### 2. **Industry Overview and Future Outlook** ????
- **Indian Passenger Vehicle Market**: ???? The market continues to show robust growth, driven by factors such as increased urbanization, rising disposable incomes, and a focus on electric mobility. Government incentives such as the Production-Linked Incentive (PLI) scheme support future growth prospects.
- **EV Segment**: ???? HMIL is well-positioned with its growing EV portfolio, aiming to capture market share in this high-potential segment.
### 3. **Peer Comparison** ???? (Hyundai, Maruti Suzuki, Tata Motors)
| **Company** | **Revenue (FY 2024)** ???? | **Revenue Growth (YoY)** ???? | **Profit Margin** ???? | **Debt-to-Equity Ratio** ???? | **ROE** ???? |
|-----------------------|--------------------------|-----------------------------|----------------------|-----------------------------|----------------|
| **Hyundai Motor India**| ₹698.29 billion | 15.79% | 8.50% | 0.07x | 56.82% |
| **Maruti Suzuki** | ₹1,418.58 billion | 20.64% | 9.24% | 0.0004x | 15.75% |
| **Tata Motors** | ₹4,379.28 billion | 26.57% | 7.17% | 0.46x | 36.98% |
#### **Revenue & Growth** ????:
- **Hyundai**: Recorded operating revenue of ₹698.29 billion in FY 2024, with a year-on-year (YoY) growth of **15.79%**. This growth is driven by its expanding EV segment and increased domestic demand. Hyundai hold the 2nd position in the Indian market.
- **Maruti Suzuki**: The largest player by revenue in the Indian passenger vehicle market, Maruti Suzuki posted revenue of ₹1,418.58 billion, achieving a YoY growth of **20.64%**. Maruti has the highest Market share of more than 40% in Indian Market.
- **Tata Motors**: Achieved ₹4,379.28 billion in revenue for FY 2024, registering **26.57%** growth, largely driven by its electric vehicle sales and strong performance in both the domestic and international markets. TataMotors have the largest revenue as they are in a diversified segment with strong revenue from the commercial sector also. TataMotors is Largest player in commercial vehicles and 4th largest in PV as per September update.
#### **Profit Margins** ????:
- **Hyundai**: Reported a net profit margin of **8.50%**, reflecting strong operational efficiency and cost management.
- **Maruti Suzuki**: Slightly better at **9.24%**, owing to its large market share and cost control across its product lines. Maruti has the high consistent record of profitability for more than decade, they never made the losses.
- **Tata Motors**: With a lower profit margin of **7.17%**, Tata Motors has a more diverse portfolio that includes commercial vehicles, which impacts its overall profitability. Tatamotrs has posted losses many a times due to high debt.
#### **Debt-to-Equity Ratio** ????:
- **Hyundai**: Maintained a very conservative **0.07x** debt-to-equity ratio, reflecting its minimal reliance on debt.
- **Maruti Suzuki**: Extremely low at **0.0004x**, highlighting its strong balance sheet with almost negligible debt. Maruti is the debt free company which help have better margin and better consistency in Profits.
- **Tata Motors**: A relatively higher **0.46x** due to its capital-intensive nature and investment in electric vehicles and global operations like Jaguar Land Rover. Due to high debt we have seen Tata Motors making losses many a times.
#### **Return on Equity (ROE)** ????:
- **Hyundai**: Recorded a robust **56.82%** ROE, reflecting its high profitability and efficient use of equity.
- **Maruti Suzuki**: Reported **15.75%**, benefiting from its strong market position in India.
- **Tata Motors**: Impressive ROE of **36.98%**, boosted by the recovery in its Jaguar Land Rover business and focus on electric mobility.
### 4. **Offer Size and Type** ????:
- **Offer Type**: 100% Book Building.
- **Offer Size**: 142,194,700 equity shares.
- **Price Band**: ₹1865 - ₹1960 per share.
- **EPS_fy24**: ₹74.58 per share which suggest the *PE* of 26 which is not so high.
- **NAV_fy25**: ₹150 per share which suggest the *PBV* of 13X which is high.
### 5. **Object of the Offer** ????:
- The IPO is an **Offer for Sale (OFS)** by the promoter, Hyundai Motor Company. The company will not receive any proceeds from the IPO.
### 6. **Valuation and Future Outlook** ????:
- Hyundai's valuation is driven by its strong market position, continued growth in the passenger vehicle market, and strategic investments in electric vehicles.
- **EV Expansion**: Hyundai’s investments in electric mobility align well with the growing EV demand, positioning it for long-term growth.
### 7. **Conclusion** ????:
- **Best Company in the Sector**: While Maruti Suzuki dominates in market share, profitability and revenue, **Hyundai's strong 2nd largest brand, profitability, efficient capital structure, and focus on electric vehicles** give it a significant competitive advantage, particularly in the future growth sectors like EVs. Tata Motors, with its expansive global operations, also remains a key player in the sector, especially in electric mobility.
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### 8. **Investment** ????:
- Investors investing in an IPO can expect 12-15% CAGR growth in future along with consistent profits. However the best choice between both mnc Maruti and Hyundai should be Maruti due to more market, better growth and debt free status.
