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Check Before You Invest : Hyundai Motor India Ltd

BSE: 544274 NSE: HYUNDAI ISIN: INE0V6F01027
  |   Sector:  Automobiles   |   Industry:  Automobiles - Passenger Cars

Snapshot

Q.1 Which industry/sub-sector does Hyundai Motor India Ltd belong to?
Hyundai Motor India Ltd belongs to the Automobiles sector, operating specifically within the Automobiles - Passenger Cars segment.
Q.2 Is Hyundai Motor India Ltd a good quality company?
Hyundai Motor India Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Hyundai Motor India Ltd undervalued or overvalued?
Hyundai Motor India Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 28.16 26.58
Price to Book 7.74 7.47
Price to Sales 2.22 2.24
EV to EBITDA 15.08 14.63
Q.4 Is Hyundai Motor India Ltd a good buy now?
Hyundai Motor India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Hyundai Motor India Ltd?
Hyundai Motor India Ltd revenue growth is -1.3% for FY-2025, which is below its 5-year CAGR of 9.5%, indicating slower growth.

Q.2 Gross Profit margin of Hyundai Motor India Ltd?
Hyundai Motor India Ltd Gross profit margin which is the profit after deduction of direct costs, is 14% for FY-2025, which is in line with its 5-year median of 14%, indicating stable margins.

Q.3 Operating Profit Margin of Hyundai Motor India Ltd?
Hyundai Motor India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.93% for FY-2025, which is in line with its 5-year median of 12.47% indicating stable margins.

Q.4 Net Profit Margin of Hyundai Motor India Ltd?
Hyundai Motor India Ltd Net Profit Margin is 8.12% for FY-2025, is in line with its 5-year median of 7.79%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 14 14
Operating Profit Margin (%) 12.93 12.47
Net Profit Margin (%) 8.12 7.79

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Hyundai Motor India Ltd?
Hyundai Motor India Ltd Return on Asset is 20.69%, which is above its 5-year historical median of 15.3%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Hyundai Motor India Ltd?
Hyundai Motor India Ltd Return on capital employed is 54.42% for FY-2025, which is above its 5-year historical median of 33.09%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Hyundai Motor India Ltd?
Hyundai Motor India Ltd Return on equity is 42.16% for FY-2025, which is above its 5-year historical median of 25.56%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Hyundai Motor India Ltd?
Hyundai Motor India Ltd Cash conversion cycle is -13 days, below its 5-year historical median of -10 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.55 1.96
ROE (%) 42.16 25.56
ROCE (%) 54.42 33.09
Cash Conversion Cycle -13 days -10 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Hyundai Motor India Ltd?
Hyundai Motor India Ltd Debt-to-Equity ratio is 0.05, which is above the industry average of 0.04, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Hyundai Motor India Ltd?
Hyundai Motor India Ltd Debt to cash flow from operations is 0.19, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Hyundai Motor India Ltd?

Q.1 Promoter shareholding and pledge status of Hyundai Motor India Ltd?
Promoters hold 82.50% of the Hyundai Motor India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Hyundai Motor India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Hyundai Motor India Ltd vs industry peers?
Hyundai Motor India Ltd revenue CAGR is 9.50%, compared to the industry median CAGR of 13.05%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -1.3 13.1
Gross Profit Growth (%) -7.8 20.5
Operating Profit Growth (%) -2.5 22.7
Net Profit Growth (%) -7.8 20.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.55 1.27
ROE (%) 42.16 14.44
ROCE (%) 54.42 17.4
Cash Conversion Cycle (days) -12.88 -24

Valuation & price assessment

Q.1 Stock return of Hyundai Motor India Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -1.28% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -1.3%
Q.2 Valuation ratios of Hyundai Motor India Ltd vs historical?
The current P/E ratio of 28.16 is higher than its historical median of 26.58, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 28.16 26.58 29.57
Price to Book 7.74 7.47 4.34
Price to Sales 2.22 2.24 2.57
EV to EBITDA 15.08 14.63 17.11

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