Hyundai IPO: How does HMIL compare with Tata Motors, Maruti Suzuki, M&M?

Hyundai Motor India IPO: How does Hyundai compare with Indian listed peers? Check key metrics here

Hyundai IPO: Hyundai Motor India will likely launch India's biggest initial public offer (IPO) as it aims to mop up Rs 25,000 crore in the Indian markets, reports suggest. Earlier, state-run Life Insurance Corporation (LIC) of India had raised Rs 21,000 crore via its IPO in 2022.

According to Hyundai Motor India's draft red herring prospectus (DRHP), Hyundai Motor India has been the second largest auto original equipment manufacturer (OEM) since fiscal year 2008-09 (FY09) in the Indian passenger vehicles market in terms of domestic sales volumes.

Hyundai Motor India, as per Society of Indian Automobile Manufacturers (Siam), sold 614,717 passenger vehicles in India in FY24, growing 8.3 per cent year-on-year (Y-o-Y).

At 14.6-per cent, Hyundai Motor India's domestic market share was the second-largest in India after Maruti Suzuki in FY24. MSIL, meanwhile, held a 41.7 per cent market share in FY24.

Hyundai Motor India financial performance

During the nine months ended December 2023, Hyundai Motor India posted revenue from operations worth Rs 52,157.9 crore, with profit for the period at Rs 4,382.87 crore.

Hyundai Motor India's Ebitda (earnings before interest, tax, depreciation, and amortisation) stood at Rs 6,610.7 crore for 9MFY24, commanding an Ebitda margin of 12.67 per cent.
 

The South Korean company's net worth was Rs 19,777.91 crore for the period.

As Hyundai Motor India launches in IPO, under the automobile segment, after a gap of 21 years (Maruti Suzuki India brought the last auto IPO in 2003), let's look at how the company fares versus other automobile companies:

Face value of shares:

According to Hyundai Motor India's DRHP, its share will have a face value of Rs 10 per share. By comparison, Maruti Suzuki India, and M&M have shares with face value of Rs 5 each, while the face value of Tata Motors' shares is Rs 2 per share.

Market Share price:

Hyundai Motors is yet to finalise the price band of its IPO.

However, the share price of its listed peer Maruti Suzuki India was Rs 12,851 per share as on June 17, 2024. The share price of M&M was Rs 2,927 per share, and that of Tata Motors was 993 per share as on Monday, June 17.

Revenue of Hyundai India vs peers

Hyundai Motor India's revenue from operations at the end of FY23 was the lowest among listed peers at Rs 60,307.58 crore.

Against this, Maruti Suzuki India reported revenue from operations worth Rs 117,571.3 crore at the end of FY23; Tata Motors Rs 345,966.97 crore; and M&M Rs 121,268.55 crore.

EPS of Hyundai India

Hyundai Motors India's earnings per share (EPS) stood at Rs 57.96 per share (diluted) at the end of FY23 vs Rs 271.82 (Maruti Suzuki); Rs 6.3 (Tata Motors); Rs 91.96 (M&M).

Hyundai Motors' P/E ratio

Since Hyundai Motors India's shares are not listed, the DRHP doesn't mention any P/E for the company.

Meanwhile, Maruti Suzuki, at the end of FY23, had a P/E of 47.28x as per Hyundai's DRHP; Tata Motors P/E was 150.09x; and M&M P/E was 30.32x.

At present, however, Maruti Suzuki P/E is 29.9x; Tata Motors P/E is 10.5x; and M&M P/E is 32.3x, as per ValueResearch.

Hyundai Motor Market Capitalisation

In the absence of any price band information, the likely market capitalisation of Hyundai Motors India is not available.

Its listed players, however, have market-cap in the range of Rs 3.3 trillion (Tata Motors) to Rs 4.04 trillion (Maruti Suzuki India), as of June 17, 2024.

Source: Hyundai Motor India DRHP