HYUNDAI - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 4.3

📊 Core Financials:

- Quarterly PAT at ₹1,570 Cr vs ₹1,336 Cr previously → strong growth (17.4% variation).

- Excellent profitability with ROCE at 54.2% and ROE at 42.2%.

- Debt-to-equity ratio at 0.05 → virtually debt-free.

- Cash flows remain robust, supported by consistent earnings and dividend yield of 0.92%.

💹 Valuation Indicators:

- Current P/E: 33.5 vs Industry P/E: 33.9 → fairly valued.

- P/B ratio: ~11.1 (₹2,317 / ₹209) → premium valuation.

- PEG ratio: 1.38 → slightly stretched valuation relative to growth.

- Intrinsic value appears close to CMP, suggesting balanced pricing.

🏢 Business Model & Competitive Advantage:

- Hyundai operates in automotive manufacturing with strong presence in passenger vehicles and EVs.

- Competitive advantage lies in brand strength, global scale, and innovation in electric and hybrid vehicles.

- Market cap of ₹1,88,241 Cr reflects leadership in the automobile sector.

📈 Entry Zone & Long-Term Guidance:

- CMP ₹2,317 is slightly below DMA 50 (₹2,353) but above DMA 200 (₹2,196), showing mild weakness.

- RSI at 43.2 and MACD negative → near oversold zone.

- Suggested entry zone: ₹2,200–₹2,300.

- Long-term holding recommended due to strong fundamentals, global brand positioning, and growth in EV adoption.

Positive

• Strong ROCE (54.2%) and ROE (42.2%).
• Debt-free balance sheet (Debt-to-equity 0.05).
• Quarterly PAT growth of 17.4%.
• FII holdings increased by 0.26%.

Limitation

• P/B ratio ~11.1 indicates premium valuation.
• PEG ratio of 1.38 suggests stretched valuation relative to growth.
• Dividend yield at 0.92% is modest.

Company Negative News

• DII holdings reduced by -0.02%.
• Stock trading below DMA 50 with negative MACD, showing short-term weakness.

Company Positive News

• Quarterly PAT improved from ₹1,336 Cr to ₹1,570 Cr.
• FII holdings increased by 0.26%.

Industry

• Automobile industry is growing with strong demand for EVs and hybrid vehicles.
• Industry P/E at 33.9 indicates sector is moderately valued, in line with Hyundai’s P/E of 33.5.

Conclusion

⚖️ Hyundai is financially strong with excellent return ratios, low debt, and consistent profit growth. Valuations are fair compared to industry peers, though P/B remains high. Entry is favorable around ₹2,200–₹2,300 for long-term investors, with potential for sustained growth driven by EV adoption and global brand strength.