Subscribe for Hyundai Motor India IPO; Ajcon Global

Ajcon Global, Hyundai Motor India Ltd

Hyundai Motor India Limited (HMI) is a part of the Hyundai Motor Group, the world's third largest auto Original Equipment Manufacturer ("OEM") in terms of passenger car sales in 2023. Since Fiscal 2009, the company has been the secondlargest car OEM in the Indian passenger vehicle industry (based on domestic sales volumes), according to the CRISIL Report. HMI manufactures and sells fourwheeler passenger vehicles that are reliable, safe, feature-rich, innovative, and equipped with advanced technology. The range consists of 13 models in several passenger vehicle sectors, including sedans, hatchbacks, SUVs, and EVs. The company manufactures items like transmissions and engines for its own production process or sales. HMI was India's second-largest exporter of passenger vehicles from April 1, 2021 to June 30, 2024, according to the CRISIL report. From 1998 to June 30, 2024, the firm sold almost 12 million passenger vehicles in India and exported them. HMI attributes its current market position to a diverse product offering, strong stakeholder relationships and operations, a strong Hyundai brand in India, the use of new technologies to improve efficiency, and the ability to innovate in new businesses like EVs. In CY2023, the company was among the top three contributors to HMC's global sales volumes, with a contribution that climbed from 15.48% in CY2018 to 18.19% in CY2023.

Valuation and Outlook

The Hyundai Motor India IPO presents an exciting opportunity for investors, especially with the company's expansion plans in the EV market. At the upper price band of Rs. 1960, the issue is priced at a P/E multiple of 26.73 its FY24 post IPO EPS of Rs. 73.33. We give a ‘SUBSCRIBE’ rating to the issue for the following.