Hyundai Motor India shares rose as much as 2.1% on August 26, touching a day high of Rs 2,279 on the NSE.

The move came after brokerage firm Emkay Global Research raised its 12 month target price on the stock, giving investors fresh reason to buy into the counter.

So what exactly changed? Emkay lifted its target to Rs 2,600 from Rs 2,450 earlier, while keeping its Buy rating in place. At current levels, that new target implies an upside of 16.8%.

Let’s break down why Emkay turned more bullish. The brokerage pointed to Hyundai entering a much stronger product cycle after a fairly quiet stretch.

Between FY21 and FY26, the company launched just three new models. That’s about to change, with 26 planned product actions over the next five years, including seven completely new nameplates.

SUVs are doing a lot of the heavy lifting here too. These vehicles made up 68% of Hyundai’s domestic sales volume in FY26, up sharply from 52% back in FY22.

This shift toward SUVs, along with a wider mix of powertrains and growing exports, should keep pushing average selling prices higher.

There’s also a bigger strategic angle. Hyundai’s Korean parent is reportedly repositioning India from a manufacturing base into more of a creation hub, with plans for India to become the company’s second largest market globally by 2030.

Alongside this, Hyundai is investing Rs 45,000 crore over five years toward automation, EV localisation and expanding capacity to 1.1 million units annually by FY31, up from around 909,000 units currently.

Zooming out a bit, the stock has already delivered a 13% return over the past month, though it remains down 10% over the past year.

At the close of trade on Wednesday, Hyundai Motor India shares settled at Rs 2,250.00 on the NSE, up 0.78% for the day, against a previous close of Rs 2,232.50.

The future of investing is here!

Tradz by EquityPandit leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app today and 10x your trading & investing journey!