Hyundai Motor shares approach IPO price after gaining 20% from April lows. Will the rally hold up?

Mint

22-05-2025

Hyundai Motor India share price in focus: Hyundai Motor India's share price declined by 3% on Thursday, May 20, settling at ₹ 1,854 per share amid a broad-based sell-off in the Indian equity market. Despite the dip, the stock has been on a steady upward trajectory in recent weeks, rebounding sharply from its April 7 low of ₹ 1,541.
Since then, it has rallied nearly 20%, bringing it within close range of its IPO price of ₹ 1,960—just 5.4% below its latest trading value. Notably, the stock has yet to breach its IPO price since its market debut, despite multiple attempts that were met with resistance and pullbacks.
The highest level the stock has touched since listing was ₹ 1,929 per share, recorded in early February. As the stock once again attempts to breach its IPO price, Anshul Jain, Head of Research at Lakshmishree Investments, stated that the stock is forming a 142-day-long IPO base with a pivot breakout level at ₹ 1,935. However, he noted that the base lacks institutional accumulation and follows a sharp run-up, which makes the breakout zone potentially vulnerable.
"A breakout above ₹ 1,935 must be accompanied by significant volume to confirm bullish intent. Conversely, if the stock fails to sustain above ₹ 1,935, it could trigger long liquidation, dragging it down toward ₹ 1,750. Traders should wait for clear volume cues before initiating positions," he further added.
The company made its debut on Dalal Street in October 2024, listing at ₹ 1,934 per share against the IPO price of ₹ 1,960. Following the muted listing, the stock remained volatile, moving back and forth amid concerns over its rich valuations.
The company successfully raised ₹ 27,870 crore from Indian investors, marking the largest IPO fundraise in the country's history.
Following the announcement of the company's March quarter results on May 16, brokerage firms have retained their optimistic outlook on Hyundai Motor India. Motilal Oswal noted that the company remains well-positioned to benefit from the premiumization trend in India, given its strong SUV portfolio. It has maintained a 'buy' rating on the stock with a target price of ₹ 2,137 per share.
Kotak Institutional Equities raised its target price from ₹ 2,000 to ₹ 2,050 per share while retaining its 'buy' recommendation. The brokerage stated, 'We expect near-term demand trends to remain muted due to weak consumer sentiment, limited new launches, and a high base.'
However, it expects industry trends to improve from H2FY26E, with Hyundai Motor India likely to gain market share driven by new launches in the SUV and MPV segments across multiple powertrains. Similarly, Japanese brokerage firm Nomura also revised its target price upward to ₹ 2,291, maintaining its 'buy' rating.
CLSA and Macquarie have both assigned an 'outperform' rating, with target prices of ₹ 2,155 and ₹ 2,100 per share, respectively. The company reported a 4 per cent YoY dip in its consolidated profit after tax to ₹ 1,614 crore, while the revenue from operations rose by 1.52 per cent YoY to ₹ 17,940 crore.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.