Auto stock in focus after it plans to set up over 600 public EV charging stations in India

A major auto company has revealed plans to establish a network of 600 fast electric vehicle chargers across India within the next seven years. This initiative aims to enhance EV infrastructure, promote sustainable mobility, and support the growing adoption of electric vehicles nationwide. 

Price Movement 

In Friday’s trading session, the share price of Hyundai Motor India Ltd opened at a high of Rs.1,807.95 per share, rising 1.1 percent from its previous close of Rs.1,787.45 per share. However, the stock declined later to Rs.1,776.65 each. 

What happened 

Hyundai Motor India Limited (HMIL) plans to establish nearly 600 public EV fast charging stations across India within the next seven years, focusing on major cities and key highways. 

By the end of 2024, the company targets a network of 50 fast public charging stations. HMIL’s existing public charging network has already catered to over 10,000 EV customers from various brands, recording over 7.30 lakh units of energy usage. 

Additionally, its myHyundai app, in partnership with other providers, offers access to more than 10,000 EV charging points nationwide. This initiative reflects HMIL’s commitment to promoting sustainable mobility and accelerating India’s shift to clean energy. 

Business Development 

Hyundai Motor India Limited’s (HMIL) charging network has handled about 50,000 charging sessions to date, supplying over 7.30 lakh units of energy to more than 10,000 EV users, including both Hyundai and non-Hyundai customers. 

The company has signed an MoU with the Tamil Nadu government to install 100 EV charging stations across the state by 2027, with plans to make 10 of these operational by the end of 2024. 

Currently, three charging stations are functional at Spencer Plaza and BSR Mall in Chennai and Hotel Seasons in Tiruvannamalai. The remaining seven stations are expected to become operational soon. All EV users in Tamil Nadu can access these stations round the clock via the myHyundai app. 

Domestic Network 

The company has placed its EV charging stations in prominent cities such as Gurugram, Mumbai, Pune, Bengaluru, Hyderabad, Ahmedabad, and Chennai. Furthermore, it has expanded its reach with a network of charging stations along key highways, including Delhi-Chandigarh, Delhi-Jaipur, Hyderabad-Vijayawada, Mumbai-Pune, Mumbai-Surat, Bengaluru-Pune, and Pune-Kolhapur.

Financial Performance 

Turning towards the financials of the company, Hyundai Motor India Ltd reported Q2 FY25 revenue of Rs.16,876 crore, falling 8.3 percent from Rs.18,409 crore in Q2 FY24. Profit After Tax (PAT) decreased by 16 percent to Rs.1,338 crore, compared to Rs.1,602 crore in the same period. 

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Important Financial Ratios 

The Return on Capital Employed (ROCE) of the company stands at 52.17 percent, while the Return on Equity (ROE) is 44.12 percent. 

The company’s Price-to-Earnings (P/E) ratio is 24.37, which is higher than the industry average of 13.53. Additionally, the company maintains a solid current ratio of 1.53 and a low debt-to-equity ratio of 0.08. 

Shareholding Pattern 

As of October 2024, the shareholding pattern of Hyundai Motor India Ltd indicates that promoters hold 82.50 percent, Foreign Institutional Investors (FIIs) hold 7.36 percent, Domestic Institutional Investors (DIIs) account for 5.77 percent, and retail investors hold 4.37 percent of the shares. 

Company Profile 

Hyundai Motor India Limited founded in 1996, is a subsidiary of South Korea’s Hyundai Motor Company. It has become a major presence in the Indian automotive industry, ranking as the second-largest car manufacturer and the leading exporter of passenger vehicles in the country. 

Written by – Siddesh S Raskar 

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