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HYUNDAI - Fundamental Analysis: Financial Health & Valuation

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Rating: 4.1

Last Updated Time : 04 May 26, 11:58 am

Fundamental Rating: 4.1

Stock Code HYUNDAI Market Cap 1,47,687 Cr. Current Price 1,818 ₹ High / Low 2,890 ₹
Stock P/E 26.0 Book Value 209 ₹ Dividend Yield 1.16 % ROCE 54.2 %
ROE 42.2 % Face Value 10.0 ₹ DMA 50 1,937 ₹ DMA 200 2,106 ₹
Chg in FII Hold -1.00 % Chg in DII Hold 1.12 % PAT Qtr 1,195 Cr. PAT Prev Qtr 1,570 Cr.
RSI 44.6 MACD -29.1 Volume 5,38,287 Avg Vol 1Wk 9,14,609
Low price 1,658 ₹ High price 2,890 ₹ PEG Ratio 1.07 Debt to equity 0.05
52w Index 13.0 % Qtr Profit Var 6.30 % EPS 70.0 ₹ Industry PE 27.3

Positive

- Strong ROE (42.2%) and ROCE (54.2%) highlight excellent efficiency.

- EPS of ₹70.0 reflects robust profitability.

- Very low debt-to-equity ratio (0.05) ensures financial stability.

- Dividend yield of 1.16% provides moderate income.

- PEG ratio of 1.07 suggests fair valuation relative to growth.

- DII holdings increased (+1.12%), showing domestic institutional support.

Limitation

- Current price (₹1,818) below both 50 DMA (₹1,937) and 200 DMA (₹2,106), reflecting weak technical sentiment.

- RSI at 44.6 and MACD (-29.1) show bearish momentum.

- Quarterly PAT declined from ₹1,570 Cr. to ₹1,195 Cr. (-6.30%), raising concerns about earnings sustainability.

- FII holdings decreased (-1.00%), signaling reduced foreign investor confidence.

- Current price far below 52-week high (₹2,890), showing resistance at upper levels.

Company Negative News

- Decline in quarterly PAT impacts near-term sentiment.

- Weak technical indicators with price trading below key moving averages.

- Reduced foreign institutional participation adds pressure.

Company Positive News

- EPS remains strong at ₹70.0, supporting long-term fundamentals.

- Domestic institutional stake increased (+1.12%).

- Low leverage and strong efficiency ratios enhance investor confidence.

Industry

- Auto sector trading at industry P/E of 27.3, close to Hyundai’s 26.0, suggesting fair valuation.

- Sector growth driven by demand recovery, EV adoption, and exports.

- Hyundai’s competitive advantage lies in strong brand presence, diversified product portfolio, and global reach.

Conclusion

Hyundai demonstrates strong fundamentals with high efficiency, low debt, and fair valuation. However, weak technicals and declining quarterly profits limit short-term attractiveness.

Entry Zone: Attractive accumulation range between ₹1,800–₹1,830 near support levels.

Long-Term Guidance: Suitable for investors seeking exposure to auto with strong fundamentals. Expect steady returns with potential upside tied to sector recovery and EV expansion.

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