The shares of Hyundai Motor India closed flat at INR 1,786.95 on the BSE in the previous trading session.Global brokerage firm CLSA has initiated coverage on the recently listed Hyundai Motor India with an "Outperform" rating and a target price of INR 2,155, predicting an upside potential of 20.5%, citing the automaker's strong growth prospects and strategic expansion plans.
Describing Hyundai’s positioning as ‘aspirational yet affordable’, the brokerage firm notes that while Hyundai is currently experiencing a period of low growth amid elevated utilization rates, the company's outlook remains promising.
A key catalyst for future growth is expected to be the newly added Talegaon plant, which should begin contributing significantly to capacity from FY27 onwards.
The note further highlights Hyundai's competitive advantages, particularly its superior unit economics and higher incremental return on capital employed (RoCE) compared to industry leader Maruti. This financial efficiency positions Hyundai well in the competitive Indian automotive market.
In a significant development for its electric vehicle strategy, Hyundai is also preparing to launch the e-Creta in the coming months.
CLSA views this as a strategic first step in the company's broader plan to develop an affordable EV portfolio, a move that aligns with the growing demand for electric vehicles in India. This could help Hyundai capture a larger share of this emerging market segment.
Hyundai Motor India stock performance
The shares of Hyundai Motor India were recently listed on the stock exchanges. They listed at a discount of 1.5% and have declined by 2.5% in the last one month. Even in the last 2 weeks, the stock traded flat with a negative bias, according to BSE Analytics.
The shares of Hyundai Motor India closed flat at INR 1,786.95 on the BSE in the previous trading session.
