Hyundai Motor jumps 5% in two days after Goldman Sachs initiates with 'Buy'

Goldman Sachs on Hyundai Motor India: Automobile major Hyundai Motor India’s share price extended its rally for a second straight session on Wednesday, August 13, 2025, climbing as much as 2.51 per cent intraday to touch ₹2,259.35 – just a few points shy of its 52-week high of ₹2,265.05. 

 

The Hyundai Motor India stock has now risen 4.98 per cent over two days, driven by strong investor sentiment following a bullish initiation report by global brokerage Goldman Sachs.  READ STOCK MARKET LIVE UPDATES TODAY 

The brokerage initiated coverage on Hyundai Motor India with a ‘Buy’ rating and set a 12-month target price of ₹2,600, signaling an upside potential of 20.8 per cent from current levels. In its report, Goldman Sachs analysts Chandramouli Muthiah, Kota Yuzawa, and Rishabh Rathi wrote, “We view Hyundai Motor India Limited (HMIL) as well positioned to outgrow the India car industry, driven by new SUV launches triggered by upcoming greenfield capacity additions.”

 

According to the analysts, Hyundai is set to benefit from a combination of upcoming high-volume model launches, a more favourable SUV and export mix, and its leverage to a potential domestic car market recovery expected by FY27. 

 

While the broader market remains cautious on near-term volume growth, Goldman Sachs’ analysts believe Hyundai will start outpacing competitors more visibly from FY27 to FY28, supported by improving consumer sentiment and structural demand catalysts such as the 8th Pay Commission.

 

The report also forecasts strong financial performance ahead, with earnings per share expected to grow by 10 per cent in FY26, 15 per cent in FY27, and 27 per cent in FY28. Ebitda margins are projected to rise to 13.8 per cent in FY28 from 12.9 per cent in FY25, while return on equity is forecast to climb from 20 per cent in FY23 to 31 per cent by FY28. The brokerage expects Hyundai to outperform the broader Indian auto sector, with a projected 8 per cent three-year volume CAGR, compared to 5.3 per cent for the overall industry.  ALSO READ | Archean Chemical surges 12%, stock hits highest level in CY25; here's why 

Valuations, though slightly elevated, remain justified in Goldman Sachs’ view, with Hyundai Motor India trading at 27x forward P/E – one standard deviation above its historical average, and about 10 per cent higher than Maruti Suzuki. 

 

Key catalysts include Hyundai’s first-ever Investor Day in October 2025, a slew of upcoming launches in the MPV and SUV segments, and a potential demand inflection in the second half of FY26. 

 

However, risks such as concentration in Creta and Venue models, rising competition in the SUV segment, market share pressure from KIA, and environmental compliance concerns remain on the radar.