On Friday, CLSA initiated coverage on Hyundai Motor (OTC:HYMTF) India (HYUNDAI:IN) with an Outperform rating and set a price target of INR 2,155.00. The research firm cited Hyundai's diverse and affordable passenger vehicle (PV) lineup, specifically noting its 63% utility vehicle (UV) mix, as a key strength in targeting the aspirational consumer segment. CLSA highlighted Hyundai Motor India's longevity in the competitive domestic market, where it has been a significant player for over two decades.
The firm's analysis suggests that Hyundai's upcoming major launches in fiscal year 2026, along with the added capacity from its new Talegaon plant, will be pivotal for the company's growth starting from fiscal year 2027. CLSA expects that Hyundai's market share loss will halt as the new plant becomes operational. The upcoming launch of the e-Creta is seen as an initial step towards establishing an affordable electric vehicle (EV) portfolio for Hyundai.
According to CLSA, Hyundai Motor India exhibits superior unit economics compared to Maruti Suzuki India (NS:MRTI) Limited (MSIL), particularly in the successful UV segment. The firm's discounted cash flow (DCF) based price target reflects a valuation of 24 times the projected fiscal year 2027 earnings per share, which is consistent with the target valuation for market leader MSIL.
Despite the positive outlook on Hyundai, CLSA maintains Mahindra & Mahindra (NS:MAHM) (MM) as its top pick in the passenger vehicle sector. The firm's report on Hyundai Motor India underscores the company's potential to enhance its position in the market with strategic product launches and plant expansions.
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