Hyundai Motor Q2 Results Review - Weak Demand, High Discounts Dent Performance: Motilal Oswal

Motilal Oswal Report

While FY25 is likely to be a moderate year for passenger vehicles in India and consequently for Hyundai Motors India Ltd., we project the company to report an 8% volume compound annual growth rate over the next two years. Following a moderation in FY25E earnings, we expect Hyundai Motors to post 14% earnings CAGR over FY25-27E.

When comparing Hyundai Motors with Maruti Suzuki India Ltd., which is its closest peer, we believe that while both OEMs are very close in competency and future growth potential, we can ascribe a slight premium to Hyundai Motors over Maruti Suzuki given:

1. Hyundai Motor Company’s technological prowess in emerging technologies that can be customized to meet Indian customer requirements as needed;

2. superior financial metrics;

3. a relatively premium brand perception; and

4. better alignment with industry trends.

We hence assign a 27x Sep’26E PER multiple to Hyundai Motors, relative to our target multiple of 26 times currently assigned to Maruti Suzuki. Therefore, we arrive at our target price of Rs 2,235 for Hyundai Motors, and reiterate our Buy rating on the stock.

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