Hyundai Motor India’s strategic shift to launching more new models may cause stock price to rise
By Ankur Chandra | Updated at: Nov 12, 2025 12:43 PM IST
Hyundai Motor India shares are gaining today. At 11: 25 a.m. 12th November, 2025, its shares are up by 1.57%, trading at Rs 2,392.90. Nifty 50 index is up by 0.74% at this time. Nifty Auto Index is up by 1.22% at this time.
Rs 45,000 crore capital expenditure between FY 26 – FY 30
A number of brokerage houses have either given BUY calls or raised their target price for Hyundai Motor India shares in the past 1 month. This after the company unveiled its plan to do capital expenditure of Rs 45000 crore between FY 26 – FY 30. This capital expenditure will mainly go into developing new models in conventional, electric, and hybrid vehicle segments. The company has a pipeline of 26 new models to be developed and launched between FY 26- FY 30.
Company to follow the strategy of launching more new models
Hyundai Motor India’s strategy till now has been to operate with limited number of models and focus on achieving success on the models that are there. This strategy has worked in that most of the models that it has launched till now have been successful. But this strategy may be the cause of loss in market share that the company has seen in the past one or two years. It has lagged behind competitors in launching more new models. Hyundai’s market share at the end of FY 25 stood at 14%. The company is currently too much reliant on the success of one or two models for its sales.
Targeting further improvement in profit margin
The company’s management expects profit margin of the company to remain between 11% and 14% in the period between FY 26 – FY 30. Net profit margin of the company currently is around 8.8%. Net profit margin is the percentage of sales that is left for shareholders after meeting all other expenses. The higher 11%-14% profit margin for the next 5 years means that the company will also invest in reducing costs and improving efficiency. Hyundai Motor India competes on the quality factor. This has also helped the company in maintaining strong exports.
20%-40% dividend payout target for the next 5 years
The management of the company has said that it intends to have a dividend payout ratio of 20% – 40% over the next 5 years. This much percentage of its profits it intends to pay out to its shareholders as cash. That will make Hyundai a good dividend stock.
Hyundai Motors India shares are currently trading at 12 month trailing price-to-earnings (P/E) ratio of 34.01. Average P/E multiple at which stocks in Nifty Auto index are trading is 27.71. Hyundai shares are trading at a higher multiple than most of its industry peers.
Year-to-date (YTD) in 2025, Hyundai India shares have gained 32.98%. Nifty 50 index has gained 9.08% in this period. Nifty Auto index has gained 17.41% in this period.
Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.
Source: NSE. Hyundai Motor India
