Hyundai Motor India Stock: In-Depth Analysis (August 2025)
1. Business Overview
Hyundai Motor India Ltd, established in 1996, is India’s second-largest passenger vehicle manufacturer with popular models including:
- Creta (SUV)
- Verna (Sedan)
- Venue (Compact SUV)
- i20 (Hatchback)
The company operates multiple production facilities with 1,500+ touchpoints across India, commanding ~16.7% market share in passenger vehicles.
2. Financial Strength & Valuation
| Metric | Value | Sector Avg |
|---|---|---|
| Current Price (Aug 2025) | ₹2,418 | – |
| Market Capitalisation | ₹1,96,480 Cr | – |
| P/E Ratio (TTM) | 35.6 | 31.76 |
| P/B Ratio | 14.53 | 4.12 |
| ROE | 34.61% | 18.92% |
| Debt to Equity | 0.05 | 0.54 |
Key Financial Highlights
- Superior Profitability: ROE of 34.83% (5-year avg: 28.6%) significantly outperforms sector
- Low Leverage: Debt/Equity of just 0.05 provides financial flexibility
- Dividend Track Record: Consistent payouts with current yield of 0.87%
3. Growth & Profitability Trends
Annual Performance (₹ Crore)
| Indicator | FY2025 | FY2024 | Growth (%) |
|---|---|---|---|
| Total Revenue | 70,062.9 | 71,302.3 | -1.74 |
| Net Profit | 5,640.2 | 6,060.0 | -6.93 |
| Operating Margin | 11.15% | 12.02% | -87 bps |
| EPS (₹) | 69.41 | 74.58 | -6.93 |
4. Peer Comparison (Automobile Sector)
| Company | Price (₹) | P/E | ROE (%) | Debt/Equity |
|---|---|---|---|---|
| Hyundai Motor | 2,418 | 35.6 | 34.61 | 0.05 |
| Maruti Suzuki | 14,050 | 30.4 | 15.06 | 0.00 |
| M&M | 1,758 | 30.98 | 16.78 | 1.57 |
| Tata Motors | 883 | 11.78 | 23.96 | 0.54 |
5. Shareholding Pattern (July 2025)
6. Future Outlook & Analyst Views
Price Targets
- Consensus Target: ₹2,345 (3% upside from current)
- High Estimate: ₹2,600
- Low Estimate: ₹1,700
Sentiment Analysis
| Recommendation | No. of Analysts |
|---|---|
| Strong Buy | 12 |
| Buy | 8 |
| Hold | 2 |
| Sell | 1 |
7. Risk Assessment
- Premium valuation (P/E 35.6 vs sector 31.76) may limit upside
- Recent revenue contraction could signal demand pressures
- Auto sector cyclicality and EV transition risks
- Strong brand and distribution network
- Sector-leading profitability metrics
- Low debt provides acquisition/expansion flexibility
Conclusion
Hyundai Motor India represents a high-quality automotive stock with superior profitability (ROE 34.61%) and financial strength (Debt/Equity 0.05). While FY25 saw modest contraction, the company’s market position, institutional confidence (82.5% promoter holding), and efficient operations justify premium valuations. The stock appears suitable for long-term investors comfortable with current valuations, though near-term upside may be limited to 3-6% based on consensus targets.
Last Updated: August 18, 2025 | Data Sources: NSE, BSE, Company Filings, Analyst Reports
