Hyundai IPO: Factors to Consider Before You Invest!

Hyundai Motor India stands out with superior free cash flow generation, defying the norm in the car industry.

Royalty Payout Increase

Hyundai's new royalty agreement increases payout by 100 bps to 3.5%, aligning closer to Maruti Suzuki’s rate.

Capacity Expansion

Hyundai's new Talegaon plant adds 170,000 units, pushing total capacity to 994,000 units by FY27.

Used Car Growth

Hyundai's pre-owned car sales jumped 79% from FY21 to FY24, showing robust growth compared to new car sales.

Supplier Concentration

Hyundai relies on a few key suppliers, with the top 10 providing 58% of parts by value, increasing risk.

Government Incentives

Hyundai benefits significantly from government incentives, contributing 14% to its operating profit in FY24.

Currency Risk

Hyundai has minimal currency risk, with EPS impact limited to ±1% from a 5% rupee fluctuation against the USD.