Hyundai Motor India Shares: Buy Recommendation Maintained by Motilal Oswal, 23% Upside Potential Expected
Motilal Oswal has maintained its ‘buy’ recommendation on Hyundai Motor India shares, expecting a potential 23% upside. The brokerage firm’s optimism stems from the company’s ambitious plans for the Indian market, including a significant investment outlay and an aggressive product launch strategy.
Investment Plans and Guidance
Hyundai Motor India Ltd. plans to invest a total of Rs 450 billion over FY26-30, with 60% allocated towards research and development and 40% towards capacity expansion and modernization. The company has guided for revenue of Rs 1 trillion, a margin of 11-14%, and a dividend payout range of 20-40% during the same period.
These plans demonstrate the company’s commitment to the Indian market and its intention to strengthen its position in the country’s rapidly evolving automotive landscape. As the Indian auto sector continues to grow, Hyundai Motor India is well-positioned to capitalize on the opportunities emerging in the market.
Product Launch Strategy
Hyundai Motor targets to launch 26 new models by 2030, including five electric vehicles (EVs). The company aims to achieve 100% localization in EV manufacturing by 2027, positioning India as a key global hub for its EV operations. Furthermore, Hyundai Motor aims for exports to constitute 30% of its total production by 2030.
This aggressive product launch strategy is expected to drive growth for the company, with a focus on eco-friendly powertrains. By 2030, 52% of Hyundai Motor’s mix is expected to feature eco-friendly powertrains, aligning with the company’s vision for a sustainable future.
Electric Vehicle Plans
Hyundai Motor’s plans for the EV segment are particularly noteworthy, given the Indian government’s push for electric mobility. The company’s aim to achieve 100% localization in EV manufacturing by 2027 is a significant step towards reducing dependence on imports and promoting domestic manufacturing.
As the electric vehicle industry in India continues to evolve, Hyundai Motor is well-positioned to capitalize on the emerging opportunities. The company’s focus on eco-friendly powertrains and its commitment to achieving 100% localization in EV manufacturing demonstrate its dedication to the Indian market and its intention to play a leading role in the country’s transition to electric mobility.
Export Plans
Hyundai Motor’s plans to increase exports from India are also significant, with the company aiming for exports to constitute 30% of its total production by 2030. This will not only drive growth for the company but also contribute to the Indian economy, with the potential to generate significant export revenues.
As the Indian economy continues to grow, the automotive sector is expected to play a key role in driving growth and generating employment opportunities. Hyundai Motor’s plans to increase exports from India are a positive development, demonstrating the company’s commitment to the Indian market and its intention to contribute to the country’s economic growth.
Conclusion
In conclusion, Motilal Oswal’s maintenance of its ‘buy’ recommendation on Hyundai Motor India shares, with a potential 23% upside, is a significant development for investors. The company’s ambitious plans for the Indian market, including its investment outlay, product launch strategy, and focus on electric vehicles, demonstrate its commitment to the country and its intention to capitalize on the emerging opportunities in the automotive sector.
As the Indian stock market continues to evolve, investors are advised to keep a close eye on Hyundai Motor India shares, given the company’s growth potential and its position in the rapidly evolving automotive landscape. With its focus on eco-friendly powertrains, commitment to achieving 100% localization in EV manufacturing, and plans to increase exports, Hyundai Motor India is well-positioned for long-term growth and success in the Indian market.
