"India's Largest IPO: Hyundai Motor India Offers a Deep Dive into Pros, Cons & Growth Potential!"

hey everyone welcome back to the channel today we are diving into a Hot Topic that's been making waves in the Indian market Hyundai Motor India's record-breaking IPO filing India is gearing up to witness its largest a IPO and it's definitely one to watch what are the key highlights of this IPO largest a IPO Hyundai Motor India recently filed a draft red hearing Prospectors with the Securities and Exchange Board of India for a hooping 25,000 CR of offer for sale of up to 142 million shares which constitute 17.5% stake second one is IPO details the IPO will provide investors with the chance to buy shares of this highly profitable car maker the valuation of Hundai has been estimated around $8 billion placing it as a significant player in the Indian Automotive Market what are the performance snapshot of this company for output performance the in the Nifty in Auto index has SED 2 24% in The Last 5 Years significantly outperforming the nifty50 and the volume growth if we see about while volume growth has been modest Hyundai transition to higher margin SUV sales has blustered profit margins what are the capex efficiency Hyundai lower capital expenditure that is 4.4% of the revenue compared to competitor contributes to its robust free cash flow let's learn about what are the pros and cons of this ipu Pros the first Pros if we say about is profitability Hyundai has generated outstanding free cash flow due to its lower traic and negative working capital cycle making it as a cash generating machine second one is growth potential the expansion of the capacity at the chenai plant and the newly acir talo facility offers Prospect of increased production and sales volume but is with government incentives with government support through various schemes including production link incentives that is PL Hundai stands to benefit forther enhancing it profitability the fourth one is pre-owned Car Sales the growing pre-owned car sales network highlights an opportunity for sustained Revenue growth let learn about the cons so royalty payment increase a recent royalty agreement with the Hyundai Motor company has increased royalty payout affecting profit margins second one is supplier concentration High dependency on a few suppliers particularly from the Hundai Motor Group poses a risk in terms of supply chain stability artperforming Rivals despite the robust cash flow Hyundai sales growth has lagged behind marui always which may influence investors expectation so what next Hyundai's IP offer a unique opportunity to invest in a leading car maker with promising Prospect in in an expanding Market while the company faces some challenges it cash generating capabilities and strategic capacity expansion will likely position it favorable are you considering investing in Hundai IPO let me know in the comment

Channel: BullsVision

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Length: 3min 14sec (194 seconds)

Published: Thu Jun 20 2024