Hyundai Motor India shares gain 5% despite profit slump; Why brokerages remain bullish | Check target prices
Hyundai Motor India shares jumped over 5% on Thursday, 29 October, following the automaker’s Q2 FY27 results, despite a year-on-year decline in quarterly profit due to elevated input costs.
The company reported a 23.9% year-on-year drop in consolidated net profit to ₹1,196.16 crore for the quarter ended September, compared with ₹1,572.25 crore in the corresponding period last year.
However, Hyundai Motor India Ltd (HMIL) recorded its highest-ever quarterly sales of 2,19,072 units during the quarter, marking growth of 15% year-on-year and 23% sequentially. Revenue from operations rose to ₹20,696.05 crore in Q2 FY27 from ₹17,460.82 crore a year earlier, according to a regulatory filing.
Total expenses increased to ₹19,302.18 crore from ₹15,566.06 crore in the year-ago quarter, driven by higher material costs, which weighed on profitability.
Commenting on the performance, Tarun Garg, Managing Director and Chief Executive Officer of HMIL, said Q2 FY27 was a milestone quarter for the company, with record sales volumes and quarterly revenue crossing ₹20,000 crore for the first time since its inception. However, he noted that elevated commodity costs had affected profitability.
Looking ahead, Garg said the company expects momentum to accelerate in the second half of FY27. He added that the launch of the Bayon marks the beginning of Hyundai’s product cycle, while the company is preparing to introduce a dedicated mass-market electric vehicle in Q4 FY27.
Motilal Oswal Financial Services reiterated its ‘Buy’ rating on Hyundai Motor India, with a target price of ₹2,300, implying an upside of around 23% from the current market price of ₹1,875. The brokerage expects the automaker to deliver an earnings compound annual growth rate (CAGR) of around 16% over FY26–FY28.
It believes Hyundai Motor India is well-positioned to benefit from the premiumisation trend in the domestic market, supported by its portfolio mix skewed towards SUVs. At 28.6 times and 20.7 times its estimated FY27 and FY28 earnings, respectively, the stock appears attractively valued, according to the brokerage, which has valued the company at 26 times its FY28 estimated earnings.
Nuvama Institutional Equities retained its ‘Buy’ rating on Hyundai Motor India with an unchanged target price of ₹2,500 per share. The brokerage noted that the company plans to launch seven new nameplates by FY30, including the recently launched Bayon SUV and a compact electric SUV expected in February 2027.
New product launches, supported by capacity expansion, are expected to drive revenue and EBITDA CAGRs of 14% and 13%, respectively, over FY26–FY29. Nuvama also expects the company to deliver a mean return on invested capital (RoIC) of around 35%. Its target price is based on 30 times the estimated core earnings per share for September 2028, plus cash of approximately ₹100 per share.
Elara Securities maintained its ‘Buy’ rating on Hyundai Motor India but revised its target price to ₹2,400 from its earlier estimate, implying an upside of around 29% from the reference market price of ₹1,867 as of 28 October 2026.
The brokerage said the success of the Bayon launch would be crucial and factored in 11–12% growth in FY28, above the industry’s expected growth. It believes Hyundai’s market share and margins may have bottomed out in the first half of FY27, and expects EBITDA to grow around 34% year-on-year in the second half on a low base.
While commodity inflation remains a near-term concern, Elara expects an improving product mix and operating leverage to support an earnings recovery. Its revised target price is based on 24 times December 2028 estimated earnings per share.
Hyundai Motor India share price today opened at ₹1,910 apiece on the BSE, the stock touched an intraday high of ₹1,972.90 apiece, and an intraday low of ₹1,893 per share.
Deepesh Sarawagi, Technical Research Analyst at Choice Broking, said Hyundai Motor India shares were trading around ₹1,937 after declining sharply from recent highs near ₹2,280. The stock has recently rebounded from the ₹1,820– ₹1,900 demand zone, indicating buying interest at lower levels. However, it continues to trade below its 20-day, 50-day, 100-day and 200-day exponential moving averages (EMAs), suggesting that the broader trend remains weak.
Sarawagi identified ₹1,950– ₹2,020 as the immediate resistance zone, followed by ₹2,040– ₹2,050, where the longer-term EMAs are positioned. The relative strength index (RSI) has recovered to around 44 after nearing oversold territory, indicating some improvement in momentum. He said a sustained move above the immediate resistance could support further recovery, while the ₹1,820– ₹1,850 range remains a crucial support zone. A breakdown below this level could trigger further downside.
Gaurav Arora, Head of Research at SAHI, said Hyundai Motor India has witnessed buying interest over the past few sessions but is facing resistance near its 20-day EMA. The formation of a long upper wick suggests some rejection at current levels. He pegged immediate support at ₹1,855 and resistance at ₹2,020.
Arora added that the recent price action points to the stock finding stability rather than signalling a confirmed trend reversal, as the broader technical outlook remains weak.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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