Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by new product launches and capacity expansion.
Basis of our Recommendation
Hyundai Motor India is positioned for a turnaround with an aggressive product strategy and significant capacity expansion aimed at capturing growth in the SUV and EV segments. Management anticipates strong domestic volume growth and robust export performance, despite facing margin pressures from commodity costs and competitive challenges. The outlook remains positive with expected EBITDA growth and market share gains, although geopolitical risks and execution uncertainties could pose challenges.
Why We Like This Stock
- Aggressive product strategy with 22 product interventions planned over FY27-30
- Projected domestic volume growth at ~12% CAGR and EBITDA growth at ~17% CAGR
- Strong order backlog and new model introductions expected to drive robust export performance
Things To Watch Out For
- Margin pressures anticipated from commodity cost inflation
- Geopolitical uncertainties and competition challenges could impact growth
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 69,829 | 69,193 | 70,763 | 77,651 | 87,729 |
| Profit Before Tax (Cr.) | 8,234 | 7,594 | 7,243 | 7,676 | 9,166 |
| PBT Margin | 11.8% | 11.0% | 10.2% | 9.9% | 10.4% |
| Net Profit (Cr.) | 5,939 | 5,561 | 5,481 | 5,809 | 6,937 |
| EPS | 73.1 | 68.4 | 67.5 | 71.5 | 85.4 |
Company Overview
Show Company Profile
Hyundai Motor India Limited engages in the manufacture and sale of passenger vehicles and parts in India and internationally. The company offers passenger vehicle models across sedans, hatchbacks, sports-utility vehicles (SUVs) and battery electric vehicles (EVs). The company provides motor vehicles, engine, and transmission and other parts, as well as provides related after-sales activities, and engineering services. It also exports its products to Latin America, Africa, the Middle East, and Europe. The company was incorporated in 1996 and is based in Gurugram, India. Hyundai Motor India Limited is a subsidiary of Hyundai Motor Company.