Maruti Suzuki share price falls as Emkay retains 'Reduce' call ahead of Hyundai Motor India IPO
₹11,200. According to the brokerage's analysis, Hyundai Motor India outperformed Maruti Suzuki in terms of profitability due to a stronger mix (about 63% contribution from SUVs vs.
around 25% for Maruti Suzuki) and premium positioning, albeit this was largely offset by lower scale.Hyundai Motor Co's, Indian subsidiary, Hyundai Motors India filed Draft Red Herring Prospectus (DRHP) on Saturday, June 15, for a Mumbai stock market listing. The Hyundai Motor India IPO is completely offer for sale (OFS) of 14.21 crore shares of face value of ₹10 each where the South Korean parent is selling up to 17.5% of the firm.Also Read: Hyundai Motor India IPO: How the auto major compares with listed peers on valuation, key financial metricsOn Tuesday's session, Maruti Suzuki share price slipped over 2% on the BSE.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Maruti Suzuki share price is down around 1.5% today, and we are seeing above-average volume in today's session. With Black Body Marubuzo candlestick formation, prices are under pressure right from opening levels.
In the near term, there may be further weakness as long as we don't surpass the morning open high of ₹12,883, and on the downside, support is at ₹12,340.According to the domestic brokerage house's research, Hyundai Motor India's DRHP highlights a continuous focus on premiumisation. For Hyundai, the percentage of passenger vehicles (PVs) costing more over ₹1 million increased to 49% in 9MFY24 from 32.4% in FY21, while volume contribution from SUVs increased to 53% in FY23 from 45% in FY21.The business plans to retain its premiumisation focus (SUVs and mid-high range PVs) through focused model releases across price ranges and powertrains.
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