Hyundai Motor India Stock Rating :After the poor listing of Hyundai Motor India, recovery is being seen in the stock today. Today the stock of Hyundai Motor became stronger by more than 1.50 percent and reached the price of Rs 1850. Whereas on October 22, it slipped by about 7 percent from the IPO price and closed at Rs 1820. After the listing of the stock, this is the first view of any brokerage house on it. Brokerage house MK Global has given Reduce rating on the stock and has given a target price of Rs 1750. Hyundai Motor had kept the IPO price at Rs 1960, while the stock was listed at Rs 1931, in which the decline increased further.
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Maruti Suzuki is a better option than Hyundai
Brokerage house MK Global has initiated coverage on the stock by giving a reduce rating on Hyundai Motor India (HMIL) with a target price of Rs 1750 amid 5 per cent EPS CAGR decline during FY24-27E. The brokerage says that Hyundai Motor India has established a strong franchise in India. However, EPS growth may remain subdued over the next 12-18 months due to lack of major launches (historically a key growth driver in PV), muted 5% capacity CAGR, higher royalty and lower treasury income.
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Whereas Maruti Suzuki (REDUCE rating) is also facing challenges regarding similar growth in the near term. However, the brokerage says we prefer Maruti over Hyundai Motor, given its more diversified product, powertrain mix and higher growth potential along with strength in operations and financial metrics (even at lower SUV mix). . Maruti has high growth potential due to potential small car recovery, aggressive 8% capacity CAGR, 7-seater SUV launch in H2FY26E, and 10 new model launches by 2030.
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Is there a long term option?
Shivani Nyati, Head of Wealth, Swastika Investmart, says Hyundai Motor India holds a strong market position as the second largest passenger vehicle company in India. Its strategic focus on SUVs is promising. Investors with a long-term outlook and the ability to weather potential listing challenges may consider retaining their investment post-listing for the company’s potential growth in future. Hyundai’s strong fundamentals make it an attractive investment option for the long term.
(Disclaimer: The views or advice on shares are given by brokerage houses and experts. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)