Shares of Hyundai Motor India (HMI) rose nearly 2% in early trading on November 27 after JPMorgan initiated coverage with an Overweight (OW) rating and a target price of ₹2,200, citing the company’s robust premium portfolio and strategic operational efficiencies.
Key Highlights:
- SUV Dominance: Hyundai’s 68% SUV mix drives higher per-unit profitability.
- Capex Efficiency: Focus on efficient capital expenditure and utilization supports an industry-leading ROCE of 80-90%.
- Market Outlook: Market share gains anticipated in 2HFY26, supported by new capacity expansions and model launches.
- Export Strength: Hyundai’s 20% export contribution provides a buffer against domestic cyclicality, ensuring resilience in a fluctuating market.
Market Reaction:
- As of 9:28 AM, Hyundai India’s shares were trading 1.07% higher at ₹1,900.10 on the NSE.
While JPMorgan projects muted growth for the domestic passenger vehicle industry in the near term, a cyclical recovery expected in 2HFY26 positions Hyundai for sustained long-term success.
