JAIPUR: Japanese brokerage Nomura has maintained its positive stance on Hyundai Motor India, reiterating a 'Buy' rating on the stock. The brokerage believes a fresh wave of model launches will give the company's sales momentum a significant lift in the coming quarters.
Momentum Expected to Pick Up in Second Half
According to Nomura, the company faced some headwinds in the first half of FY27 (April-September 2026), but the July-September quarter already showed signs of recovery. The brokerage expects volume growth to accelerate meaningfully between October 2026 and March 2027, driven by new launches.
Company management is confident of achieving 8-10% volume growth in FY27 across both domestic and export markets combined. Hyundai has also set a target of crossing 15% market share in India by FY30.
26 New Models in Five Years
The company's central strategy revolves around expanding its product portfolio. Hyundai Motor India is preparing to roll out 26 new models between FY26 and FY30. As part of this push, a mid-size ICE (petrol-diesel) SUV will launch during the FY27 festive season, followed by a compact electric SUV after the festive period.
Notably, the company has no plans to enter the hybrid segment over the next one to two years — though it does intend to bring 5-6 hybrid products to market by 2030. This suggests Hyundai's hybrid strategy is a medium-term play rather than an immediate priority.
Major Capacity Expansion at Pune Plant
Production capacity is also a key focus area. Per Nomura's report, the Pune plant will see an additional 150,000 units of capacity, taking Hyundai's total production capacity to 1.1 million units by calendar year 2030. Ahead of that, by October 2027, Pune plant capacity is set to rise from roughly 120,000 units to approximately 170,000 units.
Margins Expected to Improve Steadily
The profitability outlook also looks encouraging. Nomura estimates domestic volumes will grow at an 11% CAGR (compound annual growth rate) between FY26 and FY29. On EBITDA margins, the brokerage projects:
- FY27: 11.5%
- FY28: 12.7%
- FY29: 13.4%
Notably, company management has also maintained its own EBITDA margin guidance of 11-14% for FY27, which is broadly in line with Nomura's estimates.
Prices to Rise From September 1
In another key development for investors, Hyundai Motor India is set to raise prices across its entire vehicle lineup by up to 1% starting September 1, 2026. The extent of the price hike will vary depending on the specific model and variant.
Stock Market Performance
On August 24, Hyundai Motor India shares closed lower at ₹2,205 on the BSE. Despite the day's decline, the stock has gained around 19% over the past three months. The company's current market capitalization stands at over ₹1.79 lakh crore (₹1.79 trillion), and it is part of the BSE 200 index. The stock has a face value of ₹10.
This report is based on brokerage firm Nomura's analysis. Stock market investments are subject to market risks; consult a financial advisor before investing.