Hyundai Motor India Ltd. share price target

We met with Hyundai's (HMI) management to understand the current industry landscape and the company’s strategic direction. The overall demand environment remains muted, with the PV segment expected to grow modestly at 1-4% in FY26E.

Update Note

Hyundai Motor India (HMIL) logged a soft quarter, with revenue/EBITDA down 8%/10% YoY, respectively; EBITDA margin declined by 70bps QoQ to 12.8%on lower volumes and higher discounts.

Hyundai Motor (HMI)’s 2QFY25 performance was hit by ~9% YoY volume decline and higher discounts, leading to a 30bp YoY/70bp QoQ EBITDA margin contraction to 12.8%.

We initiate coverage on Hyundai Motor India (HMIL) with REDUCE (TP of Rs1,750, at ~23x core Sep-26E PER, similar to MSIL) amid a lackluster ~5% EPS CAGR over FY24-27E. HMIL has established a strong franchise in India.

Hyundai Motors India (HMI) holds a diverse portfolio mix that covers almost 87% of
India’s passenger vehicle (PV) market.

IPO NOTE

Hyundai Motor India Limited Issue Snapshot: Issue Open: October 15 October 17, 2024 Price Band: Rs. 1865 1960 (Discount of Rs 186 per share for all eligible employees) *Issue Size: Up to Rs 27,870 cr (Entirely Offer for sale including employee reservation of upto 778,400 eq sh) Reservation for: QIB upto 50% eq sh Non-Institutional atleast 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail atleast 35% eq sh Face Value: Rs 10 Book value: Rs 149.52 (June 30, 2024) Bid size: - 7 equity shares and in multiples thereof 100% Book built Issue