One of the country’s leading automobile manufacturers, Hyundai Motor India Ltd (HMIL) received a show cause notice from the Maharashtra State Tax Authority for alleged discrepancies in input tax credit (ITC) claims for the financial year 2020-21.
According to the notice, the tax authority has alleged “excess ITC claimed in GSTR 3B/9, which is not confirmed in GSTR 2B/8A of GSTR 9, along with RCM tax paid by the company.” The total demand raised in the notice includes Rs 2.741 crore towards tax and Rs 2.279 crore towards interest.
Hyundai Motor India, in a filing to the National Stock Exchange (NSE) and BSE Ltd under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, clarified that the company will respond to the notice within the prescribed timelines.
Hyundai addresses compliance issue
The company further mentioned that this notice would have no immediate impact on its financial, operational, or other activities. The issue pertains to routine compliance, and Hyundai plans to address it through appropriate channels with the adjudicating authority.
Hyundai Motor India, headquartered in Gurugram, Haryana, is the Indian subsidiary of South Korean automotive giant Hyundai Motor Company and a significant player in the Indian automobile market.
Hyundai Q2 profit drops 16 per cent
Hyundai Motor India reported a 16 per cent decline in its net profit for the second quarter, following its public listing last month. The decline was attributed to weak domestic demand and the Red Sea crisis, which affected exports.
For the July-September quarter, the Indian arm of the South Korean carmaker saw its net profit fall to Rs 1,375.47 crore, down from Rs 1,628.46 crore in the same period last year. Revenue also dropped by 7.5 per cent, falling to Rs 17,260.38 crore from Rs 18,659.69 crore.
Adani Group’s asset base expanded by USD 9 billion in H1 financial year 2025 to USD 60 billion, while gross debt grew by only USD 2 billion.
The Adani Group has announced robust financial health and steady growth through its latest H1 FY25 and Trailing-Twelve-Month (TTM) results, despite external pressures.
The Trailing-Twelve-Month EBITDA – earnings before interest, taxes, depreciation, and amortisation – surged 17 per cent YoY to USD 10 billion. Simultaneously, funds from operations (FFO) reached USD 7 billion, growing at over 30 per cent annually for five years.
Net debt-to-EBITDA stood at 2.46x, below the group’s guidance range of 3.5x-4.5x. Liquidity across portfolio companies remains robust, with reserves covering debt obligations for the next 12 months and beyond. Adani Group’s asset base expanded by USD 9 billion in H1 financial year 2025 to USD 60 billion, while gross debt grew by only USD 2 billion. Equity now accounts for 63 per cent of total funding.
Debt maturities until the 2034 financial year are comfortably manageable with current levels, even assuming no growth. This stability aligns with the group’s long-term plans to invest USD 100 billion over the next decade.
Adani Group’s core infrastructure businesses, which include energy, transport, and utilities, remain the bedrock of its performance, contributing 86.8 per cent of H1 for financial year 2025 EBITDA. Emerging businesses in green energy, airports, and roads saw EBITDA growth of 70.1 per cent year-over-year.
Other businesses:
Adani Enterprises: Passenger volumes across airports rose 6 per cent YoY, while solar module sales jumped 91 per cent.
Adani Green Energy: Operational capacity increased by 34 per cent YoY, with construction commencing on a 500 MW hydro pump storage project.
Adani Energy Solutions: Expanded its transmission network by 2,760 ckm and secured three new projects.
Adani Ports and SEZ: Cargo volumes grew 9 per cent year-over-year, while acquisitions bolstered operational capacity.
Adani Cements: Acquisitions raised the group’s cement capacity to 97.8 million tonnes per annum.
The Adani Group maintained cash reserves of INR 53,024 crore as of September 2024, equivalent to 21 per cent of its gross debt. These reserves ensure liquidity for 28 months of debt servicing.
What It Means
1. Trailing-Twelve-Month EBITDA at USD 10 billion – up 17 per cent year-over-year
What it means: Strong EBITDA growth
2. Fund from operations at USD 7 billion for the last 12 months and growing at over 30 per cent for the past 5 years
What it means: Growth in cash flow from operations is strong and has sustained
3. Net debt to EBITDA is at 2.46x.
What it means: Debt to EBITDA remains at reasonable levels
4. Liquidity position across our portfolio companies remains strong with sufficient liquidity to cover all debt obligations including refinancing for the next twelve months plus one day.
What it means: Healthy liquidity to cover to address debt
5. Debt maturities for each year until financial year 2034 are less than the Trailing-Twelve-Month September 2024 FFO
What it means: Even current funds from operations with no growth should be sufficient to cover debt maturities
6. Asset base has increased by USD 9 billion to USD 60 billion in H1 financial year 2025. During the same period, gross debt has increased by only USD 2 billion.
What it means: Asset base growing faster than debt
7. Equity now accounts for 63 per cent of total debt – showing lowering dependence on debt.
What it means: lower dependence on debt
8. Exposure to Indian banking at USD 11 billion or 42 per cent. However, the net exposure is very low after accounting for cash of USD 6 billion, most of which is parked with Indian banks.
What it means: Net exposure to Indian banking is low
S&P Global Ratings on Monday revised down its estimate for India’s economic growth in the next two financial years as high interest rate and lower fiscal impulse temper urban demand.
In an update to its economic forecast for Asia-Pacific economies after US election results, the rating agency projected a 6.7 per cent GDP growth rate in 2025-26 financial year (April 2025 to March 2026) and 6.8 per cent in the following fiscal year, down from 6.9 per cent and 7 per cent, respectively in previous projections.
For FY25, S&P Global pegged GDP growth rate at 6.8 per cent.
“In India we see GDP growth easing to 6.8 per cent this fiscal year as high interest rates and a lower fiscal impulse temper urban demand. While purchasing manager indices (PMIs) remain convincingly in the expansion zone, other high-frequency indicators indicate some transitory softening of growth momentum due to the hit to the construction sector in the September quarter,” it said.
The agency expects India’s GDP to grow at 7 per cent in FY28.
S&P retained its growth projection for China at 4.8 per cent in 2024 but cut next year’s forecast to 4.1 per cent from 4.3 per cent earlier and to 3.8 per cent in 2026 from the previous estimate of 4.5 per cent.
“The impending change in the US administration will be challenging for China and the rest of Asia-Pacific. US tariff increases have become more likely, especially on China, and possible changes in the US macro picture are leading to different interest rate expectations,” said the report titled ‘Economic Outlook Asia-Pacific Q1 2025: US Trade Shift Blurs The Horizon’.
Louis Kuijs, S&P Global Ratings Asia-Pacific Chief Economist, said rising risks are blurring the economic outlook for Asia-Pacific in the first quarter of 2025.”While much of the region should be able to continue to grow solidly, central banks will probably remain cautious by not reducing their policy rates too fast.” China’s stimulus measures should support growth, but S&P expected its economy to be hit by US trade tariffs on its exports.
The Asia-Pacific growth will be impeded by slower global demand and US trade policy. But lower interest rates and inflation should ease their drag on spending power.
Zomato has posted impressive stock price gains, with the company’s shares rallying 41% in the last six months and over 128% year-to-date (YTD). This growth has been driven by steady expansion in its core food delivery business and strong demand in its quick commerce division, Blinkit.
Shares of Zomato, the food delivery aggregator, surged 6.35% in early morning trade on Monday, November 25 to their 6-week high of ₹273 apiece as the company is set to enter the BSE Sensex index, replacing JSW Steel. The company will become the first new-age tech stock to enter the 30-share frontline index.
Asia Index Private Ltd, a subsidiary of BSE, announced the reconstitution on Friday post-market hours. The changes will take effect on December 23, 2024, the Asia Index announced. Companies are added or removed from the Sensex based on their average six-month float-adjusted market capitalisation.
The BSE Sensex includes 30 large, well-established companies across key sectors, serving as both a benchmark and an investable index.
In another development, the company announced on Saturday that its shareholders have approved a proposal to raise capital through a qualified institutional placement. Last month, the board had approved a fundraise of up to ₹8,500 crore via this method to strengthen its cash balance following the recent acquisition of the movie and events ticketing businesses of digital payments firm Paytm.
Stock up 128% in 2024
Zomato has posted impressive stock price gains, with the company’s shares rallying 41% in the last six months and over 128% year-to-date (YTD). This growth has been driven by steady expansion in its core food delivery business and strong demand in its quick commerce division, Blinkit.
Additionally, several brokerages have raised their target prices for the stock, citing robust potential in both the food delivery and quick commerce sectors, which has also led to a sharp rise in the stock’s value. Japanese brokerage firm Nomura noted in its latest report that the company’s growth has significant room to accelerate, raising its target price from ₹280 to ₹320 while maintaining a “buy” rating.
Given the low penetration levels and increasing market acceptance in India, Zomato’s quick-commerce business is focusing on expanding store density in existing markets. The company plans to increase its store count by approximately 4X, aiming for 2,000 stores by December 2026, according to Nomura.
Earlier in September, global brokerage firm JP Morgan raised its target price for the stock from ₹208 to ₹340 per share, maintaining its “overweight” rating.
Looking at its financial performance, the company reported a consolidated net profit of ₹176 crore in Q2FY25, up from ₹36 crore in the same quarter last fiscal. Consolidated revenue from operations stood at ₹4,799 crore, compared to ₹2,848 crore in the year-ago period.
The company added 152 new “dark stores—distribution” centres—during the quarter, the highest number added in any single quarter, bringing the total store count to 791.
Hero MotoCorp Limited (HEROMOTOCO) is the largest two-wheeler manufacturer in the world, with an unparalleled dominance in the Indian market. With a strategic push into electric vehicles (EVs) through its Vida brand and continued strength in commuter motorcycles, the company is well-positioned for future growth. This report delves into Hero MotoCorp’s financial performance, industry trends, valuation, and technical analysis, providing actionable insights for investors.
Investment Rating: BUY
Target Price: ₹5,030
Current Market Price (CMP): ₹4,835
Stop Loss: ₹4,720
2. Company Overview
Hero MotoCorp was established in 1984 and has grown into the most recognized two-wheeler brand globally. Known for affordability and fuel efficiency, Hero’s models like Splendor, HF Deluxe, and Passion dominate India’s mass-market segment. The company is also making strides in the electric vehicle market, signaling its adaptability to evolving industry trends.
Key Statistics:
Market Share: ~35% in India (Two-wheelers)
Installed Capacity: Over 11 million units annually
Global Reach: 40+ countries across Asia, Africa, and South America
EV Segment: Launched Vida V1 series, with plans to expand product offerings by 2025
3. Financial Performance
Q2 FY2024 Highlights:
Metric Q2 FY2024 YoY Growth QoQ Growth
Revenue ₹9,950 Cr +7% +4%
Net Profit ₹1,015 Cr +5% +2%
EBITDA Margin 12.5% +40 bps Flat
Earnings Per Share ₹50.4 +6% +3%
Hero MotoCorp’s profitability has remained stable despite headwinds like rising input costs. The company’s focus on cost efficiency and product mix optimization has supported margin expansion.
4. Industry Overview
4.1. Indian Two-Wheeler Market:
India is the world’s largest two-wheeler market, driven by affordability, rural penetration, and convenience in congested urban areas. The market is transitioning rapidly toward electric two-wheelers due to government incentives under FAME-II and rising fuel costs.
4.2. Electric Vehicle (EV) Opportunity:
Hero has committed significant resources to EV development, competing with players like Bajaj, TVS, and startups like Ola Electric. Its Vida brand targets urban commuters and eco-conscious consumers.
4.3. Macro Trends:
Urbanization and Income Growth: Boost demand for premium two-wheelers.
Government Push for Electrification: Incentives and infrastructure support the EV ecosystem.
Commodity Cost Trends: Steel and aluminum prices are stabilizing, aiding margin recovery.
5. Key Strengths
5.1. Market Leadership:
Hero’s iconic brands dominate entry-level motorcycles, a segment that accounts for 50% of two-wheeler sales in India.
5.2. Strong Financials:
Hero’s low debt levels (D/E: 0.03) and robust cash reserves position it well for future growth.
5.3. Rural Penetration:
Over 60% of Hero’s sales come from rural areas, where its affordable and reliable products are trusted.
5.4. Electric Vehicle Strategy:
Hero’s EV launch under the Vida series is gaining traction. The company plans significant capacity expansions and R&D investments in the EV space.
6. Risks
6.1. Rising Competition:
Startups like Ola Electric and Ather Energy, along with incumbents like Bajaj and TVS, are increasing competition in the EV segment.
6.2. Dependence on Domestic Market:
Over 90% of sales are from India, making Hero vulnerable to local economic shocks.
6.3. Commodity Price Volatility:
Rising costs of steel, aluminum, and rubber could pressure margins.
7. Valuation
MetricHEROMOTOCOPeers Avg.
P/E Ratio 23 45
EV/EBITDA 14.7x 14.9x
Dividend Yield 4.0% 2.8%
ROE 22% 18%
Hero is attractively valued compared to peers, with a strong dividend yield and healthy ROE.
8. Technical Analysis
1-Year Chart:
Below is the 1-year price chart of HEROMOTOCO.
Key Observations:
Stock trade on a support level
Support Levels: 4675-4740 Support zone.
Resistance Levels: 5060-5150 Resistance zone.
Indicators: RSI at 30, near oversold zone.
9. Strategic Initiatives
EV Expansion: Hero is setting up EV-specific plants and plans to launch 5 new models by 2026.
Export Growth: Aggressive expansion in Africa and Latin America to reduce domestic dependency.
Tech Partnerships: Collaborations with Gogoro for battery swapping technology.
