Hyundai Motor India was listed on the stock exchanges on Tuesday, marking the largest initial public offering in India’s history.

What Happened: Shares of Hyundai Motor India saw a discounted listing on the exchanges. It debuted on NSE and BSE at ₹1,934 and ₹1,931 respectively compared to the IPO’s upper price band of ₹1,960. Ahead of the listing, the IPO’s grey market premium was hovering around the ₹48 mark.

While the stock is off to a rough start at the bourses, several analysts remain bullish on the company’s long term prospects.

Nomura initiated its coverage on the stock with a “buy” recommendation and a target price of ₹2,472. It estimates the company to deliver an 8% volume compound annual growth rate (CAGR) for FY25-FY27, supported by the introduction of 7-8 new models, including facelifts.

EBITDA margins are expected to rise to 14% by FY27, up from 13.1% in FY24. This improvement will be driven by a better product mix, cost reduction initiatives, and enhanced operating leverage, it said.

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Additionally, Nomura sees a long runway for the Indian car industry. With current car ownership at just 36 vehicles per 1,000 people, there is a substantial opportunity for market development and increased penetration, it believes.

Macquarie also initiated coverage with an outperform rating on Hyundai India with a target price of ₹2,235. The analysts believe the company deserves a higher price-to-earnings multiple compared to its peers due to its strong portfolio and premium market positioning.

Hyundai’s flexible powertrain options, along with the advantages of its parent company’s capabilities and potential market share growth, are seen as positive factors for the medium term. Key catalysts include domestic demand for passenger vehicles, the company's market share trends, new model launches, and margin improvements driven by its product mix, the brokerage noted.

Price Action: Hyundai’s share price was down around 5% to trade at ₹1,865 on Tuesday.

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