Buy Hyundai Motor India; target of Rs 2300: Emkay Global Financial

Moneycontrol • 3 days ago

Original source

Key Investment Pillars

  • New Product Launches: Hyundai Motor India is launching new products, including the Bayon and an upcoming E-SUV, which are expected to strengthen its presence and drive growth.
  • Cost Reduction Measures: The company is implementing cost reduction measures, including Tamil Nadu incentives and higher capacity utilization, to improve margins.
  • Export Growth: Exports are expected to grow in high double digits in 2H, led by diversified market presence and multiple product actions.
  • Electric Vehicle Penetration: HMIL targets EV penetration in line with industry levels by FY28, supported by the upcoming new E-SUV in Jan-27.

Thesis Validation Checklist

  • Volume Growth: Monitor domestic volume growth, particularly in the 2H, to see if HMIL can achieve its guidance of 8-10% growth.
  • Margin Expansion: Track EBITDAM to see if HMIL can achieve its guidance of 11% in FY27, despite commodity pressures.
  • New Product Contributions: Monitor the contribution of new products, such as the Bayon and E-SUV, to overall sales and profitability.
  • Export Performance: Keep an eye on export growth, particularly in the 2H, to see if HMIL can achieve its guidance of high double-digit growth.