Hyundai Motor India
| Photo Credit:
REUTERS
Target: ₹1,750
CMP: ₹1,583.65
We recently met the management of Hyundai Motor India (HMIL).
Key Takeways: Near-term domestic PV industry outlook remains soft; HMIL is sustaining performance, buoyed by frequent product refreshes that have also helped portfolio health (discounts at about 2-2.5 per cent of ASP vs around 3.5-4 per cent for the industry); hopes for improved demand trends in a couple of quarters for the industry; HMIL’s well-timed capacity expansion (150K units coming onstream from Oct-25) and improved product pipeline (including in ICE, apart from 3 BEVs) would help it capitalise from CY26; with easing of the Red Sea issue (though not settled yet), exports to the Middle East are picking up and likely to sustain the strong momentum (Middle East and Africa form 2/3rd of exports; HMIL exports to the US are nil); India to be positioned as a global hub for emerging markets; exports to also ensure sustained optimum capacity utilisation; and stable commodities, price increases undertaken in Jan-25 (70-80bps), and control on discounts to aid sequential margin improvement in Q4-FY25.
We maintain Add on HMIL with unchanged TP of ₹1,750 (rolled-over) and largely unchanged estimates. We prefer MSIL due to better launch visibility (refer to our HMIL IC – Strong franchise, but high valuation amid muted growth outlook).
Published on April 7, 2025
