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3mo ago

Hyundai Motor India Faces Mixed Broker Sentiment Amid Q4 Revenue Beat and Margin Pressures

While Hyundai reports strong Q4 FY25 revenue and EBITDA growth, brokerages are divided on near-term outlook due to margin concerns and cost pressures from upcoming facilities.

MSCI Index Rejig: Hyundai Motor Joins, This Adani Group Stock Faces Exit | Image: Shutterstock
JT Park, Executive Director (Sales, Marketing and Service) - Hyundai Motor India Limited (HMIL), Mr. Tarun Garg, Whole-time Director & Chief Operating Officer - HMIL, and Mr. Unsoo Kim, Managing Director - HMIL, at the launch of the Hyundai CRETA Electric at Bharat Mobility Global Expo 2025 in New Delhi. | Image: HMIL
Hyundai Motor shares: Nirmal Bang downgrades stock, other brokers increase target prices

Overview

  • Hyundai Motor India posted Q4 FY25 revenue of Rs 179.4 billion, with a 285 basis point improvement in EBITDA margins to 14.1%, but net profit declined 4% year-on-year to Rs 16.1 billion.
  • Brokerages are divided: Emkay Global retains an 'Add' rating with a target of Rs 1,750, citing margin pressures, while Nirmal Bang downgrades to 'Hold' after a 10% stock rally, setting a target of Rs 1,984.
  • Kotak, JM Financial, and Motilal Oswal maintain 'Buy' ratings, raising target prices to Rs 2,050–2,137, citing Hyundai's strong product pipeline, premiumization, and export growth potential.
  • Hyundai plans to launch 26 new models by FY30, including six EVs and hybrids, with Rs 7,000 crore capex allocated for FY26 to support a new Pune plant and product development.
  • Near-term challenges include muted domestic passenger vehicle demand, projected 1–2% volume growth for FY26, and cost pressures from pre-operational expenses and higher depreciation at the Talegaon facility.