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Hyundai Motor India's debut on the stock market saw a less-than-enthusiastic reception as its shares opened at a discount compared to the expected price. On Tuesday, October 22nd, the shares started trading on the BSE at ₹1,931 apiece and on the NSE at ₹1,934 per share, marking a 1.50 per cent discount against the upper price band of ₹1,960. The stock faced further downward pressure throughout the day, hitting a low of ₹1,844.65 on the NSE.
Despite the initial bearish sentiment, experts remain optimistic about the long-term prospects of Hyundai Motor India. They highlight the company's position as the second-largest passenger vehicle manufacturer in India, coupled with its robust fundamentals. The focus on innovation, particularly in the SUV segment, is seen as a significant driver for future growth. Shivani Nyati, Head of Wealth at Swastika Investmart, emphasizes the company's strong foundation and its strategic focus on SUVs as crucial factors for long-term success. She advises investors with a long-term perspective to hold onto the stock.
For those considering entering the market post-listing, experts recommend a more cautious approach. Prashanth Tapse, Senior Vice President of Research at Mehta Equities, advises potential investors to wait and observe the market before making any decisions. He suggests waiting for the price to stabilize and potentially offering a 10-15% discount on the issue price before making any investment. While acknowledging Hyundai's growth story remains intact, Tapse believes waiting for a more attractive entry point could prove beneficial in the long run.
The initial dip in Hyundai's share price following the listing reflects the prevailing market sentiment and investor expectations. However, the company's solid foundation, innovation drive, and focus on the expanding SUV segment present a promising outlook for the long term. As with any investment, careful analysis and a long-term perspective are key to navigating market fluctuations and maximizing returns.
Source: Hyundai share price dips after discounted listing. Buy, sell or hold?