Hyundai Motor India’s shares fell by 7% on their trading debut following a record $3.3 billion IPO, marking a disappointing start for the company in the Indian market. Analysts are now closely monitoring the situation for insights and future projections. Hyundai Motors India experienced a significant decline in its share price, dropping over 6.65% to Rs 1,700.05 during Thursday’s trading session. This decline has resulted in a total market capitalization of Rs 1.38 lakh crore, raising concerns among investors and analysts alike. The market’s reaction reflects ongoing challenges in the automotive sector, prompting a closer examination of the company’s performance and future outlook.
Hyundai Motor India Shares Decline Amid Market Concerns
Hyundai Motor India Ltd’s shares fell over 6.65% to Rs 1,700.05 during Thursday’s trading session, driven by concerns over sales volume, muted quarterly earnings, and the impact of Tesla’s entry into the Indian market. The stock’s market capitalization now stands at Rs 1.38 lakh crore, approaching its 52-week low of Rs 1,610.15.
Financial Performance and Market Challenges
The company reported a 19% year-on-year decline in net profit for the December 2024 quarter, totaling Rs 1,161 crore, with revenue from operations down 1.3% to Rs 16,648 crore. Analysts noted a significant drop in EPS and EBITDA margins, prompting concerns about future performance and market share, which has decreased by 70 basis points to 14.8%.
Analyst Ratings and Future Outlook
Despite the challenges, Motilal Oswal maintains a ‘buy’ rating on Hyundai Motors with a target price of Rs 2,235. JM Financial and Kotak Institutional Equities also have positive outlooks, with target prices of Rs 1,900 and Rs 2,000, respectively. Analysts are closely watching Hyundai’s upcoming product strategy and its potential to capitalize on industry trends toward utility vehicles.
