Goldman Sachs: India Autos - 1Q27E Preview for Hyundai, Eicher, M&M, Bajaj, and Tata Tech
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Goldman Sachs published a first-quarter preview for Indian automobile OEMs, projecting robust volume momentum for the sector alongside strategic price hikes designed to offset raw material inflation. The report covers Hyundai Motor India, Eicher Motors, Mahindra & Mahindra, Bajaj Auto, and Tata Technologies. Overall first-quarter revenue and EBITDA are expected to grow 20% to 43% year-over-year.
Goldman Sachs anticipates that Eicher Motors and Bajaj Auto will likely beat Bloomberg consensus estimates, supported by favorable product mixes. Conversely, Hyundai faces temporary headwinds as supplier production issues will push some sales into the second quarter. However, Hyundai is expected to benefit from new product catalysts in FY27E and recovering high-margin export orders starting in July.
The firm adjusted its 12-month target prices to reflect evolving dynamics. Bajaj Auto's target was trimmed by 2% to INR 11,500, as raw material cost headwinds exceeding 400 bps offset 200 bps of price increases. Hyundai Motor India's target was raised by 7% to INR 2,350, driven by an improved SUV mix. Tata Technologies saw a 9% target increase to INR 510, maintaining a Sell rating despite stable deal momentum. Targets for Eicher (INR 9,100) and Mahindra (INR 3,650) remained unchanged. Key monitoring points include the trajectory of raw material costs, export shipping infrastructure availability, demand resilience following macro disruptions, and the timeline for the 8th Pay Commission.
Key exhibits
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