Hyundai Motor India Ltd. made its highly anticipated debut on the stock market on October 22, 2024. However, the initial enthusiasm faded quickly as the shares dropped by over 3% soon after listing. The stock opened at ₹1,934 on the National Stock Exchange (NSE) and ₹1,931 on the Bombay Stock Exchange (BSE), representing a 1.5% discount from the issue price of ₹1,960.
Current Market Sentiment
The grey market premium (GMP) for Hyundai Motor shares has seen fluctuations, currently sitting at 2%, which translates to a premium of approximately ₹48 over the issue price of ₹1,960. This decline from an earlier peak of 5% indicates a shift in investor sentiment as the stock approaches its debut on the Indian stock exchanges.
Expert Insights
Shivani Nyati from Swastika Investmart anticipates a steady debut for Hyundai, noting that while immediate listing gains may be modest, the company’s robust fundamentals make it an attractive long-term investment. “The IPO valuation seems fully priced,” she remarked, adding that since the issue is a complete offer for sale (OFS), the company will not receive any proceeds from the offer.Sagar Shetty, a research analyst at StoxBox, recommends that investors who have been allocated shares should hold onto them and closely monitor the company’s performance in the upcoming quarters. He emphasizes that this approach allows investors to benefit from potential future growth as market conditions stabilize.
Should Investors Buy or Sell?
For those who have received allocations in Hyundai’s IPO, experts advise a cautious approach. Prashanth Tapse from Mehta Equities suggests that investors should not expect quick profits on the listing day and recommends a “Hold” strategy despite short-term volatility in demand and supply within the sector.For non-allottees, Tapse advises waiting for the price to settle before making any purchases. He believes that Hyundai’s growth story remains intact and aligns well with India’s economic growth trajectory.
Analyst Recommendations
Analysts have generally given a ‘Subscribe’ rating to Hyundai’s IPO due to its steady growth prospects amid industry tailwinds and robust financials. Macquarie has initiated coverage with an “Outperform” rating and a target price of ₹2,235, indicating a potential upside of about 14% from the issue price.On the other hand, Shashank Kanodia from ICICI Direct suggests that if held for over a year, returns could reach “double digits,” particularly given Hyundai’s strong position in the SUV market.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Investors should conduct their own research before making investment decisions.
