Hyundai Motor India Stock Hits All-Time High On GST Reform Buzz

Shares of Hyundai Motor India Ltd. soared on Tuesday to hit a new all-time high of Rs 2,511. The rally comes amid growing optimism around a potential GST rate cut on automobiles, following Prime Minister Narendra Modi's Independence Day announcement of a major overhaul in the tax structure.

The stock, which debuted on the exchanges in October 2024 at Rs 1,934, has now surged over 25% from the issue price. Hyundai Motor India is a part of the Nifty Next 50 index and is India's second-largest passenger vehicle maker, with a major market share in the domestic market.

The sharp move in Hyundai's stock outpaced the broader Nifty Auto index, which rose 1.13% during the session. The rally is largely attributed to expectations that the GST Council may reduce the tax rate on small cars and hybrid vehicles from 28% to 18%, a move that could lower prices and boost demand during the upcoming festive season.

Hope has built up around the proposed GST cut which could reduce car prices for consumers, support domestic demand, and provide relief to automakers facing sluggish urban consumption.

Despite reporting a 7% decline in consolidated net profit for the June quarter to Rs 1,335.7 crore, Hyundai's stock has remained resilient. The company's Ebitda margin stood at 13.3%, slightly lower than the previous year but above analyst expectations.