Hyundai is for the long haul and do not expect to make quick buck on listing: Dipan Mehta
Dipan Mehta, Director, Elixir Equities, says Hyundai compares very well with Maruti. It may trade at a slight premium to Maruti also because of its product profile and the kind of distribution expansion opportunity which is there for the company and its superior EV strategy as well. If you are a long-term investor with a two, three, five-year view and prefer consumer-oriented stocks, then Hyundai fits that criteria. But, it is for the long haul and one should not expect a quick buck on listing.
What are your thoughts on the Hyundai IPO? There was a steady response on day one. But it lacks that zing or that X factor that makes investors excited when it comes to the prospects on listing. Do you concur?
Dipan Mehta: That is a good IPO to apply for and that’s how we are advising and a disclosure, we ourselves will be applying in the IPO. But you should not expect an amazing listing like what we have seen with other IPOs. It may be a more tepid listing because of its size and because of the sentiment in the auto industry as well. Even post-listing, you may have a situation where two-three quarters may be quite weak because we are seeing a transient slowdown in the auto sales and that may impact the profitability of all auto companies, Hyundai included.
On the whole, it compares very well with Maruti. It may trade at a slight premium to Maruti also because of its product profile and the kind of distribution expansion opportunity which is there for the company and its superior EV strategy as well. So, if you are a
