In the last month, the shares of Hyundai Motor India have risen by 3.40%. In the last two weeks, the shares have jumped by 9.63%.Hyundai Motor India shares rose by nearly 2% to the day's high of Rs 1,926 on the BSE after Morgan Stanley and JPMorgan initiated coverage.
JPMorgan and Morgan Stanley have initiated coverage on the automaker with an overweight rating, citing its strong growth potential, strategic positioning in the SUV and electric vehicle (EV) segments, and promising valuation metrics.
JPMorgan and Morgan Stanley expect robust returns for investors, setting ambitious target prices of Rs 2,200 and Rs 2,418, respectively, over the next year.
Morgan Stanley has initiated an Overweight rating on Hyundai Motor, with a target price of Rs 2,418, indicating a potential upside of 28% from the current market price of Rs 1,880.
The brokerage anticipates a favorable shift in demand and the model cycle, which, along with new capacity additions, market revival, and product initiatives, is expected to drive growth in FY26 and FY27.
Hyundai’s strong positioning in the SUV segment and its advancements in electric and hybrid electric vehicles (EVs/HEVs), supported by its parent company, further bolster its growth prospects.
The stock’s valuation also appears attractive, with a projected FY27 price-to-earnings (P/E) ratio of 19x, compared to the India OEM average of 22x (excluding Tata Motors).
JPMorgan has initiated an Overweight rating on Hyundai, setting a target price of Rs 2,200, reflecting a potential upside of 17% from its current market price of Rs 1,880.
The brokerage views Hyundai as a key beneficiary of India's passenger vehicle market growth and the ongoing premiumization trend.
It anticipates a recovery in the passenger vehicle industry in the second half of FY26, which could bolster the company’s prospects.
Hyundai's strong SUV portfolio contributes to higher per-unit profitability compared to peers, while its efficient capital expenditure strategy enhances its return on capital employed (ROCE).
Additionally, the company is well-positioned to gain market share in H2FY26, supported by new capacity expansions and model launches.
With exports accounting for 20% of its revenue, Hyundai enjoys a cushion against domestic market cyclicality, offering stability.
Key triggers for further growth include the company's ability to sustain healthy margins, maintain strong ROCE, and achieve market share gains.
In the last month, the shares of Hyundai Motor India have risen by 3.40%. In the last two weeks, the shares have jumped by 9.63%.
