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Hyundai Motor India Q4 Review: Motilal Oswal Maintains 'Buy' On Premiumization Trend, New Launches

Hyundai Motors remains well placed to benefit from the premiumization trend in India given its mix in favor of SUVs, hence Motilal Oswal maintains Buy on the stock.

<div class="paragraphs"><p>Hyundai Motors' Ebitda margins improved 280 bp QoQ to 14.1% (flat YoY), ahead of estimate of 12.6%, aided by an improved mix, lower discounts and higher government incentives.(Representative image. Photo source: Envato)</p></div>
Hyundai Motors' Ebitda margins improved 280 bp QoQ to 14.1% (flat YoY), ahead of estimate of 12.6%, aided by an improved mix, lower discounts and higher government incentives.(Representative image. Photo source: Envato)
Considering its launch pipeline, Motilal Oswal now factors in Hyundai Motors to post a 7% volume CAGR over FY25-27E, largely back-ended. We also factor in start-up costs of the new Pune plant to impact earnings in the near term and normalize in FY27E. Hence, we raise our FY26E EPS by only 1%, while we increase our FY27E EPS by 7%.
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