Should You Invest in the Hyundai IPO? Expert Insight from Chakri Lokapriya

Chakri Lokapriya, Managing Partner at RSB LLP, shares his views on the Hyundai IPO and the current market conditions. He emphasizes with ET Now that while banking and industrial sectors are showing strength, investors should be more selective compared to last year, as other sectors are struggling.

Market Trends:

Chakri notes that consumer companies are facing pressure on their profit margins. Many are reporting revenue growth that matches inflation, around 6% to 8%. He also highlights a positive trend in credit growth, mentioning State Bank of India’s plans to raise thousands of crores through AT-1 bonds, indicating robust credit activity.

Hyundai IPO Evaluation:

When discussing the Hyundai IPO, Chakri points out that Hyundai is a well-recognized brand both in India and globally. With around 15 models available in India, it is the second-largest car manufacturer in the country. Hyundai has the potential for growth domestically and can also benefit from exporting cars made in India.

Additionally, the company is investing heavily in electric vehicles (EVs), including battery storage and production lines. Some of the funds from the IPO will support these initiatives. Considering these factors, Chakri believes that Hyundai’s valuation of around 23-24 times the IPO price is reasonable and recommends that investors consider subscribing to the IPO.