Hyundai Motor below 15% in 5 moths; Experts see the opportunity to buy – still why

Expanding the loss in the second consecutive season, Hyundai Motor’s share price decreased by 0.63 percent. 1,663.05 Tuesday, Hyundai Motor India opened at the price of shares on Tuesday, March 11 1,659.80 compared to its previous shutdown 1,673.65 and did unstable trading during the season, increased by about 1 percent 1,686 and fall down to more than 1 percent 1,655.30.

Hyundai Motor India share price trend

Hyundai Motor India So far this year, the stocks have fallen by about 8 percent. stock Started On 22 October last year. By around March 11, it is 15 percent lower than the price of its issue. 1,960.

Hyundai motor stocks hit their all -time high 1,968.80 and all-time low on Listing Day 1,610.15 on 29 January this year.

Experts turn on Hyundai Motor India Stock

Many experts appear positive about this automobile stock, which is mainly due to better franchise and recent improvement in stock price supported by strong parentage.

Brokerage firm Nirmal Bang Equality has introduced coverage on stock with a recommendation of a purchase, pegging on target price 2,111. This means the stock is expected to be reverse of 27 percent from March 11. 1,663.05.

“We believe that Hyundai Motor India is a strong franchise, with a diverse portfolio, which addresses about 87 percent of the market of PV (passenger vehicle) market, which is spread over fuel types and segments,” said Nirmal Bang.

“In the last three decades, it has become a healthy player, which is 34 percent, 20 percent and 18 percent stake with a healthy market share, the middle -sized SUV, compact SUV and premium compact car segments respectively. We remain creative on Hyundai Motor India.

Nirmal Bang said Hyundai Motor India has been a pioneer in running innovation in the Indian motor vehicle landscape, supported by Hyundai Motor Company’s formidable technical and financial power.

In addition, the brokerage firm sees abundant export opportunities for the company.

“Over 21-24 Hyundai Motor India has increased its export revenue in CAGR of 25 percent. Hyundai Motor Company has planned to use Hyundai Motor India, which is one of the largest foreign production bases to target emerging markets such as South East Asia, Latin America, Africa and Middle East,” said Nirmal Bang.

The brokerage firm expects 5.6 percent and 11.2 percent and revenue CAGR on FY25-FY27E respectively. It is also expected to have an increase of 120bps on FY27E 13.6 percent of Ebitda margin, which can take EPS CAGR up to 18 percent.

In addition, Nirmal Bang hopes that ROE (return to equity) and ROCE (return to work on capital) 34.8 percent and 34.2 percent respectively, 42.4 percent and 40.7 percent respectively, due to the pressure of caps planned on the return ratio in FY 25, respectively, due to the pressure of caps planned.

“We are in line with our closest colleague, Maruti Suzuki, despite its growth profile, as we believe that Hyundai Motor India beat Maruti Suzuki over factors of technical capabilities, better financial matrix and premium brand perception.”

While the fundamental factors of stock make it an attractive purchase at the current turn, technical indicators also appear favorable.

Jigar S, Senior Manager of Equity Research in Anand Rathi Share and Stock Brokers. Patel said that Hyundai Motor India trades over a major support area over India trades 1,600–1,610, align with S1 monthly axis. Additionally, a rapid bat pattern is close to completion 1,646, strengthening capacity for a reversal.

“Given this setup, anyone can consider catching or adding positions 1,610-1,640 range, feared to move towards an upside down 1,750. A stop loss should be placed below 1,570 to manage risk. The confluence of technical factors suggests a favorable risk-inam setup, making the region an attractive purchase opportunity for traders watching the potentially rapid upsurge, “Patel said.

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Disclaimer: This story is only for educational purposes. The above views and recommendations belong to individual analysts or broking companies, not mint. We recommend investors to investigate with certified experts before taking any investment decisions.