Hyundai Motor India Limited

Consumer Cyclical — Auto Manufacturers · NSE

₹1,987.00+₹2.00 (+0.10%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by high debt relative to equity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Hyundai Motor India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hyundai Motor India Limited engages in the manufacture and sale of passenger vehicles and parts in India and internationally. The company offers passenger vehicle models across sedans, hatchbacks, sports-utility vehicles (SUVs) and electric vehicles (EVs).

IndustryAuto Manufacturers

SectorConsumer Cyclical

Employees6,262

Annual revenue₹69,391 Cr

How does it make money?

Turns over ₹69,391 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 6,262 employees supports ₹11.08 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11.08 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TATA MOTORS LIMITED, TATA MOTORS PASS VEH LTD, MAHINDRA & MAHINDRA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 32.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 27.1% against a peer median of 19.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE19.7%

What is the outlook?

26 analysts covering the stock expect revenue to grow about 17.8% and earnings to grow about 22.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.8%

Est. earnings growth+22.5%

Analysts26

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +17% while net margin moved -2% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+17%

Margin effect-2%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.5% — barely ahead of inflation
✗ Profit CAGR of only 4.9%
✗ Latest-year revenue growth of -0.5% is below the longer-term trend — momentum is fading
✗ Profit fell 35.1% in the latest year

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

39/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

32.6x

2Y Median

29.7x

26 monthly readings · mean 28.8x · range 22.5x–37.2x

Sector Median

25.2x

median of 3 sector peers

🟡Currently trading close to its 2y median of 29.7x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 29% above the peer median of 25.2x.

vs. its own history

Fair

29.7x median over 26 months · +10%

vs. sector peers

Expensive

25.2x median of 3 peers · +29%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.1x

PEG

6.69

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 23.5% to 27.1%.
Return on capital is rising
ROCE has improved from 28.7% to 32.6%.
High return on capital employed
ROCE of 32.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 5.48x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 32.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 5.48x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 29% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 5.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 12%✓ 13.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.5% CAGR
Latest reported year was -0.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹3,055 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 30%✓ 32.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹1.61 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

32.6x

Fair

Fairly valued against the generic band

P/B Ratio

8.07x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹60.93

Profitable

Profitable on a per-share basis

ROE

27.1%

Strong

Strong capital efficiency

ROCE

32.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.48x

High

High leverage

Revenue Growth (YoY)

-0.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-35.1%

Falling

Profits are shrinking

Dividend Yield

1.06%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹3,055 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

21.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.8%

Average

Average margins

Net Margin

7.0%

Average

Average bottom-line conversion

Current Ratio

1.56

Comfortable

Healthy short-term liquidity

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2028.1 / 2132.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹59,103 Cr	₹68,590 Cr	₹67,942 Cr	₹69,391 Cr	+5.5%
EBITDA	₹8,683 Cr	₹10,598 Cr	₹9,825 Cr	₹9,544 Cr	+3.2%
EBITDA Margin	14.7%	15.5%	14.5%	13.8%	—
PAT (Net Profit)	₹4,709 Cr	₹6,060 Cr	₹5,640 Cr	₹5,432 Cr	+4.9%
EPS	₹57.96	₹74.58	₹69.41	₹66.85	+4.9%
ROE	23.5%	56.8%	34.6%	27.1%	—
ROCE	28.7%	62.9%	41.0%	32.6%	—
Total Debt	₹1,189 Cr	₹833 Cr	₹850 Cr	₹1,098 Cr	-2.6%
Free Cash Flow	₹4,303 Cr	₹6,006 Cr	-₹962 Cr	₹3,055 Cr	-10.8%

🟢 Revenue has grown at 5.5% a year over 3 years.

🟢 EBITDA has grown at 3.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 13.8% over 3 years.

🟢 PAT (Net Profit) has grown at 4.9% a year over 3 years.

🟢 EPS has grown at 4.9% a year over 3 years.

🟢 ROE has risen from 23.5% to 27.1% over 3 years (+3.7 pts).

🟢 ROCE has risen from 28.7% to 32.6% over 3 years (+3.9 pts).

🟢 Total Debt has shrunk at 2.6% a year over 3 years.

🔴 Free Cash Flow has shrunk at 10.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹34,404 Cr

Total Liabilities

₹14,389 Cr

Cash & Equivalents

₹8,712 Cr

Operating Cash Flow

₹7,321 Cr

Capex

-₹4,266 Cr

Shareholding (proxy)

Institutional Holding

13.2%

Insider Holding

82.5%

Corporate Actions

Dividend Rate

₹21

Ex-Dividend Date

05 Aug 2026

Analyst Consensus

Recommendations

24 Buy · 2 Hold · 2 Sell

Target Price (Mean)

₹2,316.39

+16.6% vs CMP

Target Range

₹1,725 – ₹2,600

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TATA MOTORS LIMITED	37.1x	32.8%
TATA MOTORS PASS VEH LTD	—	-3.0%
MAHINDRA & MAHINDRA LTD	17.8x	19.7%

Recent News

2 mixed4 general

Hyundai Motor India shares turn positive after reporting highest ever monthly sales in September

Upstox, 30 Sept

Hyundai Motor India shares jump over 2% as parent announces $15.5 billion investment plan through 2032

Moneycontrol.com, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Hyundai Motor India Share Price falls 2.46% | Valuation view

Univest, 07 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Stocks in news: Adani Enterprises, Hyundai Motor India, BHEL, BEL, Groww, Tata Elxsi and RailTel

The Economic Times, 14 Oct

Hyundai Motor India shares rebound after 4-day slide: What’s driving the stock price rise? Buy or book profits?

Livemint, 25 Sept

Stocks to Watch Today, Thursday, October 15, 2026: Reliance Industries, MRPL, Om Power Transmission, Bajaj Consumer Care, Hyundai Motor India

HDFC Sky, 15 Oct

Watch Items

Revenue growth is negative (-0.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingRisk

WeakGrowth · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑