First Read Hyundai Motor India Q1FY27 marks the trough; recovery expected

研报英文原文证据摘录

First Read Hyundai Motor India Q1FY27 marks the trough; recovery expected

YTD. UBS Cons.

Gross margins contracted by 240bps YoY, primarily due to commodity cost pressures, 03/26E 66.85 66.85

which had an estimated impact of ~200bps. Employee costs increased 20% YoY, largely 03/27E 70.40 69.31

reflecting the commencement of the Pune plant and annual salary revisions, while other 03/28E 86.17 87.83

operating expenses rose 11% YoY. Consequently, EBITDA declined 31% YoY, with

EBITDA margins at 9.3%, broadly in line with our estimate of 9.5%. Pramod Kumar

Analyst

pramod.kumar@ubs.com

Key earnings call takeaways +91-22-6155 6063

1) Management expects industry growth to moderate in H2FY27 due to a higher base,

Vedant Kshatriya

while maintaining its full-year industry growth outlook of ~8-10%; the company

Associate Analyst

expects to outperform the broader industry; 2) The company plans to launch its new vedant.kshatriya@ubs.com

mid-size SUV during the festive season, which is expected to be a key growth driver in +91-22-6155 6008

H2FY27; 3) Hyundai will commence the third shift at its Pune plant from Oct'26, nearly

two years ahead of the original schedule; 4) The management expects Venue volumes to

at least double over time, supported by enhanced production capacity and wider export

reach; 5) Management remains confident of exports rebounding sharply supported by

normalization in Middle East and growing traction in Central and South America; 6) The

upcoming EV is being developed with a strong focus on localization, with management

targeting PLI eligibility from day one of launch.

Valuation: Maintain Buy; PT raised to Rs2,420 from Rs2,380

We continue to value the company at 18x 1Y forward EV/EBITDA. Our PT is higher as we

roll forward our estimates to incorporate Q1FY29E