Hyundai Motors stock analysis and expert insights in detail

Stock overview

Ticker	HYUNDAI
Sector	Automobiles
Market Cap	₹ 2,02,500 Cr
CMP (Current Market Price)	₹ 2,492
52-Week High/Low	₹ 2,624/ ₹ 1,542
P/E Ratio	38x

About Hyundai Motors

• Parent Company: Hyundai Motor Company, South Korea.
  
• India Presence: Entered India in 1996; headquartered in Chennai.
  
• Market Position: #2 player in India’s passenger vehicle segment, holding ~15–16% market share.
  
• Key Products: Creta, Venue, Alcazar, Exter (SUVs); i20, Grand i10 Nios (hatchbacks); Verna (sedan); IONIQ 5 (EV).
  
• Manufacturing: Two plants in Tamil Nadu with annual capacity of ~850,000 vehicles. A new plant in Talegaon, Maharashtra is under development.
  
• Exports: Among India’s top car exporters, shipping to 80+ countries.
  

Growth factors for Hyundai Motors

1. SUV Boom in India

• Hyundai dominates the compact and mid-SUV space with Creta and Venue.
• Creta continues to be one of the top-selling SUVs in India.
• New launches like Exter have expanded Hyundai’s reach into the entry-level SUV segment.
  

2. Electric Vehicle (EV) Push

• Launched IONIQ 5 (premium EV), receiving positive response.
• Plans to launch mass-market EVs by 2026 with local production.
• Heavy investments in EV charging and battery localization in India.
  

3. Strong Export Base

• Hyundai is India’s top passenger car exporter, shipping models like Verna and i20.
• Benefits from India as a low-cost manufacturing hub.
  

4. Premiumization Trend

• Indian buyers are shifting toward feature-rich, connected cars.
• Hyundai leads in this space with connected tech, ADAS features in Verna, Creta, and Alcazar.
  

5. Capacity Expansion

• New Talegaon plant (acquired from GM) will boost production capacity by ~200,000 units, supporting both exports and domestic demand.

Q1 FY26 Financial Performance

Metric (values in ₹. Cr )	Q1 FY 26	YoY Growth	QoQ Growth
Revenue	16,412 cr	-5%	-9%
EBITDA	2,185 cr	-7%	-14%
EBITDA %	13.3%	-20 bps	-80 bps
Profit after Tax	1,369 cr	-8%	-15%

• Hyundai Motors reported soft Q1 2026 results with a dip on both revenue and profitability on a YoY and QoQ basis.
• The business declared a dividend of INR 21 to all its shareholders which suggests improved cash flow and good foresight into the future business growth.

Detailed competition analysis for Hyundai Motors

Company	Market Cap	Revenue	P/E Multiple	RoCE
Hyundai Motors	2,02,500 Cr	₹ 16,412 cr	37x	54%
Maruti	4,62,600 Cr	₹ 38,605 cr	32x	22%
M&M	4,14,200 cr	₹ 45,529 cr	30x	14%
Tata Motors	2,50,900 cr	₹ 1,04,427 cr	11x	20%

Company valuation insights: Hyundai Motors

As per the Discounted Cash Flow analysis:

It estimates the intrinsic value of Hyundai Motors shares based on expected future cash flows:

• Intrinsic Value Estimate: ₹2690 per share
• Upside Potential: 8%
• WACC: 11.9%
• Terminal Growth Rate: 3.4%

Major risk factors affecting Hyundai Motors

1.Intense Competition

• Maruti Suzuki dominates with volumes.
• Tata Motors and Mahindra are catching up strongly in EVs and SUVs.
• Kia (Hyundai’s sister brand) also competes in the same segment, sometimes overlapping.
  

2. EV Transition Costs

• Building EV infrastructure and localization requires heavy capex.
• Mass adoption in India may take longer due to charging infrastructure gaps.
  

3. Regulatory Pressures

• BS6 Phase II norms, safety regulations, and EV policies demand constant product upgrades.
• Could increase production costs.
  

4. Export Dependence

• Global slowdowns or geopolitical tensions could impact exports.

Sector Tailwinds

• India’s passenger vehicle market is growing at ~7–8% CAGR, led by SUVs and EVs.
  
• Rising disposable income, urbanization, and preference for premium features support Hyundai’s positioning.
  
• Government support for EV adoption (FAME II, state EV policies) gives Hyundai an advantage.
  

Outlook for 2025–26

1. Domestic Sales Growth:
   
   • SUVs will remain Hyundai’s backbone, especially with the next-gen Creta and Venue updates.
     
   • New compact and mid-sized EV launches in the pipeline.
     
2. Export Momentum:
   
   • Expansion into newer markets expected, supported by Talegaon plant production.
     
3. EV & Hybrid Expansion:
   
   • Hyundai may introduce more affordable EVs, leveraging group synergies with Kia.
   • Focus on localization of EV components to reduce costs.
     
4. Financial Performance:
   
   • Expected revenue growth of 12–15% YoY in FY25–26.
   • Operating margins likely to remain stable (~12–13%), supported by premium SUV mix.

Technical analysis of Hyundai Motors

• Resistance: ₹2600
• Support: ₹2400
• Momentum: Neutral to Bullish
• RSI (Relative Strength Index): 53 (Neutral)
• 50-Day Moving Average: ₹2490
• 200-Day Moving Average: ₹2370 

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Hyundai Motors stock recommendation by Ketan Mittal

Buy with a long term view

Target Price: ₹2700 (12 months)

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Conclusion 

Hyundai Motor India is not just riding the SUV wave but also preparing aggressively for the EV future. With a strong brand, solid exports, new capacity addition, and premium positioning, Hyundai is in a sweet spot to capture India’s automobile growth story. While competition and EV transition costs are challenges, Hyundai’s execution track record suggests it will continue to be a strong long-term player in India’s passenger car market.