Hyundai Motor India (HYUN.NS): June‘26 Sales: Domestic Volumes down 10% YoY; Exports Down 31% YoY Due to Temporary Disruptions

Research evidence excerpt

Hyundai Motor India (HYUN.NS): June‘26 Sales: Domestic Volumes down 10% YoY; Exports Down 31% YoY Due to Temporary Disruptions

Hyundai Motor India (HYUN.NS)

01 July 2026 Citi Research

Hyundai Motor India

Valuation

Our target price for Hyundai Motor India stock is Rs2,450, based on 24xSep’27E EV/EBIT. Our target multiple for HMIL is at

around a 15% discount to the target EV/EBIT multiple of 28x we use to value Maruti Suzuki, the industry leader (the Maruti

target multiple is, in turn, based on a 20% premium to Maruti’s own trailing five-year average EV/EBIT trading multiple). While

acknowledging that HMIL has a more premium product profile and a strong parentage, we think that the discount to Maruti is

justified due to: 1) Maruti’s much higher market share and greater scale of manufacturing, and 2) proven track record of Maruti’s

parent company (Suzuki) in executing India-focused strategies.

Risks

Generally, recently listed companies are assigned a High Risk rating by our Quant risk model owing to their limited trading

history. In that context, HMIL is rated High Risk as per our Quant risk model. However, HMIL has a healthy balance sheet and

cash flow generation, as well as strong parentage, and in that context we do not apply a High Risk rating.

Key downside risks that could impede the shares from reaching our target price include: 1) intense competition from domestic

and foreign automobile manufacturers resulting in a risk of decline in market share; 2) risks due to related-party transactions

and reliance on group affiliates including royalty to HMC (parent) and sourcing of parts and revenue from related parties. HMIL

is also dependent on the group to provide parts to dealers and distributors for after-sale services; 3) changing customer