[Special Stock] Hyundai Motor, "Focus on Local IPO of Indian Subsidiary"

Hyundai Motor's stock price is on the rise. Securities analysts believe that the value will be reassessed through the local initial public offering (IPO) of its Indian subsidiary, which appears to be influencing the stock price.

At 10:30 AM on the 20th, Hyundai Motor was trading at 253,500 KRW, up 3.89% from the previous day.

Ja-il Lee, a researcher at Eugene Investment & Securities, stated, "The total corporate value of the Indian subsidiary is estimated to be between 30 trillion and 40 trillion KRW, and it is expected to raise about 3 trillion KRW in funds. The price-to-earnings ratio (PER) of the three Indian listed companies is expected to be 22 times this year, which is five times Hyundai Motor's valuation, so the value is likely to be reassessed through the Indian listing."

The expected annual performance for this year is also favorable. The researcher said, "Despite last year's high base effect, an increase in annual earnings is possible. The expected operating profit for this year is estimated at 15.1 trillion KRW, a 0.2% increase compared to the previous year." He added, "Based on strong performance, an enhancement of shareholder return policies is anticipated. Recently, Toyota announced a buyback of about 9.5 trillion KRW worth of its own shares and a cancellation of 2 trillion KRW. It is a time when Hyundai Motor's response is eagerly awaited."