Hyundai Share Price Highlights October 23, 2024: Hyundai Motor India shares close 4% higher

Shares of Hyundai Motor India closed 4.42% higher on the NSE at ₹1,900. 

On the BSE, the stock closed 4.19% higher at ₹1,896.70.

Shares of Hyundai traded at ₹1,895 on the NSE, higher by 4.14% as at 3 pm.

Analysts are rushing to recommend investors buy shares of Hyundai Motor India Ltd., a much-needed show of support after the stock’s disappointing trading debut Tuesday.

The local unit of the Korean automaker now has a total of six positive recommendations, from Nomura Holdings Inc. and Macquarie Group Ltd. along with local brokers including Motilal Oswal Securities Ltd. It’s received just one sell-equivalent rating so far, from Emkay Global Financial Services Ltd., and no holds.

Bullish analysts are citing robust growth prospects for India’s second-largest automaker. Its shares climbed as much as 6% on Wednesday, rebounding after their opening-day loss of 7.2%.

Hyundai Motor Co. raised about $3.3 billion in what was India’s largest-ever initial public offering. The stock debuted to a cooling Mumbai market as investor focus shifts to China’s stimulus drive.

The IPO saw tepid demand from small investors who were turned off by the parent company getting all of the deal proceeds. The unit’s share sale also met with concerns over slowing growth in India’s passenger vehicle market.

The average price target forecasts a 13% gain in the stock over the next 12 months compared with the IPO price. Hyundai India is “well-positioned to reach greater heights,” Motilal Oswal analysts Aniket Mhatre and Amber Shukla wrote in a note.

The company should benefit from increased penetration of automobiles in the world’s fastest growing large economy as well as customers’ willingness to pay more for attractive designs and better features. Nomura says these factors should lead to 3-5% annual growth in average selling prices for carmakers.

Bloomberg

Shares of Hyundai Motor India traded at ₹1,904.90 as at 2.25 pm on the NSE, higher by 4.69%.

Shares of Hyundai traded at ₹1,904.05 on the NSE, higher by 4.64% as at 12 noon.

Shares of Hyundai Motor India were up 2.97% on the NSE to trade at ₹1,873.60 as at 11.15 am.

Automobile companies have said that they are still monitoring the situation on Corporate Average Fuel Efficiency Norms (CAFE) with alternate fuels like CNG, hybrid, efficient engines or electric vehicles, while the government has not published any new data on the average CO2 emitted by vehicles of each company.

CAFE norms are imposed on the entire fleet of a car maker and the government has set a limit on the total emission of CO2 produced by all the vehicles in a financial year. The norms have forced the companies to make more efficient cars thereby emitting less pollutants and increase in fuel efficiency. The CAFE norms was notified in 2018 with two target phases of CO2 emission of 130g/ km by 2022-23 and 113 g/km from 2022-23 onwards.

Market leader Maruti Suzuki India has already met the norms with below the target at 104.73g/km instead of 107.28 g/km. Tata Motors too has achieved 105.75 g/km from the target of 118.81 g/km.

However, Hyundai Motor India (HMIL), Skoda Auto Volkswagen India and Mahindra & Mahindra are at lower slab of penalty (.₹25,000 per car), while companies like Kia India, Renault India, Nissan Motors India, Honda Cars India and Force Motors are in red which means they are on higher slab of penalty (₹50,000 per car).

HMIL has confirmed that it is in compliance with the necessary norms. “The Group also confirms that the amendments pursuant to the Energy Conservation (Amendment) Bill, 2022 read with The Motor Vehicles (Amendment) Act, 2019 norms is effective from April 1, 2023. We have been monitoring the situation on this topic. Our endeavour is to meet the CAFÉ norms and we are working towards it with the help of application of strong hybrid technology and battery electric vehicle in future,” the company said.

Read more

Hyundai Motor Group Executive Chair, Euisun Chung met PM Narendra Modi and invited him to the opening of the Hyundai plant in Pune, Maharashtra.

bl Pune Bureau reports

Hyundai Motor India shares surged 3.98% on the NSE to ₹1,892 as at 10.16 am.

Shares of Hyundai traded at ₹1,837.80 on the NSE, up 1% as at 9.44 am.

Shares of Hyundai gained 1.23% on the NSE in early trade on Tuesday.

​​​​Shares of Hyundai Motor India​​​​ dipped nearly 5% on Monday post-listing. It declined 4.60% to close at ₹1,845 on the NSE, and by 5.73% to ₹1,846.95 on the BSE.

Shares debuted today on the NSE at ₹1,934 and at ₹1,931 on the BSE, at a discount of 1.3% against the issue price of ₹1,960. 

Global brokerages such as Macquarie and Nomura have initiated coverage on Hyundai Motor India, given buy ratings. Domestic brokerage Motilal Oswal sees 20% upside on Hyundai Motor and has given a buy rating at a target price of ₹2,345. 

Meanwhile, the stock tanked 5% alongside market indices Nifty 50 and Sensex sinking by 1.25% and 1.15%, respectively.

Another brokerage Emkay assigned ‘reduce’ rating on the stock at a target price of ₹1,750.

Track bl’s stock market live here

South Korean auto major Hyundai Motor Company is taking the next big step with the IPO of its Indian arm which shows its commitment to the country, Hyundai Motor Group Executive chair Euisun Chung said on Tuesday.

Speaking at the listing ceremony of Hyundai Motor India Ltd (HMIL) here, Chung also said that the IPO also shows HMIL is a key part of India.

Shares of Hyundai Motor India Ltd made a muted market debut and further fell by nearly 6 per cent against the issue price of Rs 1,960.

The Rs 27,870-crore initial public offer of Hyundai Motor India Ltd, which had a price band of Rs 1,865-1,960 per share, was subscribed 2.37 times on the last day of the bidding on Thursday, helped by institutional buyers.

With this fundraising, HMC has diluted its stake by 17.5 per cent in HMIL.

This was the largest IPO in the country, surpassing LIC’s initial share sale of Rs 21,000 crore.

The Initial Public Offer (IPO) was entirely an Offer For Sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component.

HMIL commenced operations in India in 1996 which was by the launch of Santro model in 1998. It currently sells 13 models across segments.

“Today’s IPO shows that HMIL is a key part of India. It demonstrates our commitment to this great nation and ensures that our shareholders and HMIL will continue to grow together,” Chung said.

From the beginning, Hyundai Motor Company knew that India was the future, and hence, it has been increasing investments and expanding its R&D capabilities in the country, he stated.

HMIL has emerged as the fastest growing auto major in India which today is considered an icon of innovation, Chung said, adding, “As India marches towards the Viksit Bharat vision, Hyundai will stand as a trusted partner in it.” “This IPO is the right action for us to take a step forward to further Indianize, our operations, and we want to become a home brand ... while the IPO is an important milestone, but it’s the just the beginning,” Hyundai Motor India Managing Director Unsoo Kim told reporters during an interaction.

“We will put our all efforts to satisfy our customers, with our prominent products, and the services, and uphold our shareholders value and also contribute to India’s sustainable growth with our continued investment,” he added.

The company pays 3.5 per cent of the passenger car revenue as royalty to the parent HMC, which is in line with or less than of the market for (availing) technology, electric vehicles, future technologies as well and the use of brand, HMIL Chief Operating Officer Tarun Garg said, and added that this will remain unchanged post IPO.

India’s story is much more robust than a few months of slowdown as the demand has always bounced back very quickly, he said, emphasising that the company is very optimistic and confident about the growth of the industry.

Going by the VAAHN data, the vehicle registration is 25-30 per cent up sequentially in October, he said.

He said that HMIL has a very robust plan for capex which is to the tune of Rs 32,000 crore to be spent until 2032, which includes capacity expansion, a strong EV localisation ecosystem, among others.

PTI report

Hyundai Motor India shares tumbled 5.99% on the NSE to ₹1,818.25 as at 3 pm.

Nomura and Macquarie have initiated coverage on Hyundai Motor India with ‘buy’ ratings.

Some analysts had noted that the company’s valuation could limit listing gains.

Mihir Manek of Aditya Birla Capital said prior to the listing that while Hyundai’s outlook in India “continues to be strong”, the offering was at a “rich valuation”.

Other concerns that dogged the IPO included a decline in urban consumer sentiment hitting India’s automobile sales.

Retail vehicle sales fell by more than nine percent in September, with the Federation of Automobile Dealers Associations saying car yards had reached “historically high inventory levels of 80-85 days”.

Hyundai made a splash in India during the late 1990s and early 2000s with its popular small cars and sedans.

The automaker has more recently seen success with larger models, including strong demand from Indian customers for its sports-utility vehicle the Creta.

Reuters input

Reuters input

“Our journey in India began in 1996... and now, 28 years later, we are going public by launching India’s largest IPO in history,” Hyundai Motor Group executive chair Euisun Chung said at the listing ceremony in Mumbai.

“From the beginning, we knew that India was the future,” he added. “Today’s IPO... demonstrates our commitment to this great nation.”

While shares in Hyundai Motor India’s IPO were oversubscribed more than two times, retail investors snapped up only half the tranche reserved for them.

Reuters input

Hyundai Motor India stock tumbled 4.97% on the NSE to ₹1,837.80 as at 2.20 pm.

(NSE data)

Hyundai Motor shares traded at ₹1,871.90 on the NSE, lower by 3.21% as at 1.40 pm.

Hyundai Motors India (HMI) holds a diverse portfolio mix that covers almost 87% of India’s passenger vehicle (PV) market. HMI boasts a healthy domestic market share in several fast-growing segments, with 34%/20%/18% share in the mid-size SUVs/compact SUVs/premium compact car segments. HMI is well-aligned with the domestic PV industry trends, as 63% of its mix comes from utility vehicles (UVs).

- HMI receives extensive support from its parent, Hyundai Motor Company (HMC), in the areas of management, R&D, design, supply chain, et al. HMC’s inherent strengths in emerging mobility domains can be effectively leveraged for the Indian market, which remains one of HMI’s core strengths.

- HMI has emerged as India’s second-largest PV exporter, with significant growth opportunities on the horizon. Following a projected moderation in FY25, we anticipate HMI to report 17% EPS CAGR over FY25-27. We ascribe a slight premium to HMI over Maruti Suzuki (MSIL), given: 1) HMC’s technological prowess in emerging technologies that can be adapted to domestic requirements; 2) superior financial metrics; 3) a relatively premium brand perception; and 4) better alignment with industry trends. We initiate coverage on HMI with a BUY rating and a TP of INR2,345, premised on 27x Sep’26E earnings (vs. 26x for MSIL).

Shares of Hyundai Motor India traded at ₹1,891.70 on the NSE, down by 2.19% as at 12.04 pm. 

On the BSE, the stock traded at ₹1,881.70.

Today’s high: ₹1,970

Today’s low: ₹1,844.65

Hyundai Motor India shares traded at ₹1,873.10 on the NSE, down by 3.15% as at 11.45 am.

We initiate coverage on Hyundai Motor India (HMIL) with REDUCE (TP of Rs1,750, at ~23x core Sep-26E PER, similar to MSIL) amid a lackluster ~5% EPS CAGR over FY24-27E. HMIL has established a strong franchise in India; however, lack of major launches (key growth driver historically in PVs) over the next 12-18M, muted ~5% capacity CAGR, higher royalty, and lower treasury income are likely to restrict EPS growth. While MSIL (REDUCE) also faces similar near-term growth challenges, we prefer it over HMIL given its catch-up on operational and financial metrics (even on lower SUV mix) with a much diversified product and powertrain mix and a higher growth optionality (potential small-car recovery, aggressive 8% capacity CAGR, 7-seater SUV launch in H2FY26E, and 10 new models by 2030) driving a superior 6%/10% revenue/EPS CAGR over FY24-27E.

Hyundai Motor India Ltd. shares slipped almost 6% early in their Mumbai debut, a tepid start to trading for what was the nation’s largest-ever initial public offering.

The shares traded as low as 1,844.65 rupees after they were priced at 1,960 rupees, the top of the marketed range. South Korea’s Hyundai Motor Co. sold a 17.5% stake in its local unit in the IPO, seeking to benefit from the investor frenzy for share sales in India — one of the world’s most vibrant venues for listings this year.

Hyundai Motor India, the nation’s second-largest carmaker by sales, was valued at about $19 billion in the IPO. Some saw the shares as pricey, with Bloomberg Intelligence analyst Joanna Chen noting the valuation was about five times its Korean parent’s, though in line with those of Indian peers such as Maruti Suzuki India Ltd.

While the offering was eventually oversubscribed more than two times, book-building was slower than some had anticipated. Hyundai’s deal saw strong demand from institutions, which flooded in on the last day of sale. Retail investors, however, only bought about half the portion that had been reserved for them in the IPO.

Individual traders were turned off by the parent company getting all of the IPO proceeds as well as cooling demand in India’s auto industry, analysts have said. The poor retail interest stands in contrast to the frenzy seen in some recent IPOs, particularly smaller issues.

‘Long-Term Value’

Hyundai’s initial decline makes it an outlier given that enthusiasm for Indian share sales has generally carried over to their post-listing performance. New listings in the nation have risen by an average of 39% in their first trading day this year, according to data compiled by Bloomberg. Among IPOs of over $500 million, the average gain was 66%.

Some analysts are positive on the stock’s long-term prospects.

“Hyundai Motor India’s IPO offers potential long-term value, but it is not suited for investors seeking quick gains,” Devi Subhakesan, an analyst at Investory Pte, wrote in a note on Smartkarma ahead of the debut. “Valuation risks are expected” amid shifting consumer preferences and rising competition in India’s auto industry.

India’s emergence as the world’s fastest-growing major economy as well as its expanding middle class present an opportunity for automakers. The nation’s car market is on track to reach 20 million units by 2047, Suzuki Motor Corp. Executive Vice President Kenichi Ayukawa said in an interview in July. A total of 4.2 million passenger vehicles were sold in India in the fiscal year ended in March, according to the Society of Indian Automobile Manufacturers.

Nomura Holdings Inc. initiated coverage with a buy rating ahead of the listing, citing expectations for “healthy” volume growth and vehicle price increases. It set a price target of 2,472 rupees, implying a potential upside of about 26% over the IPO price.

With Hyundai’s proceeds, Indian IPOs have raised more than $12 billion so far this year, eclipsing volumes for the past two years but still below the record $17.8 billion raised in 2021, according to data compiled by Bloomberg. Other pending debuts include food-delivery company Swiggy Ltd. and the renewable-energy arm of state-run power producer NTPC Ltd.

Around 20 companies from Asia Pacific are listing shares this week in deals that may raise more than $8 billion, the biggest weekly volume since April 2022, according to data compiled by Bloomberg. Shares of Japan’s Tokyo Metro Co. are scheduled to start trading on Wednesday after a $2.3 billion offering.

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.

Shares of Hyundai Motor India traded at ₹1,891.10 on the NSE, down by 2.22% as at 11.07 am.

Read more

Nomura on Hyundai India

Initiate Buy, TP Rs 2472

Riding on style & technology

Ongoing premiumization should drive high-quality growth

Long runway for Indian car industry – current penetration at 36 cars/1,000 people

Est to deliver 8% vol CAGR over FY25-27F driven by 7-8 new models (including facelifts) & its EBITDA margins to improve to 14% by FY27F from 13.1% in FY24; led by improving mix, cost reduction & operating leverage

Macquarie on Hyundai India

Initiate O-P, TP Rs 2235

Believe deserves premium PE multiple vs peers due to its favourable portfolio mix & premium positioning.

Powertrain optionality, including parent capabilities & market share upside risk are medium-term +ves

Catalysts: Domestic PV demand, Co’s market share trends, including new model launches and margin improvement led by portfolio mix.

Market rewards earnings/market share delivery with a sustained PE multiple premium over PV peers

(NSE data)

Hyundai Motor shares have slipped to ₹1,880.50 on the NSE, lower by 2.77% post-listing at ₹1,934. 

Hyundai shares list at ₹1,934 on the NSE and at ₹1,931 on the BSE, against the issue price of ₹1,960.

The IPO was subscribed 2.37 times overall. The QIB portion was subscribed nearly seven times, with bids for 19.72 crore shares against the 2.82 crore shares on offer.

Read more

Hyundai Motor Group Executive Chair Euisun Chung recently met the Prime Minister of India, Narendra Modi, and discussed subjects related to the future of mobility. 

https://x.com/HyundaiIndia/status/1848397567920681081

Macquarie has initiated coverage on Hyundai Motor India with Outperform rating with a target price of ₹2,235, implying 14 per cent upside to issue price.

Shares of Hyundai Motor India’s (HMIL) will be listed at the bourses on Tuesday. The ₹27,870-crore IPO, the largest to date in Indian IPO history, was struggling but sailed through on the final day with help from qualified institutional buyers. The company has fixed the IPO price as ₹1,960 at the upper end of the price band ₹,1865-1,960.