Hyundai Motor Share Price Hit New Low, Down 21% from IPO Price

Hyundai Motor India (HMI) shares fell 3% to a new low of ₹1,555.80 on the NSE during Tuesday’s intraday trade, despite an overall positive market trend. At 10:56 AM, the stock was down 2%, while the Nifty 50 was up 1%. Nearly 1 million shares were traded on the NSE and BSE combined.

HMI had launched India’s largest IPO last year, raising ₹27,870 crore. With the recent decline, the stock is now 21% below its issue price of ₹1,960. It had hit a 52-week high of ₹1,968.80 on its listing day, October 22, 2024.

Market Share Decline

HMI has underperformed compared to its peers, losing 100 basis points of domestic market share in the first 9 months (April-December) of FY25. In the past month, the stock dropped 14%, while the Nifty 50 fell just 1%.

Disappointing Q3 Earnings

For Q3 FY25 (October-December 2024), HMI’s consolidated net profit fell 19% YoY to ₹1,161 crore. Revenue from operations declined 1.3% YoY to ₹16,648 crore. The EBITDA margin contracted to 11.27% from 12.88% a year ago, falling 161 basis points YoY and 151 basis points sequentially due to higher expenses, including one-time employee costs.

Company’s Outlook and Challenges

Despite short-term struggles, HMI remains optimistic about long-term growth, focusing on electric vehicles (EVs) and a transition towards electrification. 

Industry Outlook

Following years of high growth, industry growth for domestic passenger vehicles (PV) in FY26 is expected to be in the low single digits. However, factors such as lower interest rates, rising rural demand, and improved market sentiment could support the industry in the long run.

Conclusion

Despite short-term struggles, Hyundai Motor India remains focused on long-term growth through EV expansion. However, market share challenges and cost pressures may impact recovery.

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