Shares of the leading auto player Hyundai Motor India (HMIL) in Monday's trade (January 13, 2025) fell over 2 per cent to the day's low price of Rs 1,746 apiece on the BSE even as global brokerages sounded bullish on the stock and initiated their coverage on the same.

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At around 12:56 pm, Hyundai Motor shares were down 0.8 per cent or Rs 14.25 at Rs 1,772.70.

Hong Kong-based global brokerage CLSA has initiated its coverage on the leading passenger vehicle (PV) player with an 'outperform' rating and the target price pegged at Rs 2,155, implying potential gains of nearly 21 per cent.

The brokerage mentions that the company continues to focus on aspirational consumers with a diversified & affordable PV portfolio, comprising a 63 per cent UV  or utility vehicle mix. It added that capacity expansion from the company's Talegaon plant is expected in FY27.

Reportedly the company acquired General Motors India's Talegaon facility in Maharashtra in January last year. Furthermore, the company was to invest Rs 6,000 crore in the state as per the South Korean carmaker.

CLSA underscored that HMIL is aiming at sustaining 13 per cent Earnings Before Interest, Taxes, Depreciation, and Amortization or EBITDA margins even though market continues to pose challenges fot the automobile company.

The brokerage projects 13 per cent earnings CAGR over the period between FY25-FY27. Also, it pointed out that a few of the major launches by the company are lined up for fiscal year 2025-26.

Another major trigger as visualised by the global brokerage is that the company's loss of market share is set to end based on unit economics & successful UV portfolio.

HMIL is one of the few foreign carmakers to survive domestic market competition for over two decades, outlines CLSA.

Meanwhile, HSBC has also initiated its coverage on the stock with a buy rating and the target pegged at Rs 2,200, implying potential gains of over 23 per cent.

Hyundai Motor share price performance 

Since its listing on October 22, 2024, the stock of Hyundai has corrected as much as 9 per cent over the IPO issue price of Rs 1,960.