Hyundai Motor India Ltd has been making headlines in the stock market lately, with shares taking a significant hit during the recent trading session. The downward trend in Hyundai Motor India’s stock price has been attributed to various factors, including concerns about trading volume, speculation about relaxed electric vehicle (EV) imports, lackluster quarterly earnings, and the anticipated entry of Tesla into the Indian market.
During Thursday’s trading session, Hyundai Motor India’s stock plummeted by over 6.65 percent to Rs 1,700.05, marking a substantial drop from its previous closing price of Rs 1,821 on Tuesday. The company’s market capitalization currently stands at Rs 1.38 lakh crore, as investors closely monitor the stock’s movement towards its 52-week low of Rs 1,610.15.
The Story Behind the Numbers
Back in October 2024, Hyundai Motor India made a grand entrance into the Indian markets with a massive IPO valued at Rs 27,870 crore. Despite an initial surge in share price to Rs 1,968, the stock is now down by 13.25 percent from its IPO price of Rs 1,960. Since then, Hyundai Motor India has been in the limelight, with a series of analyst and institutional investor meetings scheduled with JP Morgan in early March.
Hyundai Motor India, a subsidiary of South Korea’s Hyundai Motor Group, has a long-standing presence in the Indian automotive market, offering a diverse range of passenger vehicles known for their reliability, advanced features, and cutting-edge technology. With over 25 years of experience, Hyundai Motor India has carved a niche for itself as a leading player in the four-wheeler segment, manufacturing not only vehicles but also essential components such as transmissions and engines.
Recent Financial Performance and Analyst Projections
In its most recent financial report for the December 2024 quarter, Hyundai Motor India reported a 19 percent year-on-year decline in net profit, attributing the decrease to reduced domestic sales and exports. The company’s revenue from operations also saw a 1.3 percent decline year-on-year, reflecting challenges in the market due to subdued demand and geopolitical factors.
Following these results, InCred Equities expressed concerns over Hyundai Motor India’s performance, highlighting a 19 percent year-on-year drop in earnings per share (EPS) and a decline in EBITDA margin to a two-year low of 11.3 percent. The company’s plans for the Creta electric vehicle (EV) volume failed to impress analysts, leading to a downward revision of earnings projections.
Looking Ahead: Expert Insights and Market Outlook
Despite the challenges faced by Hyundai Motor India, industry experts remain cautiously optimistic about the company’s future prospects. Anand Rathi Research anticipates a flat volume growth for Hyundai Motor India in the fiscal year 2025, with a slight contraction in volume recorded so far. Market share performance has been a concern, with a 70 basis points decline on a year-to-date basis, even though the Hyundai Creta achieved record sales numbers in January 2025.
Motilal Oswal continues to view Hyundai Motor India as a top pick in the auto sector, maintaining a ‘buy’ rating on the stock with a target price of Rs 2,235. Other brokerage firms such as JM Financial and Kotak Institutional Equities have also expressed positive sentiments, with ‘buy’ and ‘add’ ratings along with target prices of Rs 1,900 and Rs 2,000, respectively.
As investors navigate the volatile stock market landscape, it’s essential to approach investment decisions with caution and seek guidance from qualified financial advisors. The road ahead for Hyundai Motor India may have its share of challenges, but with strategic planning and industry insights, the company aims to steer towards a path of growth and profitability.