1. At a Glance
Hyundai India, the stylish younger cousin of the Korean auto empire, has gone from humble hatchbacks to dominating India’s SUV dreams. With 67,000+ Cr in sales, 42% ROE, 13 models, and 13% exports, this company isn’t just selling cars—it’s exporting India’s muscle to the world, one i20 at a time.
2. Introduction with Hook
Imagine a Maruti that decided to hit the gym, learn Korean, and develop a tech obsession. That’s Hyundai Motor India.
- ₹5,492 Cr net profit in FY25
- ROCE: god-level 54.2%
- Operating cash flow: ₹4,251 Cr — enough to build a few factories or just throw a party in Seoul.
Yet, despite being one of the most profitable auto players in India, their IPO valuation seems to be only warming up. Welcome to India’s next automobile multiverse.
3. Business Model (WTF Do They Even Do?)
Hyundai Motor India Ltd (HMI) is the second-largest carmaker in India by market share and a critical export hub for Hyundai globally.
Product Portfolio:
- 13 models: Hatchbacks (i10, i20), Sedans (Verna), SUVs (Creta, Alcazar, Tucson), EVs (Ioniq 5)
- ICE + EV strategy. Their EV share is still small, but the focus is growing.
- 26.7% of Q1 FY26 volumes were exports.
Revenue Streams:
- 95% from passenger vehicle sales
- 5% from spares, accessories, and EV components
Geography:
Domestic + 85 countries in exports. Chennai = factory to the world.
4. Financials Overview
| Metric | FY24 | FY25 |
|---|---|---|
| Revenue | ₹68,539 Cr | ₹67,654 Cr |
| Operating Profit | ₹8,969 Cr | ₹8,748 Cr |
| Net Profit | ₹5,954 Cr | ₹5,492 Cr |
| OPM | 13% | 13% |
| ROCE | 51% | 54% |
| ROE | 44% | 42% |
Key Callouts:
- Flat top-line but profit-rich bottom line.
- Auto margins = envy of IT companies.
- Capex: ₹4,700+ Cr in FY25 (massive CWIP surge = plant or EV ramp-up)
5. Valuation
At ₹2,152 stock price and ₹67.6k Cr sales:
- P/E: 31.9
- Book Value: ₹194 → P/B: ~11x
- Fair Value Range:
- Base case (25x PE): ₹1,700
- Bull case (40x PE due to EV optionality): ₹2,720
- Bear case (20x PE): ₹1,350
FV Range: ₹1,350 – ₹2,720
Not cheap. But hey, Ferrari’s not cheap either.
6. What’s Cooking – News, Triggers, Drama
- Investor Day Coming: Oct 2025—expect some EV flex.
- CWIP 4,704 Cr: Big capex. New plant? EV push? Export ramp?
- Exports up 13% YoY: Gearing up India as the EV export base.
- Zero Dividend in FY25: Despite ₹5,492 Cr profit, Hyundai went full stingy. Why? Possible reinvestment into EVs.
7. Balance Sheet
| Item | FY24 | FY25 |
|---|---|---|
| Equity Capital | ₹813 Cr | ₹813 Cr |
| Reserves | ₹9,472 Cr | ₹14,954 Cr |
| Debt | ₹832 Cr | ₹847 Cr |
| Total Assets | ₹25,654 Cr | ₹29,372 Cr |
Key Points:
- Almost debt-free.
- Cash hoard plus capex — silent powerplay.
- Reserves grew ₹5,400 Cr in 1 year = amazing wealth compounding.
8. Cash Flow – Sab Number Game Hai
| Metric | FY24 | FY25 |
|---|---|---|
| Operating CF | ₹9,113 Cr | ₹4,251 Cr |
| Investing CF | ₹-9,814 Cr | ₹-326 Cr |
| Financing CF | ₹-15,929 Cr | ₹-62 Cr |
| Net Cash Flow | ₹-16,630 Cr | ₹3,864 Cr |
Notes:
- FY24 was a massive capex and payout year. FY25 = conservative cash rebuild.
- Still generating strong OCF. This engine runs hot.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 54.2% |
| ROE | 42.2% |
| Debtor Days | 12 |
| Inventory Days | 25 |
| Payables Days | 51 |
| CCC | -14 days |
Verdict:
It’s a cash machine. Literally gets paid before it pays others. Chef’s kiss.
10. P&L Breakdown – Show Me the Money
| Year | Sales | OPM % | PAT | EPS (Rs) |
|---|---|---|---|---|
| FY22 | ₹47,043 Cr | 12% | ₹2,862 Cr | – |
| FY23 | ₹59,761 Cr | 12% | ₹4,654 Cr | – |
| FY24 | ₹68,539 Cr | 13% | ₹5,954 Cr | – |
| FY25 | ₹67,654 Cr | 13% | ₹5,492 Cr | 67.59 |
Comment:
Flat revenue? Yes. But margins and profits? Solid. FY26 will be judged on growth reacceleration.
11. Peer Comparison
| Name | Market Cap | P/E | ROE | OPM |
|---|---|---|---|---|
| Maruti Suzuki | ₹3.9L Cr | 27 | 16% | 13.2% |
| M&M | ₹3.8L Cr | 30 | 18% | 19% |
| Tata Motors | ₹2.5L Cr | 8.9 | 28% | 12.5% |
| Hyundai India | ₹1.7L Cr | 31.9 | 42% | 13% |
Inference:
Hyundai has better ROE than anyone in the passenger car game. Now if only growth matched Maruti…
12. Miscellaneous – Shareholding, Promoters
| Shareholder | Dec ’24 | Mar ’25 |
|---|---|---|
| Promoters | 82.5% | 82.5% |
| FIIs | 6.7% | 7.17% |
| DIIs | 7.13% | 7.0% |
| Public | 3.67% | 3.32% |
Notes:
- FII interest increasing.
- Public share float very limited.
- No dividend in FY25 = either IPO guilt or capex hunger.
13. EduInvesting Verdict™
Hyundai Motor India isn’t just selling cars—it’s quietly building the future of EV exports from India. ROCE that would make Infosys jealous, cash flows that fund armies, and a CWIP surge that screams “wait for the EV tsunami.”
But flat FY25 sales and no dividend make it clear: FY26 will be a defining year.
Verdict: Wait, watch, and honk if you’re bullish.
Metadata
– Written by EduInvesting Research | 15 July 2025
– Tags: Hyundai, Automobiles, EV, Capex, South Korean Mafia in India, Auto Stocks, ROE Kings, High P/E Stocks
