Key Points

The data compiled by domestic brokerage InCred Equities has maintained its "Reduce" rating on the stock with a target price of Rs 2,023 per share, much lower than the previous close of Rs 2,737.

The brokerage said the recent GST tweak announced by the government is unlikely to significantly boost Hyundai's sales.

"High revenue dependence on large SUVs, exports, and parts and spares (70 per cent) will limit the revenue benefit from GST cut-led car demand revival," noted Pramod Amthe of InCred Equities.

Hyundai, the second-largest carmaker in India, has already been under pressure on the sales front.

The company reported a 4.23 per cent decline in total sales in August, selling 60,501 units compared to 63,175 units a year ago.

Domestic sales dropped to 44,001 units from 49,525 units in August 2024. However, exports provided some relief, rising 21 per cent year-on-year (YoY) to 16,500 units.

Tarun Garg, Whole-time Director and COO of Hyundai Motor India, recently said the company's strategy remains focused on strengthening India as Hyundai's largest export hub outside South Korea.

Between January and August 2025, Hyundai exported 1,18,840 units, underlining its growing role as a global manufacturing base.

While Hyundai continues to expand its global footprint and align with the government's 'Make in India' and 'Atmanirbhar Bharat' initiatives, analysts believe the near-term stock performance may face challenges.

InCred's caution comes at a time when investors are watching how carmakers respond to changing tax structures and shifting consumer demand.

Meanwhile, the carmaker reported an 8 per cent year-on-year (YoY) drop in its consolidated net profit for the first quarter ended June 30 (Q1 FY26).

The company posted a profit of Rs 1,369.23 crore, compared to Rs 1,489.65 crore in the same period previous year (Q1 FY25).

- IANS