Hyundai Motor India’s IPO in October 2024 was the largest ever in India’s history, raising Rs 27,870 crore. Despite this strong debut, its shares have experienced a significant decline. As of March 18, 2025 , the stock hit a fresh 52-week low at Rs 1,551.40, marking a 21 percent decline from its IPO issue price of Rs 1,960.
Stock Performance
With a market capitalization of Rs 1,29,705.94 crore, the shares of Hyundai Motors rose over 1 percent to an intraday high of Rs 1601.50, compared to the previous closing price of Rs 1580.30. Over the past month, the stock has declined 14 percent, significantly underperforming the Nifty 50, which dropped just 1 percent.
Company Overview
Hyundai Motor India Limited, a subsidiary of the Hyundai Motor Group is the world’s third-largest auto original equipment manufacturer by passenger vehicle sales.
Market Share and Retail Sales
Notably, Mahindra and Tata beat Hyundai in retail sales last month, with Hyundai losing 100 basis points of domestic market share from April-December FY25. As a result, Mahindra became the second largest carmaker with a market share of 13.15 percent in February 2025.
During the same period, Hyundai’s market share slipped to 12.58 percent, dropping to 4th position with retail sales at 38,156 units.
Weak Quarter
According to the latest quarterly results, the company reported a 2 percent decline in revenue from Rs 16,590 in Q3 FY24 to Rs 16,242 crore in Q3 FY25. This was accompanied by a 19 percent fall in net profits from Rs 1,393 crore to Rs 1,124 crore during the same period.
Future Outlook
The company remains confident in its growth and in creating long-term value for stakeholders. With a strategic approach to electrification, the company sees rising EV adoption in India as a key opportunity. While global factors continue to pose challenges, management remains confident in the company’s strong business foundation.
Industry Outlook
Industry growth for domestic passenger vehicles in FY26 is projected to remain in the low single digits as the market is now stabilizing after years of strong growth. Analysts cite factors such as potential interest rate cuts, rising rural demand, and improved market sentiment as key positive drivers for the sector.
Brokerage View
InCred Equities sees volume and market share challenges ahead, as Creta EV may contribute only 10 percent of total Creta sales, limiting utilization of the new Pune plant. Analysts have lowered their sales estimates for the company by 2 percent for FY25-FY27.
Additionally, the firm expects Hyundai’s EBITDA margins to come under pressure due to the depreciation of INR as the company is a net importer. This led to a cut of 8 percent for FY25 EBITDA estimates and a 4 percent cut for FY26-FY27 estimates. Lower depreciation and interest costs are likely to limit the EPS reduction.
Written by Shwetha Sairam
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.
