Listless listing for Hyundai Motor India; here's what analysts suggest you do

Hyundai Motor India Stock, Hyundai Motor India Share Price Target: India's biggest initial public offering (IPO), Hyundai Motor India, repeated history by making a weak debut on the bourses today (October 22, 2024). After listing on a tepid note, shares fell up to 6 per cent to the day's low price of Rs 1,846, while at the last count, it traded weaker by over 4 per cent at Rs 1,872.7 apiece on the BSE.

In the past, the biggest IPOs like Life Insurance Corporation of India (LIC), One 97 Communications Limited (Paytm), Yes Bank and others also disappointed investors in terms of listing gains.

Amid this decline in the stock post listing, should investors add Hyundai Motor India to their portfolio for the long term or should they wait for the right opportunity? Here's what analysts say:

Global brokerages' view on the Hyundai Motor India stock

Analysts from two prominent global brokerages are bullish on the Hyundai Motor stock before its listing. Nomura and Macquarie have initiated coverage on Hyundai Motors India, predicting significant growth potential.

Nomura analysts' have a 'buy' call on the Hyundai Motor India stock with a target of Rs 2,472, which implies an upside potential of 26 per cent from the issue price (Rs 1,960).

Meanwhile, another brokerage, Macquarie has an 'outperform' rating on the automobile company's stock with a target of Rs 2,235, which implies an upside potential of 14 per cent from the issue price.

Domestic brokerages recommend the Hyundai Motor stock for long term

Domestic brokerages, ICICI Direct, and Motilal Oswal Financial Services Ltd (MOFSL) have also recommended to subscribe it for only long-term and medium-term perspectives, not for short-term or listing gains.

Hyundai Motor India Shares Listing | Here are recommendations of the domestic brokerages:

• ICICI Direct: The brokerage is expected to deliver healthy double-digit portfolio returns over the medium to long term.
• MOFSL: Analysts have initiated a 'buy' call on the stock with a target of Rs 2,345 from a perspective of long term. They expected that the company to be a key beneficiary of growth in the PV segment due to its strong presence in the SUV segment.

Shivani Nyati of Swastika Investmart has expressed that long-term investors can hold the Hyundai Motor India stock due to strong fundamentals, and focus on SUVs.

"Investors who entered with a long-term perspective may consider holding the stock, as future performance will likely be driven by the company’s competitive market position and product innovations," she said.