Hyundai Motor India Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Sep 17
- 2 min read
by KarNivesh | 17 September, 2025
Hyundai Motor India Limited (HMIL) has been a major player in India’s automotive industry since 1996. As a wholly-owned subsidiary of Hyundai Motor Company, it stands as the country’s second-largest passenger vehicle manufacturer and the largest exporter. Following its historic IPO in October 2024—India’s largest ever—the company has been trading at premium valuations, reflecting investor confidence in its strong performance and growth prospects.
Strong Market Presence
HMIL commands about 14% market share as of FY25, supported by popular models like the Creta SUV, i20, Venue, and the premium electric IONIQ 5. Its Chennai plant, with 824,000 units of annual capacity, and the upcoming Talegaon facility (adding 250,000 units by FY26) position the company well for future growth.
Exports are a key strength, with Hyundai being India’s largest passenger vehicle exporter since 2005. In FY25, export volumes stood at 1.63 lakh units, supplying cars to more than 87 countries, including Latin America, Africa, and the Middle East.
Financial Performance
Hyundai’s financial growth has been robust. Revenue rose from ₹40,767 crores in FY20 to ₹69,829 crores in FY24, though FY25 saw a slight dip to ₹69,193 crores due to softer domestic demand. Profitability remains a highlight—net profit jumped from ₹13,830 crores in FY20 to ₹60,600 crores in FY24 before moderating to ₹56,400 crores in FY25. With a 16.2% profit margin, Hyundai is far ahead of industry averages.
However, the EBITDA margin fell from 20.8% in FY24 to 12.9% in FY25, reflecting operational challenges. In Q4 FY25, revenue touched ₹17,940 crores (up 1.52% YoY), but net profit dropped 3.75% to ₹1,614 crores, underlining rising competitive pressures.
Valuation and Investor Confidence
HMIL trades at a premium, with a price-to-earnings ratio of 38.32x—well above Tata Motors (12.14x) and even Maruti Suzuki (33.02x). Its return on equity of 42.16% and return on capital employed of 54.08% highlight its efficiency in generating profits, justifying the high valuations.
The shareholding structure reflects strong promoter control, with Hyundai Motor Company holding 82.5%, while FIIs (7.08%) and mutual funds (6.02%) demonstrate institutional trust. Retail participation remains limited at 2.66%.
Challenges Ahead
Despite its strong position, Hyundai faces a few hurdles. Market share has declined from 17.5% in FY20 to 14% in FY25, largely due to Tata Motors and Mahindra capturing SUV demand with competitive pricing and new launches. In the EV space, Hyundai has just a 3.5% market share, while Tata dominates the segment.
Hyundai’s ambitious EV roadmap includes launching six new electric models by 2030, local battery partnerships, and 600 fast-charging stations. Success in this area is vital to counter competition and capture future demand.
Conclusion
With minimal debt (debt-to-equity ratio at 0.05), strong exports, premium branding, and global R&D support from Hyundai Motor Company, HMIL presents a solid long-term story. However, risks include declining domestic share, premium valuation sensitivity, and execution challenges in EVs.
HMIL is an attractive choice for long-term investors willing to bet on India’s automotive growth and Hyundai’s global expertise, but it requires careful monitoring of its EV strategy and competitive positioning.
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