Hyundai Motor shares rally 3% as Goldman Sachs initiates coverage with buy rating- Grow Mudra

Hyundai Motor shares rally 3% as Goldman Sachs initiates coverage with buy rating

12 Aug , 2025 By : Debdeep Gupta

Shares of Hyundai Motor India Ltd. gained as much as 3 percent to Rs 2,222 in morning deals on August 12, extending gains for a second consecutive session after Goldman Sachs initiated coverage with a buy recommendation, citing positive factors for growth.

The international brokerage has set a price target of Rs 2,600 per share, implying an upside potential of 21 percent from the last close on the NSE. Goldman Sachs stated that the company has a strong positioning to outpace its peers, particularly in FY27–FY28.

The brokerage expects growth to be driven by successful EV models, market share gains in emerging markets, and upcoming product launches, which could lift market share by 120 basis points between FY25 and FY28.

Hyundai is projected to post over 8 percent volume CAGR over the next three years, compared to the domestic car industry’s 5.3 percent. While near-term startup costs are anticipated, Goldman Sachs believes they will be offset by an improved SUV and export mix, with the company also well-placed to benefit from a potential domestic car market upcycle in FY27.

In the first quarter, Hyundai Motor India reported an 8.08 percent year-on-year drop in consolidated net profit to Rs 1,369.23 crore, weighed down by weak domestic sales. In the year-ago period, net profit stood at Rs 1,489.65 crore.

Revenue from operations declined 5.37 percent to Rs 16,412.87 crore from Rs 17,344.23 crore in Q1 FY25. EBITDA fell 6.63 percent year-on-year to Rs 2,185.2 crore, while the operating margin narrowed by 20 basis points to 13.3 percent.

Domestic volumes contracted 11.5 percent to 1,32,259 units, but exports grew 13 percent to 48,140 units, partially cushioning the impact. Overall volumes slipped 6.1 percent to 1,80,399 units.

The Creta remained Hyundai’s top-selling SUV in the quarter with 47,662 units, followed by the Venue at 22,331 units and the Exter at 17,188 units. The company’s portfolio includes 12 ICE models — such as the Grand i10 Nios, Verna, Creta and Alcazar — and two EVs, the Creta Electric and Ioniq 5.

At about 9:40 am, shares of the company were trading at Rs 2,196, higher by 2.1 percent from the last close on the NSE. Hyundai Motor India shares have risen nearly 20 percent since the beginning of the year.