Hyundai Motor India shares jump 4% as Goldman Sachs assigns buy rating

Shares of Hyundai Motor India surged over 4% on Tuesday after foreign brokerage Goldman Sachs initiated coverage on the auto stock with a ‘Buy’ rating. The auto heavyweight extended its gaining streak for the second straight session, rising nearly 6% in two days.

Early today, Hyundai Motor shares opened up by 0.88% at ₹2,171.05, after ending 1.52% higher at ₹2,171.05 in the previous session. In the first hour of trade so far, the stock gained as much as 4% to hit a high of ₹2,239.70, while its market capitalisation climbed to ₹1.81 lakh crore.

Hyundai Motor India shares are inching close to its all-time high of ₹2,265.05 touched on July 1, 2025. The counter slipped to its 52-week low of ₹1,542.95 on April 7, 2025.

The stock, which made its debut on October 22, 2024, is trading 14.27% higher than its initial public offering (IPO) price of ₹1,960. It has gained nearly 24% in the calendar year 2025, while it added 23% in six months and nearly 4% in a month.

Goldman Sachs assigned the ‘Buy’ rating saying the Korean auto major has a strong positioning to outpace its peers, particularly in FY27–FY28.

The U.S.-based rating agency expects Hyundai India to outperform the domestic car industry, driven by a strong pipeline of electric vehicles (EVs), growing presence in export markets, and new product launches. The company is anticipated to post over 8% volume CAGR between FY25 and FY28, outpacing the industry’s projected 5.3%.

For the first quarter ended June 30, 2025, Hyundai Motor India posted a consolidated net profit of ₹1,369.23 crore, down 8.08% year-on-year (YoY) from ₹1,489.65 crore in the same period last year, impacted by weak domestic sales.

Revenue from operations slipped 5.37% to ₹16,412.87 crore from ₹17,344.23 crore in Q1 FY25. This was impacted by a dual impact of lower volumes, down 6% YoY and 6% QoQ to 180.4k units, and softer realisations, which fell 3% QoQ due to higher discounts (3.4% of domestic average selling price versus 2% in Q4 FY25).

On the operating front, Ebitda declined 6.63% YoY to ₹2,185.2 crore, while the margin contracted by 20 basis points to 13.3%.

“We continued our stated strategy of 'quality of growth' in the first quarter of FY 2026 with balance between domestic & exports, market share and profitability. This strategy helped us to sustain a strong Ebitda margin of 13.3% during the quarter, despite a tough macro-economic environment,” said Unsoo Kim, managing director, HMIL.

Going ahead, the company anticipates a gradual recovery in domestic demand sentiments, driven by the onset of monsoon & festive season, coupled with government policy measures. “On the exports front, we are confident of maintaining a positive momentum, in line with our growth commitments,” Kim said.

In July 2025, Hyundai Motor India recorded total sales of 60,073 units, comprising 43,973 units in the domestic market and 16,100 units in exports.

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