News

Hyundai Motor India shares have the potential to trade above their IPO price, analysts say post Q4Of the 21 analysts that have coverage on Hyundai Motor India, 18 have a "buy" rating and three have a "sell" rating.By Shloka Badkar   May 19, 2025, 8:51:36 AM IST (Published)3 Min ReadShares of Hyundai Motor India Ltd. are in focus after analysts tracking the stock projected an upside potential of as high as 24.5% on India's largest IPO till date.

Brokerage firm Nomura has a "buy" rating on the stock with a price target of ₹2,291 per share, which implies a potential upside of 24.5% from Friday's closing levels.

CLSA has an "outperform" rating on the stock with a price target of ₹2,155 apiece, implying an upside of 17.1% from Friday's closing price.

JPMorgan has an "overweight" rating on the Hyundai Motor India, with a price target price of ₹2,060 per share, which implies a potential upside of close to 12% from current levels.

Nomura

Nomura said Hyundai Motor India has a stronger visibility on medium-term growth, with a robust new model cycle from the second half of this fiscal, coupled with an increased focus on export.

Nomura said Hyundai Motor India's results were quite resilient in tough market conditions and ahead of its peers. The brokerage also raised its target multiple for FY27 to 25x from the previous 23x.

CLSA 

CLSA said Hyundai Motor India's earnings before interest, taxes, depreciation and amortisation (EBITDA) margin came in at 14.1%, which was up 285 basis points sequentially and 200 basis points higher than estimates. This was led by a higher-than-expected average selling price, which was up 5% sequentially.

This increase was driven by price hikes, a moderation in discounts, a rich product mix and government subsidies, CLSA said.

The brokerage said Hyundai Motor India is cautiously optimistic on volume growth for the financial year 2026 and it expects the company to grow in line with the industry.

CLSA said it believes the auto maker will gain market share in FY27 post its new plant operationalisation.

JPMorgan

JPMorgan said Hyundai Motor India's fourth quarter is a beat, largely due to higher-than-expected average selling prices.

Its revenue of ₹17,490 crore, which was up 2% from the previous year, and 3% ahead of JPMorgan's estimates. Its EBITDA of ₹2,530 crore was 20% ahead of estimates and EBITDA margin of 14.1% expanded further than estimates of around 12.1%-12.2%.

JPMorgan said the improvement in average selling prices was driven by a combination of three factors:

Moderation in discounting — 2% in the fourth quarter compared to 2.6% in the third quarter

Price increase of 0.6% in January

A favourable product mix

The brokerage said Hyundai Motor India's management expects a muted domestic growth environment in FY26 and the auto maker is set to grow in line with the industry.

Its export outlook is better with a growth projection between 7% and 8%.

Of the 21 analysts that have coverage on the stock, 18 have a "buy" rating and three have a "sell" rating.

Shares of Hyundai Motor India Ltd ended the previous session 0.2% higher. The stock has gained nearly 9% in the past month. The stock continues to trade below its IPO price.

Also Read: Premier Energies Q4 Results: Aggressive expansion plans, new JV highlight strong earningsContinue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsbrokerageCLSAHyundai MotorHyundai Motor IndiaJPMorganNomurashare market today