HYUNDAI - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of Hyundai Motor India Ltd (HYUNDAI), with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and incorporated the latest financial updates from September 2025

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📊 Fundamental Analysis of Hyundai Motor India

🔍 Core Financials

Profitability

PAT Qtr: ₹1,336 Cr vs ₹1,583 Cr — decline of 7.74%, but annual PAT remains strong at ₹5,640 Cr

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EPS: ₹66.2 — robust earnings base.

ROE: 42.2%, ROCE: 54.2% — exceptional capital efficiency, among the best in the auto sector.

Leverage & Liquidity

Debt-to-equity: 0.05 — virtually debt-free, highly resilient.

Dividend Yield: 0.77% — modest, with ₹21/share dividend declared in August 2025

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Cash Flow

Annual revenue for FY25: ₹69,192 Cr, slightly down from ₹69,829 Cr in FY24 — stable top line

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Operating margins remain healthy, supported by strong domestic and export volumes.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 41.1 Fairly valued vs industry PE of 41.2

P/B Ratio ~14.0 Premium valuation, justified by high ROE

PEG Ratio 1.70 Slightly elevated — growth priced in

Intrinsic Value ~₹2,500–₹2,600 Close to current price — limited upside

🚗 Business Model & Competitive Edge

Segment Leadership: Second-largest carmaker in India, with strong presence in compact SUVs and EVs.

Moat: Brand strength, wide dealer network, and R&D-backed innovation.

Growth Drivers

EV expansion via Ioniq and Creta EV platforms.

Export strength and localization of premium models.

Wage settlement pact ensures labor stability and productivity boost

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📈 Technical & Entry Guidance

Current Price: ₹2,721

DMA 50/200: ₹2,350 / ₹2,031 — strong uptrend.

RSI: 73.3 — overbought zone.

MACD: 93.5 — bullish momentum.

🎯 Entry Zone

Ideal Buy Range: ₹2,500–₹2,600 — wait for minor correction.

Stop Loss: ₹2,400

Target: ₹2,950–₹3,100 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, brand moat, and sector tailwinds justify long-term holding.

Buy on dips: Especially near ₹2,600 zone.

Growth Triggers: EV rollout, export growth, and premium segment penetration.

⭐ Fundamental Rating

4.5

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