Shares of Hyundai Motor India (HMIL) are in focus after brokerages maintained positive views on the stock despite margin pressure in the third quarter, citing volume growth drivers and upcoming catalysts.
CLSA maintained an Outperform rating on Hyundai Motor India with a target price of ₹2,853. The brokerage said the company’s 3QFY26 EBITDA margin came in at 11.2%, which was 130 basis points below its estimate and declined 268 bps quarter-on-quarter. CLSA attributed the margin compression to higher fixed costs linked to the new plant, raw material cost inflation, and a weaker product mix due to a lower export share.
However, CLSA noted that margin pressure was partly offset by lower discounts, which fell to 2.6% of average selling price from 3.2% in the previous quarter. The brokerage said the company remains optimistic on volume growth, driven by GST rate cuts, new product interventions, continued export growth, and improved capacity.
Nomura reiterated a Buy rating on the stock with a target price of ₹2,698. The brokerage said margins were slightly lower in the third quarter but highlighted that a new model cycle from the second half of FY27 remains a key catalyst. Nomura also cited the upcoming model launches and a CEO change as potential drivers for outperformance.
At the current market price of ₹2,208.80, CLSA’s target price implies an upside of around 29%, while Nomura’s target price suggests an upside of approximately 22%.
Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of the respective brokerages and do not constitute investment advice or recommendations by the publication.
