Hyundai Motor India Limited - HMIL

Stock Opportunities
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If someone asks me what is the motivating force for Hyundai,
I would have a ready answer: a desire for better.
_Chung Ju-Yung, Founding Chairman

Hyundai Motor is a South Korean multinational automotive manufacturer and headquartered in Seoul South Korea, which was founded in 1967.

Currently, the company owns 33.88 percent of Kia Corporation and fully owns two marques including its luxury cars subsidiary, Genesis and their electric vehicle brand Ioniq.

In 1996, Hyundai Motor India Limited was established with a production plant in Irungattukottai near Chennai.

HMIL’s first car, the Hyundai Santro was launched on 23 September 1998 and was a runaway success. Within a few months of its inception, HMIL became India’s second-largest automobile manufacturer and the largest automobile exporter. Hyundai Motor India Limited (HMIL) is a wholly-owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India.

As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more than 87 countries. It has been the number one exporter of passenger cars in the country for the eighth year in a row.

Hyundai Motor India is the second-largest auto OEM in the Indian passenger vehicle market since fiscal 2009.

HMIL has an extensive sales and service network across India, with 1,366 sales outlets and 1,550 service outlets as of 31 December 2023. This network is next only to market leader Maruti Suzuki and ensures wide reach and customer support across rural and urban areas.

2023 Sales Volume by Region

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2023 Sales by Vehicle Type

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Last 5 Months Sales - India

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Financial Information

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Biggest IPO ever in Indian history

Hyundai Motor India has received approval from Sebi for its ₹25,000-crore IPO, set to be the largest in India’s history and could surpass previous records held by LIC and Paytm.

Offer For Sale : 14,21,94,700 shares (representing a 17.5% stake, by its South Korean parent, Hyundai Motor Co.) It aims to reach a valuation of $30 billion.

Tentative date
Open: 16th October 2024
Close: 18th October 2024
Allotment: 21st October 2024
Listing : 23rd October 2024
Retail Allocation : 35%

5 Likes
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I am going to be very cautious and sceptical. Hyundai wants to take advantage of the IPO frenzy… that’s it.

For me, this IPO is outright crazy if not outrageous - if 100% OFS was not enough, the Korean promotors are expecting mind boggling premium when compared to Indian peers and Korean listed Hyundai Motors (mcap $47.5 Bn)

Btw… Korean Hyundai Motors is trading at meager PE of 5x and rich dividend distribution of 6% to Hyundai mothership

Hyundai Motor Group, the mothership, is third-largest South Korean chaebol (after Samsung and SK Group), and related to other Hyundai-name industries.

5 Likes
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If this is your fundamental analysis of the stock, then you should have posted a complete study including the risk factors.

1 Like
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Thanks for your feedback. I am still in the learning phase so I will try to update myself and fundamental analysis as I learn.

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Hyundai Motor recorded total sales of 64,201 units in September 2024, with domestic sales reaching 51,101 units and exports accounting for 13,100 units. Reported around 10 % YoY declined as the company sold a total of 71,641 units in September 2023.

Hyundai Motor India reported around 6 per cent dip to 51,101 units last month from 54,241 units in the year-ago period.

In September, Hyundai introduced new Hyundai Alcazar 6/7 seater SUV.

Highest ever monthly SUV contribution of 70% to total sales from from Exter, Venue and Creta.

Dual Cylinder CNG in Exter and Grand i10 NIOS resulting in highest-ever CNG contribution of 13.8% to September sales.

Hyundai Motor Company marked a major milestone by the production of 100 million vehicles globally, achieved in 57 years since its foundation.

Monthly Sales Update, India

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IPO Updates

Open : 15th Oct. 2024
Close : 17th Oct. 2024
Allotment : 18th Oct. 2024
Listing: 22nd Oct. 2024
Price band: 1900-1960

Lot Size, Retail : 7 shares (213720)
Lot Size, SHNI : 105 shares (205800)
Lot Size, BHNI: 511 shares (1001560)

Registrar : KFIN Technologies Limited

7

Hyundai IPO valued more than Maruti & Mahindra & Mahindra

Given a choice I would rather put my bucks in Mahindra and Maruti rather than subscribing to IPO of Hyundai.

(1) Maruti enjoys market leadership position for last 40 years. Today even with so many players including many MNC’s brands, Still Maruti enjoys 41% Market share. ( Hyundai just 14%).
Maruti’s wide product range with leadership position in growing CNG and SUV market.( CNG volumes now stands at 40% of its total volume)…
Maruti and Toyota produce Hybrids which also enjoys leadership position. Maruti did not prioritise EV introduction strategically. But now they have EV in pipelines.

Even on EV, Tata motors leading with 60% market share.
Hyundai is no where in EV and they have just started CNG aiming to produce only 12% of its volume where Maruti has already reached 40% of its total volume.

(2) (a) Mahindra & Mahindra is putting up a heavy competition with Maruti with respect to the growing SUV market.
M&M, which has Ten SUVs well accepted by the market (Bolero, Bolero Neo, Scorpio, Scorpio N, Scorpio Classic, Thar, XUV3XO, XUV400 XUV700, New Thar Roxx), is extremely well placed to capitalise on the surging demand of SUV.

(b) It also has a Well designed and matured EV program and CNG program.

(c) Apart from its SUV’s, it has a market leadership position in Small / light commercial vehicle which is growing faster than heavy CV.

(d) It has market leadership position in its 3 wheeler EV / CNG

(e) it is the market leader in tractor segment with 42% market share.

(f) In sept 2024, it is the only Auto company which has shown growth in numbers.

(g) Mahindra is perhaps is the only Indian Auto company which exports its products to North America.

Therefore Mahindra & Mahindra is a well diversified automobile company than any other auto company…if one segment does not do well due to market situation , the other one would come to its rescue.

Discl:
I have investments in Mahindra and Maruti from lower level. I may be biased. please do your own assessment before investing.
I may be wrong in my assessment, though I have 36 yrs exposure to Auto industry.