Hyundai Motor shares fall 2% as November sales plunge 7%
The domestic sales of 48,246 units and export sales of 13,006 units also came in lower by 2 and 10 percent, respectively.
Shares of Hyundai Motor India slipped over 2 percent to Rs 1,870 in morning trade on December 2 after the company reported a sharp decline in November sales. The drop comes despite it achieving the highest ever monthly rural contribution.
During the month, the Creta-maker registered total monthly sales of 61,252 units, lower by 7 percent from the same month last year when the company told over 65,000 units. The domestic sales of 48,246 units and export sales of 13,006 units also came in lower by 2 and 10 percent, respectively.
However, the overall contribution of SUVs to domestic sales remained robust at 68.8 percent in November 2024. Additionally, Hyundai Motor India Limited achieved its highest-ever monthly rural contribution of 22.1 percent, expanding its reach in India’s hinterland.
Last week, two international brokerages Morgan Stanley and JPMorgan initiated coverage on the stock with both dishing out an overweight rating.
JPMorgan highlighted Hyundai Motor as a strong bet on India’s passenger vehicle growth and premiumisation trend. The brokerage expects a recovery in the passenger vehicle sector to pick up in the second half of FY25, which would benefit Hyundai. It also pointed out that Hyundai’s premium product mix, with 68 percent of sales coming from SUVs, boosts its per-unit profitability, giving it an edge over its competitors.
In a similar vein, JPMorgan anticipates market share tailwinds working in Hyundai’s favour in the second half of this fiscal, primarily driven by its new capacity and models. The brokerage also noted that Hyundai’s 20 percent export contribution provides an added cushion against domestic market cyclicality. Additionally, JPMorgan expressed confidence in Hyundai’s capital expenditure efficiency, which it believes will be a key driver for the company’s higher Return on Capital Employed (RoCE).
At about 10 am, shares of the company were trading at Rs 1,899, lower by 1 percent. Hyundai Motor India shares have gained over 8 percent in the past month.
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