Hyundai Motor India’s stock down 7 pc from issue price, company sales flat in Oct
New Delhi, Nov 5 (IANS) The country’s largest IPO, Hyundai Motor India, has disappointed investors to date.
The stock has been continuously declining since its public listing and on Tuesday, the stock closed at Rs 1,829, which is about 7 per cent below the issue price of Rs 1,960.
The reason for the weak performance of Hyundai Motor India’s stock is the lack of growth in the company’s sales.
In October, the company sold 55,568 vehicles in the domestic market. It grew by just 0.80 per cent on an annual basis, which is much less than the average growth of the market (which was 1.82 per cent).
In the same period last year, the company had sold 55,128 vehicles.
Hyundai Motor India’s stock was listed on October 22. The stock was listed at Rs 1,931 with a decline of 1.47 per cent. Since then, the stock has been witnessing a continuous downside.
Hyundai Motor India’s Rs 27,870 crore IPO received a mixed response from investors. The IPO received more than double the subscription.
Hyundai Motor India is the second largest car company in the country after Maruti Suzuki India. The company’s market share was around 14 per cent in June 2024. In the financial year 2023-24, the company sold 7.77 lakh vehicles, out of which 21 per cent were exported to countries like Latin America, Africa, the Middle East, and Europe.
Hyundai Motor India has 1,550 service outlets and 1,366 sales outlets in the country. Hyundai Motor India’s revenue in FY 2023-24 was Rs 69,829 crore. During this period, the company had a profit of Rs 6,060 crore and the margin of the company was 13.1 per cent. In the June quarter of the financial year 2024-25, the company’s revenue was Rs 17,344 crore. During this period, the company had a profit of Rs 1,489 crore and the margin was 13.5 per cent.
–IANS
avs/na/vd
