Hyundai Motor India hits over 2-month high; surges 5% on heavy volumes

Thus far in February 2025, the stock surged 15% after the company registered a 10.5% YoY growth in exports in January 2025 on the back of stable demand for its products in the overseas markets.

Shares of Hyundai Motor India (HMI) hit an over two-month high at Rs 1,928.80, as they surged 5 per cent on the BSE in Friday’s intra-day trade amid heavy volumes in an otherwise subdued market. In the past seven trading days the stock price of the country’s second-largest passenger carmaker rallied 19 per cent.

 

HMI was seen trading at its highest level since November 29, 2024. It had hit a 52-week high of Rs 1,968.80 on the listing day i.e. October 22, 2024. The company raised Rs 27,870 crore through initial public offering (IPO) - India’s largest ever - issued equity shares at price of Rs 1,960 per share.

 

 

At 01:44 PM; HMI was trading 4 per cent higher at Rs 1,896.10, as compared to 0.26 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped over five-fold. A combined 2.27 million equity shares changed hands on the NSE and BSE.

 

Thus far in the month of February 2025, HMI has outperformed the market by surging 15 per cent after the company registered a 10.5 per cent year-on-year (YoY) growth in exports in January 2025 on the back of stable demand for its products in the overseas markets. 

 

The up move in stock price has also been attributed to the direct-tax cut announced during the Budget 2025, which would understandably be the key takeaway for the auto sector. Analysts see a larger benefit for segments and companies that usually see a higher share of salaried employees as customers. Accordingly, entry-segment cars and premium motorcycles could see a higher benefit from the changes in the direct-tax rates, they said.

 

Meanwhile, HMI is confident about its growth trajectory and is committed to drive long-term value for its stakeholders. The company has a positive outlook on growing electric vehicle (EV) penetration in India and is headed towards electrification with a holistic approach. 

 

The company believes that the newly launched CRETA Electric will drive phenomenal success, build strong momentum and will be a game-changer in the EV landscape. The company is also building a strong EV ecosystem in India like localization, charging infrastructure, etc. and along with 3 more EVs planned in due time, the company is expected to greatly contribute to India’s EV growth story.

 

The company will also look to explore opportunities in alternate eco-friendly powertrains. With access to HMC’s global powertrain technologies like hybrids, hydrogen, flex fuel etc., the company believes it is well placed to adapt to any change in demand dynamics and regulatory environment.

 

HMI continues to expect a low single-digit domestic industry growth in FY25, on a high base; exports are seen as stable in the short term, with healthy outlook over the mid-to-long term, backed by product introductions and HMI being a hub globally for emerging markets like the Middle East, Latin America, and Africa. Also, HMI remain focused on driving premiumization and has the agility to evolve as per customer preference or regulatory requirement toward alternative powertrains, analysts at Emkay Global Financial Services said.

 

Industry growth for domestic passenger vehicle (PV) in FY26F is expected to be in low single digits due to market stabilization after recent high-growth years. Factors like potential lowering of interest rates, improved rural demand, and better market sentiment are considered as positive drivers for the industry outlook, analysts at InCred Equities said in the company update.