Hyundai Motor India (HMI) shares were in focus after leading brokerages Morgan Stanley, HSBC, and Nomura reiterated their bullish stance on the automaker, citing robust medium-term growth prospects, capacity expansion, and a diversified powertrain and product strategy. The brokerages see up to 27% upside from the current market price of ₹2,418.00, driven by steady domestic demand, new model launches, and an ambitious roadmap through 2030.
Morgan Stanley on Hyundai:
Morgan Stanley maintained an Overweight rating with a target price of ₹3,066, implying an upside of nearly 27% from current levels. The brokerage said India is expected to become Hyundai Motor Company’s second-largest market after the US by 2030, supported by a ₹450 billion capex plan, seven new nameplates, a multi-powertrain strategy, and the upcoming luxury foray under the Genesis brand.
The report highlighted Hyundai’s strong product pipeline and scale-driven efficiency, noting that the company’s FY30 revenue guidance of ₹1 trillion-plus appears conservative. On FY27 estimates, Morgan Stanley said Hyundai Motor India trades at 26.3x P/E, compared to 25.4x for Maruti Suzuki and 23.8x for M&M’s tractor business, suggesting Hyundai’s valuations remain justified given its superior growth visibility.
HSBC on Hyundai:
HSBC reiterated its Buy rating with a target price of ₹2,800, citing a healthy five-year volume CAGR of 7%, EBITDA margins of 11–14%, and a continued focus on exports. The brokerage said the company’s strategic plans were broadly in line with expectations but flagged concerns over higher capex, which could lead to an increase in depreciation and amortisation costs. HSBC added that while valuation is “not undemanding,” Hyundai’s long-term franchise potential in India remains attractive, driven by product innovation and premium positioning.
Nomura on Hyundai:
Nomura maintained a Buy rating with a target price of ₹2,846, highlighting that Hyundai aims to outpace industry growth through FY30. The brokerage said the company’s strategy of filling product gaps in MPVs, SUVs, CNG, and hybrids would be a key growth catalyst. Nomura also sees the launch of the Genesis luxury brand in India as a strong positive for brand diversification. However, it cautioned that lower EV margins and potential SUV share loss to entry-level cars could be key medium-term risks.
Across brokerages, analysts view Hyundai Motor India as a key beneficiary of India’s expanding auto market, backed by a strong model pipeline, robust exports, and product mix diversification. Most expect steady revenue growth and resilient margins as the company enters its next phase of expansion.
Disclaimer: This article is for informational purposes only and not a recommendation to buy or sell any securities. Brokerage views are based on their respective research reports and publicly available information.
