Could Hyundai Motor India Shares Decline by 26%?
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Synopsis
Hyundai Motor India Limited's shares are projected to plummet by over 26% according to InCred Equities. This article delves into the factors influencing this forecast, including sales performance and the impact of recent government policy changes, offering insights for investors and industry watchers.
Key Takeaways
- Hyundai Motor India shares may drop by 26%.
- InCred Equities sets a target price of Rs 2,023.
- High SUV revenue dependence limits benefits from GST cuts.
- Domestic sales dropped to 44,001 units in August.
- Exports showed a 21% YoY increase.
New Delhi, Sep 26 (NationPress) Shares of Hyundai Motor India Limited may experience a drastic decline of over 26 percent from their current valuations, as indicated by an emerging report.
The analysis conducted by the local brokerage firm InCred Equities has upheld its ‘Reduce’ rating for the stock, projecting a target price of Rs 2,023 per share, significantly lower than the preceding close of Rs 2,737.
The brokerage firm asserted that the recent modifications in GST announced by the government are not expected to notably enhance Hyundai’s sales.
According to Pramod Amthe from InCred Equities, “The high dependency on substantial SUVs, exports, and parts and spares (70 percent) will restrict the revenue boost from the GST cut-driven revival in car demand.”
Hyundai, recognized as the second-largest automobile manufacturer in India, is already facing challenges in sales.
In August, the company reported a 4.23 percent drop in total sales, with 60,501 units sold compared to 63,175 units in the same month last year.
Domestic sales fell to 44,001 units from 49,525 units in August 2024. Nevertheless, exports offered some respite, with a 21 percent year-on-year (YoY) increase to 16,500 units.
Tarun Garg, Whole-time Director and COO of Hyundai Motor India, recently articulated that the company’s strategy remains centered on bolstering India as Hyundai’s primary export hub outside South Korea.
From January to August 2025, Hyundai exported 1,18,840 units, highlighting its expanding role as a global manufacturing center.
While Hyundai continues to broaden its international presence and align with the government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, analysts foresee potential hurdles for the stock’s performance in the near term.
InCred’s cautious outlook emerges at a time when investors are closely monitoring how automobile manufacturers adapt to evolving tax frameworks and shifting consumer preferences.
Additionally, the automaker noted an 8 percent year-on-year (YoY) decrease in its consolidated net profit for the first quarter ending June 30 (Q1 FY26).
The company reported a profit of Rs 1,369.23 crore, in contrast to Rs 1,489.65 crore in the corresponding period last year (Q1 FY25).
Point of View
Hyundai Motor India's anticipated share decline presents a critical junction for investors. As the second-largest carmaker in India, its challenges reflect broader industry trends influenced by tax regulations and consumer demand shifts. Navigating this landscape requires careful consideration and vigilance.
NationPress
26/09/2025
Frequently Asked Questions
What is the projected decline in Hyundai Motor India shares?
According to InCred Equities, Hyundai Motor India shares may decline by over 26% from their current levels.
What is the target price set by InCred Equities?
InCred Equities has set a target price of Rs 2,023 per share for Hyundai Motor India.
What factors are contributing to the expected decline?
The high revenue dependence on large SUVs and limited benefits from the recent GST cut are key factors contributing to the expected decline.
How did Hyundai perform in August sales?
Hyundai reported a 4.23% decline in total sales in August, with domestic sales dropping to 44,001 units.
What is Hyundai's export status?
Hyundai's exports increased by 21% YoY in August, totaling 16,500 units.
