The Hyundai Motor India Limited (NSE:HYUNDAI) Annual Results Are Out And Analysts Have Published New Forecasts
It's been a good week for Hyundai Motor India Limited (NSE:HYUNDAI) shareholders, because the company has just released its latest full-year results, and the shares gained 7.9% to ₹1,895. The result was positive overall - although revenues of ₹692b were in line with what the analysts predicted, Hyundai Motor India surprised by delivering a statutory profit of ₹69.41 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Hyundai Motor India's 18 analysts are now forecasting revenues of ₹741.7b in 2026. This would be a satisfactory 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.1% to ₹72.95. Before this earnings report, the analysts had been forecasting revenues of ₹754.3b and earnings per share (EPS) of ₹74.06 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Hyundai Motor India
There were no changes to revenue or earnings estimates or the price target of ₹2,068, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Hyundai Motor India at ₹2,291 per share, while the most bearish prices it at ₹1,625. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Hyundai Motor India's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past three years. Compare this to the 16 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.3% per year. Factoring in the forecast slowdown in growth, it looks like Hyundai Motor India is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Hyundai Motor India. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hyundai Motor India going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 2 warning signs for Hyundai Motor India (1 can't be ignored!) that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.