Hyundai Motor India is currently trading at a premium to Maruti Suzuki, which we believe is because of the company's stretched valuations. Considering that the passenger vehicle industry has got a fillip post the GST rate rationalization, we expect it to trade close to, but below Maruti Suzuki's valuation.
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.
-
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI -
"I Am A Material Man In A Material World': Quantum Advisors' Ajit Dayal On NDTV Profit Ignite
HDFC Securities Institutional Equities
We initiate coverage on Hyundai Motor India with a Reduce rating, valuing it at 25x Sep-27 EPS for a target price of Rs 2,236.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Hyundai Motor India has stood out in the Indian market over the years, being perceived as a more premium brand vs most key competition. However, competition has caught up in terms of presence in the SUV space and advanced tech and features, leading to the company losing market share from 17.4% in FY16 to 13.9% in FY25.
A key reason for this has been the lack of aggression shown by Hyundai Motor and parent Hyundai Motor Corporation in the Indian market, focusing instead on other core markets. However, we are seeing green shoots of aggression with management announcing 26 model launches (including refreshes and facelifts) by FY30.
Going forward, the passenger vehicle market in India, being underpenetrated vs key developed and developing markets, would benefit from the GST rate rationalization, leading to higher sustained demand in the medium term.
Additionally, Hyundai Motor's presence in the entry-level SUV segment with Exter, a gap that is there in most competitor portfolios, should benefit from customers uptrading from hatchbacks to SUVs.
Though we are cautious for now, we will closely watch out for any change in business strategy of the management that could help revive the company's standing in India.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
