Hyundai Motor India gets thumbs up from global brokerages; stock down more than 2%
Shares of leading auto player Hyundai Motor India (HMIL) in Monday’s (January 13, 2025) trade fell more than 2 percent to an intraday low of Rs 1,746 apiece on the BSE as global brokerages felt they were picking up the stock and starting their operations. same spread.
At around 12:56 pm, Hyundai Motor shares were down 0.8 percent or Rs 14.25 at Rs 1,772.70.
Global Hong Kong brokerage CLSA has initiated its coverage on the leading passenger vehicle (PV) player with an ‘outperform’ rating and price target pegged at Rs 2,155, implying a potential upside of around 21 percent.
The brokerage points out that the company continues to focus on aspiring buyers with a diverse and affordable PV portfolio, which includes 63 percent UV or hybrid vehicles. It added that capacity expansion at the company’s Talegaon plant is expected in FY27.
The company reportedly acquired the Talegaon site of General Motors India in Maharashtra in January last year. In addition, the company had to invest Rs 6,000 crore in the government as per the South Korean carmaker.
CLSA emphasized that HMIL aims to maintain 13 percent Earnings Before Interest, Taxes, Depreciation, and Amortization or EBITDA margins even though the market continues to be challenging for the automobile company.
The brokerage projects a CAGR of 13 percent over the period between FY25-FY27. Also, it revealed that some of the company’s major launches are planned for the 2025-26 financial year.
Another big start as seen by the global brokerage is that the company’s loss of market share will end based on unit economics and a successful UV portfolio.
HMIL is one of the few foreign car manufacturers that has been successful in the domestic market competition for more than two decades, CLSA explained.
Meanwhile, HSBC resumed its coverage on the stock with a buy rating and target set at Rs 2,200, implying potential gains of over 23 percent.
The lowest price of Hyundai Motor shares
Since its listing on October 22, 2024, Hyundai’s stock has corrected nearly 9 percent to its IPO issue price of Rs 1,960.
