Korean automotive major Hyundai is celebrating its 30 years of operations in India and Goldman Sachs has now initiated coverage on the makers of Creta with a Buy rating. The share price of Hyundai Motor India is up 21% since its listing, but the Goldman Sachs price target of Rs 2,600 per share implies another 23% from current levels.
According to Goldman Sachs, one of India’s top three passenger car makers by market share- Hyundai Motor India is poised to “outgrow the Indian car industry, driven by new SUV launches triggered by upcoming greenfield capacity additions.”
Goldman Sachs view: How Hyundai stacks up Vs competition
The Goldman Sachs note on Hyundai indicates that the Indian car market is poised to reverse into an inflection phase over the next 1 year. While a lot of attention and column space is being devoted to the modest FY26 run rate thus far, Goldman Sachs pointed out that Hyundai may “outgrow peers more visibly over FY27 and FY28.”
Goldman Sachs on Hyundai: Improving growth trajectory in FY27
Successful models for emerging markets and gains in EM shares as compared to Kia are seen as the primary drivers. Goldman Sachs expects Hyundai to “benefit from upcoming new product launches which should support the 120 bps market share pick-up over FY25-FY28.
Moreover, the international brokerage house also added that Hyundai is set to “deliver 8% growth annually over 3-years in terms of volumes on a compounded basis.” The domestic car industry, in the same period, is expected to grow at 5.3% annually.
Additionally, Goldman Sachs said that the improving “SUV export mix to offset near-term startup costs.” They also “offer leverage to potential pickup in the domestic car market cycle FY27 onwards,” they added.
Goldman Sachs on Hyundai: Valuation Vs peers
As per Goldman Sachs forecast, the FY26 EPS growth is seen at 10%, while for FY27, they expect a 15% jump in EPS. The FY28 EPS is seen almost doubling to 27% in the next fiscal- FY28.
In terms of comparison of peer valuation Hyundai’s valuation at 27x fwd P/E, is up 10% Vs Maruti Suzuki). The inaugural investor day in October, 2025 coupled with high-volume launches in MPV/SUV segments is expected to drive the earnings premium.
Moreover, demand is expected to reach an inflection point towards the second half of FY26, and the “consumer preference shift towards feature-rich vehicles” is expected to power it.
Goldman Sachs on Hyundai: Risk factors
That said, Goldman Sachs also outlined key risks for the company. These include “concentration in Creta/Venue models”, competition in the SUV market and its share in Indian markets vs Kia. Emission compliance is also seen as a risk that may weigh on growth.