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Hyundai Motor India stocks debuted on the exchanges with a market capitalisation surpassing Rs 1.59 lakh crore, becoming India’s fifth most valuable automaker in India read more
 "Hyundai Motor India debuts in D-Street, with Rs 1.59 lakh crore m-cap becomes India's 5th most valued automaker")
Executive chair at the South Korean automaker Hyundai Motor Group Euisun Chung gestures during the listing ceremony of Hyundai Motor India for its initial public offering (IPO) at the National Stock Exchange (NSE) in Mumbai on October 22, 2024. Source: AFP.
Hyundai Motor India made its stock market debut on Tuesday (October 22) and slipped almost 6 per cent during the day’s trade, but with a market capitalisation surpassing Rs 1.59 lakh crore after listing, it has become the fifth most valuable automaker in India.
Hyundai India share was listed at Rs 1,931 per share on the BSE, a decline of 1.47 per cent from the issue price on the exchange. The stock, later, made some recovery and hit a high of Rs 1,968.80, up 0.44 per cent. However, the counter failed to carry the momentum and further tanked 6.12 per cent to Rs 1,840 apiece on the BSE.
On the NSE, shares of Hyundai Motor India made its debut at Rs 1,934, down 1.32 per cent. Later, during the trading hours, the shares of the automaker tumbled 6 per cent to Rs 1,842.
Hyundai Motor India valuation stood at Rs 1,50,303.85 crore on the NSE around 2:20 PM against Rs 1,52,290.52 crore during the morning trade, a decline of 1986.67 crore in market cap.
Despite a muted start, the stock of Hyundai Motor India entered the ranks of the top 60 most valuable companies in India.
Which are top 4 automakers in India in terms of market cap?
The lead spot is retained by Maruti Suzuki India Ltd with a market cap of Rs 3.83 lakh crore. It is followed by Mahindra & Mahindra Ltd at Rs 3.73 lakh crore.
Tata Motors mcap is at Rs 3.32 lakh crore, while Bajaj Auto is at Rs 2.93 lakh crore.
Other leading automakers include Eicher Motors Ltd at Rs 1.31 lakh crore and TVS Motor Co Ltd at Rs 1.30 lakh crore.
The valuation of Hyundai Motor India surpassed prominent companies including Divi’s Lab, Power Finance Corp, Tata Power Co Ltd, Gail India, BPCL and Ambuja Cements.
The Rs 27,870 crore Hyundai Motor India IPO was booked 2.3 times, with full subscription achieved only on the last day.
While the immediate listing gains may be modest, analysts suggest that Hyundai’s robust fundamentals make it attractive for long-term investment.
Meanwhile, Hyundai, the second-largest passenger vehicle manufacturer in India, has ensured to maintain a stable share market in India historically.
Despite the discounted listing, analysts note that Hyundai Motor India’s robust fundamentals and strategic focus on the SUV segment support its long-term growth prospects.
Analysts suggest investors with a long-term outlook may consider holding Hyundai Motor stock, as future performance is expected to be driven by the automaker’s competitive market position and product innovations.
Macquarie has initiated coverage on Hyundai Motor, focusing on its strong portfolio mix and premium market positioning, which justifies a premium P/E multiple compared to its peers.
The brokerage said Hyundai Motor is well-positioned for medium-term growth, supported by powertrain flexibility and the expertise of its parent company, along with potential market share gains from new model and powertrain launches.
Macquarie has given an ‘outperform’ rating with a target price of Rs 2,235, indicating a 14 per cent upside from the upper band of the issue price.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd said, “Despite the discounted listing, Hyundai Motor India’s strong fundamentals, being the second-largest passenger vehicle manufacturer in India and its strategic focus on the SUV segment, continue to support its long-term growth prospects.”
With inputs from agencies.
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