Hyundai Motor India shares can fall more than 26%, says incredible shares. This is why

Shares of Hyundai Motor India LTD could fall more than 26% compared to the current level, says Interior brokers of incredible shares, while retaining the reduction of the call on the counter. Analysts have assigned a target price of RS 2,023 per share, considerably lower than the previous closure of RS 2,737 per share.

The brokerage is of the opinion that the recent GST adjustment of the government will have a limited impact on the growth of sales turnover. “High income dependence of large SUVs, exports and parts and spare parts (70%) will limit the income confirmation of GST-conducted car demand exchange,” said Pramod of incredible shares.

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“The high-toe growth in the last three years witnessed in exports (15% of Net Sales), Parts and Services (15%), and Large Sports Utility Vehicles or SUVS (40%) has reduced hyundai’s Dependence on new 18%. Low -Priced Compact Cars, Hyundai’s Sales Benefit, Will Be Limited Compared with Peers Like Maruti Suzuki and Tata Motors, the report is expected to extend the UnderPerformance in the Domestic Volume Growth. Of the industry with a 300-700 basic points, that can change, says Incred, adding that high overhead costs of the new factory are on the EBITDA margins until the plant reaches optimal capacity use.

In the area of ​​the valuation, the brokerage added that with the GST speed savings the affordability challenges for compact cars tackle, volume growth will have the priority over the growth of the value in the coming neighborhoods, where the participation of Hyundai will be limited. The sharp run-up in his share price recently made a forward p/e rating 26% higher compared to Maruti Suzuki. “Market dividers will be a key factor to check. The upward risk is the success of new product launches,” it added.

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Q1 Performance Snapshot

The company reported a decrease of 8% on an annual basis (JoJ) in consolidated net profit to RS 1,369.23 Crore, compared to RS 1,489.65 Crore in the same quarter of the previous financial year. In the meantime, the turnover fell 5.5% JoJ to RS 16,179.61 Crore, against RS 17,131.24 Crore in the period of the year ago.

ADDRIES PAT fell by 15.2% of RS 1,614.34 Crore in the quarter of FY25. The income from operations also fell 7.7% QoQ, against RS 17,527.25 Crore from March 31, 2025.

Around 12:20 pm the shares of the company acted on RS 2,683, with 2% compared to the last closure of the NSE. Hyundai Motor India shares have risen almost 60% in the last six months.

((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)