&w=826&resize=826,465&ssl=1 "Hyundai Motor India IPO assessment: Price investing? Brokerages’ suggestion | Information on Markets")
Hyundai (Photograph: Shutterstock)
The analysts broadly stay optimistic concerning the public problem of the Indian arm of the South Korean carmaker, citing the valuation that seems at a reduction to the trade chief, Maruti Suzuki India.
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The Hyundai Motor India IPO, which opens for public subscription tomorrow, Tuesday, October 15, 2024, contains a complete provide on the market of 142,194,700 shares with a face worth of Rs 10 apiece. The general public problem shall be accessible at a worth band of Rs 1,865-1,960, with loads measurement of seven shares. Thus, a retail investor can bid for no less than one lot or 7 shares of the Hyundai Motor India IPO, with a minimal funding requirement of Rs 13,720.
In the meantime, the unlisted shares of the Indian arm of the South Korean carmaker are buying and selling at a premium of Rs 65 in opposition to the higher finish of the IPO worth of Rs 1,960, which interprets to a GMP of three.32 per cent. Nevertheless, in the present day’s GMP is lower than half of the Rs 147 recorded on October 9, when the corporate introduced its worth band, based on sources monitoring gray market particulars.
That stated, for those who’re questioning whether or not you must subscribe to the Hyundai Motor IPO, this is what brokerages advocate:
ICICI Direct – Subscribe
Analysts at ICICI Direct stay bullish on the Hyundai Motor India IPO and have advisable that buyers subscribe to the general public problem, citing regular development prospects amid trade tailwinds, strong financials, and a wholesome SUV product slate. On the higher finish of the value band, HMIL will command a valuation of 26x P/E, 16.5x EV/EBITDA, and a pair of.3x P/S on an FY24 foundation, which is at a slight low cost to the trade chief, Maruti Suzuki India.
Analysts anticipate restricted itemizing good points from this IPO however anticipate wholesome double-digit portfolio returns over the medium to long run.
KRChoksey Analysis – Subscribe
The corporate has reported ROE and ROCE of 57 per cent and 63 per cent, respectively, larger than its friends. In accordance with the brokerage, the IPO in all fairness valued at a PE a number of of 26x primarily based on its FY24 adjusted EPS.
Arihant Capital – Subscribe for the long run
Analysts at Arihant Capital are additionally bullish on the general public problem of Hyundai Motor India and advocate buyers subscribe for the long run. They highlighted that Hyundai has maintained a secure market share in India traditionally. With R&D from Korea and an automatic manufacturing unit in Chennai, the corporate has optimised its operations whereas increasing distribution.
In accordance with the analysts, Hyundai additionally plans to regularly turn out to be a significant participant within the EV phase. The corporate has recorded one of many highest RoNW amongst its friends and is well-positioned to benefit from the rising PV market in India.
Anand Rathi Analysis – Subscribe for the long run
Anand Rathi Analysis has advisable the buyers subscribe to Hyundai Motor India IPO from a long-term perspective. On the higher worth band, the corporate is valued at 26.2x FY24 earnings and 26.7x if FY25 earnings are annualised. The analysts imagine the difficulty is totally priced however advocate a ‘Subscribe – Lengthy Time period’ ranking.
IDBI Capital – Subscribe
IDBI Capital has assigned a ‘subscribe’ ranking to the Hyundai Motor India IPO. The brokerage is bullish on Hyundai India as a result of its SUV-focused portfolio and adaptableness to altering shopper preferences. HMIL’s sturdy parentage and cutting-edge manufacturing know-how will assist it keep forward within the home market.
SBI Securities – Subscribe
Analysts at SBI Securities stay optimistic concerning the Hyundai Motor India IPO, recommending subscription for the long-term. HMIL’s sturdy manufacturers, common fashions, superior know-how, and export potential place it properly for future development.
Aditya Birla Capital – Subscribe for the long run
Aditya Birla Capital has additionally assigned a ‘subscribe’ ranking for the long run, citing Hyundai’s sturdy parentage, leveraging of R&D capabilities, and its strong steadiness sheet.
LKP Securities – Subscribe for the long run
About Hyundai Motors India
Hyundai Motors India (HMIL), is part of South Korea primarily based the Hyundai Motor Group, which is the third largest passenger automobile (PV-OEM) producer globally as of CY23. HMIL has for lengthy been the second largest auto OEM within the home passenger automobile market by way of gross sales volumes. HMIL is amongst the highest three contributors to Hyundai Motor international gross sales volumes, with contribution rising from 15.5 per cent in CY18 to 18.2 per cent in CY23. HMIL’s portfolio consists of 13 fashions throughout main passenger automobile segments together with Grand i10, Aura, Verna, Exter, Venue, and Creta and many others.
First Printed: Oct 14 2024 | 12:34 PM IST
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