Broker’s Call: Hyundai Motor India (Buy)
Emkay Global
Hyundai Motor India (HMIL) is poised for a comeback, as India is becoming an increasingly strategic global hub for the company. Over the past five years, HMIL has faced challenges, with a muted 5% domestic volume CAGR and a sustained loss in domestic market share. The company struggled with a relatively lean product cycle, limited capacity addition, and a focus on higher profitability.
However, the next five years could bring a strong turnaround, driven by significant investments and a growing strategic importance for Hyundai Motor Co. (HMC) in India. These investments will lead to a stronger product cycle, increased capacity, deeper localisation, and greater integration with HMC's global operations. HMIL's market share is expected to bottom out, but the company anticipates recovery from September 2026, coinciding with the launch of a mid-size SUV.
The firm maintains a Buy rating and increases its target price by about 6% to ₹2,600, projecting a volume/revenue/EPS CAGR of 11%/15%/16% over FY26-29E.
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