HYUNDAI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | HYUNDAI | Market Cap | 1,50,223 Cr. | Current Price | 1,849 ₹ | High / Low | 2,890 ₹ |
| Stock P/E | 28.2 | Book Value | 238 ₹ | Dividend Yield | 1.15 % | ROCE | 38.8 % |
| ROE | 30.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,892 ₹ | DMA 200 | 2,071 ₹ |
| Chg in FII Hold | -1.00 % | Chg in DII Hold | 1.12 % | PAT Qtr | 1,222 Cr. | PAT Prev Qtr | 1,195 Cr. |
| RSI | 50.6 | MACD | -14.2 | Volume | 19,25,148 | Avg Vol 1Wk | 19,46,141 |
| Low price | 1,658 ₹ | High price | 2,890 ₹ | PEG Ratio | 6.21 | Debt to equity | 0.06 |
| 52w Index | 15.5 % | Qtr Profit Var | -22.8 % | EPS | 65.5 ₹ | Industry PE | 27.7 |
📊 Core Financials
- Revenue Growth: Quarterly PAT at ₹1,222 Cr vs ₹1,195 Cr, showing modest growth but overall -22.8% variation YoY.
- Profit Margins: ROE at 30.3% and ROCE at 38.8% highlight strong profitability.
- Debt Ratios: Debt-to-equity of 0.06 reflects very low leverage.
- Cash Flows: Dividend yield of 1.15% provides moderate shareholder returns.
- Return Metrics: EPS of ₹65.5 demonstrates solid earnings power.
💹 Valuation Indicators
- P/E Ratio: 28.2 vs industry PE of 27.7, suggesting fair valuation.
- P/B Ratio: Price ₹1,849 vs book value ₹238, trading at ~7.8x book.
- PEG Ratio: 6.21, indicating expensive growth expectations.
- Intrinsic Value: Current price below DMA 50 (₹1,892) and DMA 200 (₹2,071), showing weak momentum.
🏢 Business Model & Competitive Advantage
Hyundai operates in automotive manufacturing, with strong global presence and brand recognition. Its competitive advantage lies in scale, innovation, and diversified product portfolio. Profitability metrics are strong, but valuations remain stretched relative to growth prospects.
📈 Entry Zone & Long-Term Guidance
Entry zone looks reasonable around ₹1,750–₹1,850 given RSI (50.6) and MACD (-14.2) showing consolidation. Long-term holding is viable due to brand strength and profitability, though caution is advised due to high PEG ratio and cyclical risks in the auto industry.
✅ Positive
- Strong ROE (30.3%) and ROCE (38.8%) reflect efficient capital use.
- Low debt-to-equity ratio (0.06) ensures financial stability.
- EPS of ₹65.5 highlights solid earnings profile.
⚠️ Limitation
- PEG ratio (6.21) highlights expensive growth expectations.
- Stock trading below DMA 200, reflecting weak technical momentum.
📉 Company Negative News
- FII holding decreased (-1.00%), showing reduced foreign investor confidence.
- Quarterly profit variation of -22.8% indicates pressure on margins.
📈 Company Positive News
- DII holding increased (+1.12%), showing strong domestic institutional support.
- Quarterly PAT improved sequentially from ₹1,195 Cr to ₹1,222 Cr.
🏭 Industry
The automotive industry is cyclical, driven by demand trends, EV adoption, and global economic conditions. Industry PE at 27.7 is close to Hyundai’s 28.2, suggesting fair valuation. Competitive pressures and raw material costs remain key challenges.
🔎 Conclusion
Hyundai demonstrates strong profitability and low debt but trades at premium PEG multiples. Entry around ₹1,750–₹1,850 is reasonable for investors seeking exposure to automotive growth. Long-term holding is recommended for brand strength and profitability, though caution is advised due to cyclical risks and stretched valuations.
Would you like me to also compare Hyundai with peers like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra to evaluate relative positioning in the automotive sector?