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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Motilal Oswal Report
Hyundai Motor India Ltd. delivered a strong beat to our estimates in Q4 FY25, led by much better operational performance. Ebitda margins improved 280 bp QoQ to 14.1% (flat YoY), ahead of our estimate of 12.6%, aided by an improved mix, lower discounts and higher government incentives.
Hyundai Motors targets to launch 26 products (including variants) by FY30, of which eight would be launched over FY26-27E. Considering the launch pipeline, we now factor in a 7% volume CAGR for Hyundai Motors over FY25-27E, largely backended.
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%.
We believe Hyundai Motors remains well placed to benefit from the premiumization trend in India given its mix in favor of SUVs. Maintain Buy with a target price of Rs 2,137, valued at 26x FY27E.
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