Target: 2,450CMP: ₹2,182Hyundai Motor India (HMIL) has maintained its guidance of 8-10 per cent volume growth and 11-14 per cent margin for FY27, despite multiple challenges in Q1. The company is getting product-aggressive, and the intensity is only likely to increase over the medium term. Two new nameplate additions for FY27 could bode well for HMIL’s growth. While these new launches could address whitespaces in its product portfolio, multiple full-model changes (FMCs), as envisaged in our product lifecycle mapping (initiation report), could help HMIL revive its franchise and market share (about 90 bps gain over FY26-28E).Ramp-up of capacities, price hikes and cost-control initiatives could support margin recovery hereon (down 410 bps y-o-y in Q1). Outlook for exports also remains strong, led by order backlogs and geographical diversification.The management indicated that the situation has improved and the build-up of order backlog from the West Asia and healthy traction (for Venue, Verna and Exter) in geographies like Central & South Africa (CSA) and LATAM/Mexico could drive growth going ahead.Maintain BUY with a target price of ₹2,450 (vs ₹2,475) based on 25x Sep’28E EPS.Downside risks: Delays in product interventions; Geopolitical uncertainties impacting HMIL’s exports and overall volume growth; and further increase in commodity costs and inability to take price hikes due to competitive intensity.Published on July 31, 2026