Hyundai Motor turns India's 5th most valued automaker with Rs 1.59 lakh cr m-cap

Hyundai Motor India Ltd has become the fifth most valuable automaker in India, with a market capitalisation exceeding Rs 1.59 lakh crore after its listing. The stock has also entered the ranks of the top 60 most valuable companies in India, though it listed at Rs 1934, below its issue price of Rs 1,960 per share.

Maruti Suzuki India Ltd continues to lead the league with a market cap of Rs 3.83 lakh crore, followed by Mahindra & Mahindra Ltd at Rs 3.73 lakh crore, Tata Motors at Rs 3.32 lakh crore, and Bajaj Auto 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. Hyundai’s valuation surpassed prominent companies like Divi's Lab, Power Finance Corp, Tata Power Co Ltd, Gail India, BPCL and Ambuja Cements.

Macquarie has initiated coverage on Hyundai Motor, highlighting its strong portfolio mix and premium market positioning, which justifies a premium P/E multiple compared to its peers. The brokerage said the company 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 percent upside from the upper band of the issue price.

The public issue saw moderate subscription, with an overall bid of 2.3 times. The subdued grey market premium (GMP) of Rs 67 (3.42 percent) prior to listing suggested limited enthusiasm for listing gains, further compounded by the company’s fully priced valuation, leading to a muted debut.

Analysts note that despite the discounted listing, Hyundai Motor India's robust fundamentals—as the second-largest passenger vehicle manufacturer in India—and its strategic focus on the SUV segment support its long-term growth prospects. Investors with a long-term outlook may consider holding the stock, as future performance is expected to be driven by Hyundai's competitive market position and product innovations.

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