Shares of Hyundai Motor India Ltd surged 7 percent on Friday, making it the top gainer on the Nifty 100, as investors cheered the automaker's fiscal first quarter earnings and upbeat management commentary. Brokerages maintained bullish views on the stock.

Hyundai Motor India stock rose as much as 7 percent to Rs 2,160 in morning trade. It had gained 1.3 percent in the previous session after the company reported its June-quarter results. Despite the recent rally, the stock remains down 6.8 percent so far in 2026, broadly in line with the 7 percent decline in the Nifty 50. The company commands a market capitalisation of more than Rs 1.75 lakh crore.

Nomura maintained its 'Buy' rating on Hyundai Motor India stock with a target price of Rs 2,498, implying an upside of around 24 percent from Thursday's close. The brokerage said Hyundai's first-quarter EBITDA margin was in line with expectations. It expects two new model launches in the second half of FY27 to drive outperformance.

Nomura said the company's growth will outpace the industry from H2FY27. It added that the stock's valuation of 23 times FY28 estimated earnings remains attractive given its projected 26 percent earnings CAGR over FY27-29. The brokerage also sees the potential for mid-teens earnings growth beyond FY29.

CLSA reiterated its 'Outperform' rating with a target price of Rs 2,300. It said Hyundai delivered an in-line EBITDA margin of 9.3 percent, while adjusted gross margin declined 40 basis points sequentially. The brokerage said that cumulative price hikes, moderation in discounts to 2.8 percent of revenue from 3.4 percent a year earlier, and cost reduction measures helped the company manage gross margins despite commodity cost pressures. CLSA highlighted management's guidance of 8-10 percent domestic volume growth in FY27, supported by capacity ramp-up and new launches, adding that the company has reiterated its margin guidance despite ongoing commodity headwinds.

Motilal Oswal Financial Services (MOSL) also retained its 'Buy' rating on Hyundai Motor India with a target price of Rs 2,334. The brokerage said June-quarter net profit exceeded its estimates, aided by higher other income and lower depreciation, although the EBITDA margin of 9.3 percent was  impacted by commodity inflation and lower volumes. It expects the company to deliver a 9 percent volume CAGR and 16 percent earnings CAGR over FY26-28.

Hyundai Motor India had reported a 35 percent year-on-year decline in consolidated net profit for the June quarter, while revenue was largely flat. The company said temporary production disruptions and lower exports due to the ongoing West Asia conflict weighed on volumes during the quarter. However, the management expects growth to recover from the second quarter, backed by the normalisation of production, healthy demand and an upcoming product pipeline.