The Passenger Cars and Utility Vehicles industry in India is poised for significant growth, with the market projected to expand from $39.82 billion in 2024 to $54.76 billion by 2030, reflecting a CAGR of 5.45%. Utility vehicles now dominate, accounting for over 55% of new sales, indicating a shift in consumer preference.
With a market capitalization of Rs 1.52 lakh crore, the shares of Hyundai Motor India Ltd were trading at Rs 1,876.00 per share, decreasing around 3 percent as compared to the listing price of Rs 1960.00 apiece.
Brokerage Recommendations:-
Macquarie, one of the well-known brokerages globally, gave a ‘buy’ call on the recently listed automobile stock with a target price of Rs 2,235 apiece, indicating a potential upside of 19 percent from Tuesday’s price of Rs 1,876.00 per share.
Rational:-
According to the brokrage, Hyundai Motor’s solid portfolio mix and premium market positioning justify a higher P/E multiple than its peers. The brokerage stated that the firm is well-positioned for medium-term development, owing to powertrain flexibility and parent company experience, as well as potential market share gains via new model and powertrain releases.
Analysts note that, despite the discounted listing, Hyundai Motor India’s strong fundamentals as India’s second-largest passenger vehicle manufacturerand strategic concentration on the SUV category underpin the company’s long-term development potential. Long-term investors may want to consider keeping the company, as Hyundai’s competitive market position and product advancements are projected to fuel future success.
Financial Analysis:-
Examining the company’s financial performance, revenue magnified by 4 percent from Rs 16,624 crore in Q1FY24 to Rs 17,344 crore in Q1FY25, and during the same time frame, net profit zoomed multifold times by 12 percent from Rs 1,329 crore and Rs 1,490 crore.
The company’s geographical revenue distribution is as follows: India accounts for 77.5%, Africa contributes 4%, Latin America represents 6.5%, Middle East & Europe together make up 9%, and other regions account for 1%, highlighting India’s dominance in the revenue stream.
Expansion in the EV market:-
HMI is extending its position in the electric vehicle (EV) industry with models such as the IONIQ 5, and it intends to launch more EVs. Hyundai Motor India is expanding its EV supply chain and manufacturing capabilities in India, and it has invested in a battery assembly factory with a capacity of about 75,000 battery packs per year in the first phase by 2025.
Manufacturing facility:-
Hyundai operates two manufacturing facilities in Chennai, including one of its largest global plants outside Korea, with an annual production capacity of 824,000 units. The company plans to expand capacity with the Talegaon plant, expected to be operational by 2026, raising the total capacity to 1.07 million units.
Company profile:-
Hyundai Motor India Limited is the world’s third biggest auto original equipment manufacturer (“OEM”) by passenger car sales. The firm makes and sells dependable, feature-rich, and innovative four-wheeler passenger cars equipped with cutting-edge technology. The firm also makes items including gearboxes and engines.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
