Hyundai Motor India is set to make its debut on the stock exchanges today at 10 AM, and brokerages have already shared positive outlooks for the newly listed stock. Nomura and Macquarie have initiated their coverage with optimistic ratings, highlighting the company’s strong growth potential and premium positioning in the Indian automotive market. Here’s what they have to say:
Nomura: Buy | Target Price: ₹2472
On Hyundai Motor India’s listing day, Nomura has initiated coverage with a ‘Buy’ rating and a target price of ₹2472. The brokerage is bullish on Hyundai’s premiumization efforts, expecting this to drive high-quality growth. Hyundai is projected to achieve an 8% volume CAGR over FY25-27F, backed by the launch of 7-8 new models, including facelifts. Additionally, Nomura forecasts an improvement in Hyundai’s EBITDA margins, from 13.1% in FY24 to 14% by FY27F, driven by a better product mix and operational efficiency. Hyundai is expected to deliver a 17% earnings CAGR over the next three years, making it a strong buy for investors.
Macquarie: Outperform | Target Price: ₹2235
Macquarie has initiated an ‘Outperform’ rating on Hyundai Motor India, with a target price of ₹2235, implying a 14% upside to its issue price. The brokerage sees Hyundai’s favorable portfolio mix and premium positioning as key factors that warrant a premium PE multiple compared to its peers. Additionally, Hyundai’s powertrain optionality and potential market share gains from upcoming model and powertrain launches are viewed as medium-term positives. Macquarie positions Hyundai as a pure play on premiumization and growth in the Indian car market.
As Hyundai Motor India lists on the stock exchanges today, both brokerages signal strong confidence in the stock, making it a Buy for investors seeking exposure to the premiumization trend in India’s passenger vehicle market.
Disclaimer: The views and recommendations provided in this article are based on the analysis of brokerage firms and do not represent the views of the publication or the author. Investors are advised to consult with their financial advisors before making any investment decisions. The publication and the author are not responsible for any losses that may arise from investment actions based on this article
