment as a portfolio gap, which means Hyundai Motor India can gainfully challenge the duopoly of Maruti Suzuki and Kia. Its impressive earnings should continue unabated; we estimate volumes / revenue /Ebitda/adjusted profit after tax CAGR of 8.2%/11.5%/15.1%/11.4% over FY25-27E. We also expect healthy free cash flow of Rs 60/74 billion in FY26E/27E, implying FCF yield of 3-4%, return on equity of ~40% in FY27E, which is attractive. We prefer Mahindra and Mahindra Ltd., TVS Motor India Ltd. followed by Hyundai Motor India among OEMs from our coverage universe..Click on the attachment to read the full report:.Afcons Infrastructure Share Price Surges As Investec Initiates Coverage With A 'Buy'.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hyundai Motor India Gets A Buy As Yes Securities Initiates Coverage; Sees 24% Upside

Yes Securities initiate coverage on Hyundai Motor India with Buy, valuing the stock at par with Maruti Suzuki.

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