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Hyundai Motor shares jump 6% even as Q2 net profit declines 24% YoY. Why Nomura, other brokerages remain bullish?

By Economic Times Markets · Published by Everything Blog

In short

The automaker experienced strong revenue growth driven by operational demand, though surging expenses weighed heavily on bottom-line margins. In response, analysts from Nomura and Motilal Oswal issued positive recommendations with upside price targets. Specifically, Nomura emphasized that an upcoming mass-market electric vehicle launch and export recovery will serve as major catalysts for financial expansion.

Key points

Nomura retained its Buy rating on the stock with a projected target price of Rs 2,442 per…: Nomura retained its Buy rating on the stock with a projected target price of Rs 2,442 per share.
Motilal Oswal established a target price of Rs 2,300 supported by strong advance bookings…: Motilal Oswal established a target price of Rs 2,300 supported by strong advance bookings for the Bayon.
The ramp-up of a third shift at the Pune manufacturing facility is positioned to bolster…: The ramp-up of a third shift at the Pune manufacturing facility is positioned to bolster future earnings growth.

Sources checked by our analysis pipeline: 1

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Hyundai Motor India shares jumped to Rs 1,973.80 apiece on NSE on Thursday morning following the Q2 earnings announcement. The company’s revenue from operations increased more than 18.5% YoY to Rs 20,696 crore, up from Rs 17,461 crore reported in the corresponding quarter of the previous financial year.

The automaker’s total expenses rose more than 24% YoY to Rs 19,302 crore during the quarter under review, with a sharp 29% jump in cost of materials to Rs 15,731 crore. EBITDA fell nearly 19% YoY to Rs 1,975 crore, while EBITDA margin reduced to 9.5% in Q2 FY27 from 13.9% in Q2 FY26.

Also read | Hyundai Motor India's Q2 profit falls 24% as commodity costs blunt tax-cut boost to demand

Nomura on Hyundai Motor share price

Nomura maintained its ‘Buy’ rating on Hyundai Motor India shares but reduced its target price to Rs 2,442 apiece from Rs 2,498 apiece. The latest target price implies nearly 31% upside potential from the previous close.The international brokerage said the company’s new model cycle could drive potential…

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Key Points

Nomura retained its Buy rating on the stock with a projected target price of Rs 2,442 per…: Nomura retained its Buy rating on the stock with a projected target price of Rs 2,442 per share.
Motilal Oswal established a target price of Rs 2,300 supported by strong advance bookings…: Motilal Oswal established a target price of Rs 2,300 supported by strong advance bookings for the Bayon.
The ramp-up of a third shift at the Pune manufacturing facility is positioned to bolster…: The ramp-up of a third shift at the Pune manufacturing facility is positioned to bolster future earnings growth.

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In short

Key Points

Nomura retained its Buy rating on the stock with a projected target price of Rs 2,442 per…: Nomura retained its Buy rating on the stock with a projected target price of Rs 2,442 per share.
Motilal Oswal established a target price of Rs 2,300 supported by strong advance bookings…: Motilal Oswal established a target price of Rs 2,300 supported by strong advance bookings for the Bayon.
The ramp-up of a third shift at the Pune manufacturing facility is positioned to bolster…: The ramp-up of a third shift at the Pune manufacturing facility is positioned to bolster future earnings growth.

Topics

Finance

Was this summary useful?

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Hyundai Motor shares jump 6% even as Q2 net profit declines 24% YoY. Why Nomura, other brokerages remain bullish?

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