Citi has initiated coverage on Hyundai Motors with a ‘Buy’ rating and a target price of ₹2,250/share, reflecting a potential upside of 24.8% from the current market price (CMP) of ₹1,803.00.

Key Highlights:

  • Positive Factors:
    1. Strong parentage and brand reputation.
    2. Diverse model lineup with a higher proportion of SUVs.
    3. Increased focus on premiumization to drive margins.
    4. Wide sales and service network ensuring strong customer reach.
    5. Potential upside from exports expansion.
  • Capacity Expansion: The company’s new plant capacity, expected to come online in 2HFY26, should drive significant volume growth.
  • Key Risks:
    1. Elevated competition in the automotive sector.
    2. Extensive related-party transactions raising concerns.
    3. Regulatory risks impacting operations or profitability.

Citi’s positive stance reflects Hyundai Motors’ strategic positioning to capture domestic and export demand while leveraging its strong product portfolio and brand equity.

Disclaimer: The above analysis is based on inputs provided and is for informational purposes only. It does not constitute financial advice. Readers are advised to consult their financial advisors before making any investment decisions.

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