Hyundai Motor India Stock Price :Are you disappointed by investing money in Hyundai Motor India’s IPO or had missed the IPO, in both the conditions now there is a positive report for you. In the coming days, the stock of the recently listed company will not only beat its IPO price, but it can also become about 24 percent stronger than the current price. Brokerage house Motilal Oswal has given a target price of Rs 2235 with a buying advice on the shares of Hyundai Motor India. This is 24 percent more than yesterday’s closing price of Rs 1815. The IPO price is also 14 percent higher than Rs 1960.
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Shares below IPO price most of the time
The company launched its IPO in India in October 2024, which was considered to be the largest IPO in the country. The issue price of the IPO was Rs 1,960 per share, while it was listed on BSE at Rs 1,931 and on NSE at Rs 1,934 i.e. at a discount. The all-time high of the share after listing is Rs 1970, but most of the time it remains below the IPO price. The company has released quarterly results for the first time since the IPO. The results are not good, but the brokerage has pointed out some positive factors regarding the company’s outlook. It has even been given preference over Maruti Suzuki stock.
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High target price with buy rating
Brokerage house Motilal Oswal has advised to buy on Hyundai Motor India and has given a target price of Rs 2235, estimating 24 percent upside from the current price. The brokerage says that while FY25 is likely to be a moderate year for PVs in India and consequently for HMIs, we estimate the company to report 8% volume CAGR over the next 2 years. After subdued FY25E earnings, the company is expected to post 14% earnings CAGR in FY25-27E.
When Hyundai Motor India is compared with Maruti Suzuki, its closest peer, we believe that both are very close in terms of OEM, competency and future growth potential. But we can give a slight premium to Hyundai Motor India compared to Maruti Suzuki, there is some reason behind this. 1) HMC’s technical proficiency in emerging technologies that can be adapted as needed to meet the needs of Indian customers; 2) Better financial metrics; 3) relatively premium brand perception; and 4) Better alignment with industry trends. Hence the brokerage has assigned a multiple to Hyundai Motor India at 27x Sep’26E, relative to our target multiple of 26x currently priced at Maruti Suzuki.
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This factor is also positive for the company
Rural demand positive:Hyundai Motor India believes that better crop production due to better monsoon should boost rural demand in the coming months. The contribution of rural area to the total volume for HMI is 21 percent, whereas last year it was 20 percent, which used to be 16.5-17.0% a few years ago.
Export: Most countries, especially Africa, Mexico and LATAM, saw volume growth in 1HFY25. However, regions like the Middle East faced adverse conditions due to the Red Sea crisis. The company reiterated that India will be its production center for emerging markets.
New product launch: HMI has planned four new EV launches, starting with the Creta EV scheduled for 4Q launch. Although HMI did not provide specific information on the upcoming ICE models, it noted that the company will continue to target the white space and explore new and growing segments.
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How were the company’s results?
Net profit: 16% decline in Q2FY25 to Rs 1,375 crore.
Decline in Revenue: The company’s total income declined by 7.5% to Rs 17,260 crore, from Rs 18,660 crore in Q2FY24 last year.
Decrease in EBITDA: This quarter’s EBITDA was Rs 2,205 crore, which is 10% less than last year.
Operating Margin: Decreased to 12.8% from 13.1% last year.
(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.)
