HYUNDAI - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 4.2
| Stock Code | HYUNDAI | Market Cap | 1,78,104 Cr. | Current Price | 2,190 ₹ | High / Low | 2,890 ₹ |
| Stock P/E | 31.3 | Book Value | 209 ₹ | Dividend Yield | 0.96 % | ROCE | 54.2 % |
| ROE | 42.2 % | Face Value | 10.0 ₹ | DMA 50 | 2,286 ₹ | DMA 200 | 2,217 ₹ |
| Chg in FII Hold | -0.91 % | Chg in DII Hold | 0.86 % | PAT Qtr | 1,195 Cr. | PAT Prev Qtr | 1,570 Cr. |
| RSI | 39.9 | MACD | -35.2 | Volume | 8,97,487 | Avg Vol 1Wk | 7,67,244 |
| Low price | 1,542 ₹ | High price | 2,890 ₹ | PEG Ratio | 1.29 | Debt to equity | 0.05 |
| 52w Index | 48.1 % | Qtr Profit Var | 6.30 % | EPS | 70.0 ₹ | Industry PE | 32.0 |
📊 Analysis: Hyundai shows strong fundamentals with ROE (42.2%) and ROCE (54.2%), supported by a debt-light balance sheet (0.05). Valuations are fair with a P/E of 31.3 compared to industry average of 32.0, and PEG ratio (1.29) suggests growth is reasonably priced. Dividend yield (0.96%) provides modest income support. Current price (₹2,190) is below both 50 DMA (₹2,286) and 200 DMA (₹2,217), reflecting short-term weakness. RSI (39.9) indicates oversold conditions, while MACD (-35.2) shows bearish sentiment. The ideal entry zone lies between ₹2,050–₹2,150 for long-term investors. If already holding, maintain positions for 3–5 years, leveraging strong profitability and sector growth, but consider partial profit booking near ₹2,800–₹2,890 resistance levels.
✅ Positive
- Exceptional ROE (42.2%) and ROCE (54.2%) highlight superior capital efficiency.
- Low debt-to-equity ratio (0.05) ensures financial stability.
- EPS at ₹70.0 provides a strong earnings base.
- DII holdings increased (+0.86%), reflecting domestic institutional confidence.
⚠️ Limitation
- Dividend yield (0.96%) is modest despite strong profitability.
- Quarterly PAT declined (₹1,195 Cr vs ₹1,570 Cr), showing margin pressure.
- Stock trading below DMA levels, showing weak near-term momentum.
📉 Company Negative News
- Decline in FII stake (-0.91%), showing reduced foreign investor confidence.
- MACD (-35.2) indicates weak near-term momentum.
📈 Company Positive News
- EPS strength supports long-term valuation.
- Strong ROE and ROCE highlight operational efficiency.
- Volume stability (8.9L vs avg 7.6L) shows consistent investor interest.
🏭 Industry
- Automobile sector benefits from rising demand and global expansion.
- Industry PE (32.0) is aligned with Hyundai, suggesting fair sector valuations.
🔎 Conclusion
Hyundai is a fundamentally strong company with exceptional profitability and low debt, making it a solid candidate for long-term investment. Ideal entry is around ₹2,050–₹2,150. Existing holders should maintain positions for 3–5 years, leveraging growth and dividends, while booking profits near ₹2,800–₹2,890 resistance levels.
Would you like me to extend this with a peer benchmarking overlay (Maruti Suzuki, Tata Motors, Mahindra & Mahindra) so you can compare Hyundai’s valuation and profitability against its closest automobile peers?