Subscribe for Hyundai Motor India IPO; Motilal Oswal

IPO

Motilal Oswal, Hyundai Motor India Ltd

Second largest auto OEM in India: Hyundai Motor India Ltd (HMIL) holds 14.6% market share in the domestic passenger vehicle (PV) market in Q1FY25, second to Maruti Suzuki which has 41% share in this category. However Hyundai is the market leader by volume in the mid-size SUV segment with ~38% share as on June’24. It is also India’s second largest exporter of PV from April’21 through June’24.

Valuation and Outlook

We recommend ‘Subscribe for long term’. At the upper price band of ₹1960, the issue is priced at 26.3x FY24 P/E and looks reasonably priced compared to Maruti which is trading at 29.8x. We expect HMIL to be a key beneficiary of growth in PV segment due to its strong presence in the SUV segment. It is also planning a slew of launches in the EV space.

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