HYUNDAI is strengthening its presence in India with a strategic focus on SUV dominance, EV expansion, and manufacturing growth. Alongside its SUV success, HYUNDAI is accelerating its transition to electric mobility, with multiple EV models in development and significant investments in charging infrastructure and localization of key components to enhance cost efficiency. The upcoming Pune plant will further bolster production capacity, supporting both domestic demand and exports while positioning India as a key global manufacturing hub. Despite geopolitical challenges, HYUNDAI has successfully diversified its exports by expanding into emerging markets across Africa, Latin America, and South Asia, while also evaluating the potential for EV exports. Thus, we initiate buy from current price levels.
Initiate buy with a price target of INR 2,163
HYUNDAI remains optimistic about market growth, driven by favorable economic conditions, improving rural demand, and a strong pipeline of new products across both internal combustion and electric vehicle segments. With a focus on innovation, localization, and premiumization, HYUNDAI is well-positioned to sustain its leadership in India’s rapidly evolving automotive landscape. Thus, we value company 24 times of its estimated earnings for FY27 and rate it buy at current levels.
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One response to “BUY : HYUNDAI-EQ( HYUNDAI ) [25844]”
Hold. Target price revised upwards to INR 2,600
We initiated coverage on Hyundai on March 24, 2025, with a BUY rating at then-current market price (CMP) of ₹1,700, assigning a target price of ₹2,163, implying a potential upside of 26%. Since then, the stock has surpassed our
expectations, hitting a record high of ₹2,265.30 on July 1, 2025, comfortably exceeding our target. Currently, the stock is trading at a TTM P/E multiple of 30, up from 24x at the time of our recommendation. In a volatile market, HYUNDAI delivered consistent performance, good strategic execution, and notably through expansion, automation, and a continued strong domestic presence. While near term headwinds persist, the company’s long-term growth story remains intact.
Existing investors should stay the course, allowing the strategy to unfold, while new investors may wait for a minor pull-back for better entry point, given the current rich valuation. In the current market environment, holding without chasing momentum is the most sensible approach. Anchored by solid fundamentals and long-term
growth levers, we reassign a premium valuation multiple of 30x on FY27F EPS, to arrive at target price of ₹2,600, a further upside of 24% in the next 12 months.
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