Emkay Global Financial has upgraded its 12-month target price for Hyundai Motor India to ₹2,600 from the previous ₹2,450, maintaining its 'Buy' rating with an implied upside of 16.8% from current market price. According to the latest research report, the brokerage believes the company is entering a comeback phase with India increasingly becoming a strategic global hub for Hyundai Motor Company. The target price represents a 6% increase from the previous recommendation, based on 26x September 2028 core price-to-earnings ratio. As per The Hindu BusinessLine, the current market price stands at ₹2,265, indicating significant upside potential for investors.
After facing a lean product phase over the past five years, releasing only 3 new models during FY21–26, Hyundai Motor India is accelerating its pipeline with 26 strategic product actions, including 7 new nameplates over the next five years. This rollout includes a localised mass-market compact E-SUV and a Bayon-based mid-size ICE-SUV, which are expected to fill key whitespace segments and help the company reclaim lost market share. The company's SUV mix has evolved significantly, accounting for 68% of domestic volume in FY26, compared to 52% in FY22, driving a premiumisation shift that combines with a diverse multi-powertrain portfolio and expanding export share to act as strong growth levers for Average Selling Prices.
The company is addressing its growth bottlenecks by expanding production capacity to 1.1 million units per annum by FY31, up from 909,000 units in FY26. This calibrated capacity increase will support future volume growth after the company's growth was restricted by limited capacity and sustained high utilisation consistently exceeding 90% over the past five years. Backed by a massive ₹45,000 crore investment over the next five years in AI, automation, and EV localisation, the company is targeting 90% localisation, up from 80% currently and 70% in FY20. This localisation drive significantly strengthens India's cost advantage and supply-chain resilience.
Hyundai Motor Company is shifting India's role from 'Make in India' to 'Create in India', with India expected to become the company's second biggest market globally by CY30/FY30, up from 4th position currently. The company's integration with Hyundai Motor Company's global operations is projected to make India the #2 market globally by CY30 compared to its current #4 position. Export volume share is targeted to rise to 30% within 5 years, up from 24.5% in FY26, to deepen integration with the company's global supply chain.
The share price of Hyundai Motor India has surged 2.33% in the last five trading sessions, with the stock delivering 13% returns in the past one month and 2% in the last six months. However, the stock has dropped 10% over the previous 12 months. Emkay Global projects robust financial performance with the company expected to achieve volume/revenue/EPS CAGR of 11%/15%/16% over FY26-29E, which represents 4-6% above street estimates. The brokerage expects Hyundai Motor India's market share to have bottomed out and anticipates recovery from September 2026 with the launch of the Bayon-based mid-size SUV, driving higher average selling prices through rising SUV mix, premiumization, and exports.
