On the 26th, SK Securities predicted that the cash inflow from the sale of existing shares due to the listing of Hyundai Motor's India subsidiary would reach around 3 trillion won.
Recently, Hyundai Motor has announced plans to list its 100% owned India subsidiary locally. According to the IPO application submitted to the Securities and Exchange Board of India (SEBI), it is expected to sell up to 17.5% of the 812 million shares held.
Researcher Yoon Hyuk-jin stated, "Upon the listing of Hyundai Motor's India subsidiary, we expect a market capitalization exceeding 20 trillion won with a price-to-earnings ratio (PER) in the low 20s," adding, "With a 17.5% sale of existing shares, the cash inflow to Hyundai Motor is expected to be around 3 trillion won."
He further noted, "Based on record-high earnings and abundant liquidity, shareholder returns such as share buybacks are expected to be further strengthened," and added, "With a 2 trillion won share buyback, Hyundai Motor's shareholder return ratio is projected to rise from 25% in 2023 to 40% in 2024."
Related beneficiary stocks include Hyundai Motor, Kia, and parts suppliers such as Hwashin, Seoyon E-Hwa, and SL.
He also pointed out, "Among major parts companies, those with a high proportion of sales from the India subsidiary in 2023 are Hwashin at 18%, Seoyon E-Hwa at 16%, Sungwoo Hitech at 13%, and SL at 11%," adding, "With the best volume growth in the Indian market, additional growth is expected through capacity expansion by Hyundai Motor and Kia."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
