ICICI Securities Initiates Coverage on Hyundai Motor India with BUY Rating, Sets Target Price at INR 2,150

The report underscores that HMIL’s strong global parentage enables early identification of global emerging trends, facilitates R&D support, and provides access to a global product portfolio. The company has successfully tapped into the premiumisation trend early, strengthening its presence in higher-value segments. However, HMIL has lost market share in the domestic UV market in recent times amid stiff competition and an over-reliance on Creta, raising concerns about concentration risks within its portfolio.

To address these challenges, HMIL plans to undertake 26 product interventions, including 7 new nameplates, over FY26–30. This strategy is aimed at filling the whitespaces in its product portfolio, a move that could augur well and drive its domestic market share, according to the report. The success of these new launches remains a key monitorable for stakeholders and industry observers.

Exports are also expected to support near-term growth, although their long-term prospects are likely capped, indicating limited scalability beyond immediate gains. Despite these constraints, ICICI Securities maintains a positive outlook on the company’s growth trajectory.

The report models HMIL’s volume, EBITDA, a

nd PAT to grow at approximately 9%, 13%, and 12% compound annual growth rates (CAGRs), respectively, supported by new product launches. The company is also expected to deliver healthy average return on invested capital (ROICs) of around 35% or higher over FY26–28E.

ICICI Securities values HMIL at 25x price-to-earnings (P/E) on FY28E EPS to arrive at the target price of INR 2,150, reinforcing confidence in the company’s medium-term performance outlook. The coverage marks a significant assessment of HMIL’s strategic direction, product pipeline, and financial growth potential in a competitive automotive market.