Mumbai, Nov 13 : Shares of Hyundai Motor India, that were listed at Rs 1,931 apiece, have slipped more than 10 per cent from its IPO price.

On Wednesday, the stock closed in red at Rs 1,745 apiece, owing to poor performance of the automaker in the second quarter of FY25. At closing, Hyundai Motor India shares were down 3.37 per cent.

The shares of Hyundai Motor India, one of the country's leading automobile companies, have continued to decline since its listing. The listing of Hyundai Motor India shares took place on October 22.

The reason for the fall in the stock is attributed to the company's poor results and sales figures.

Hyundai Motor India on Tuesday released the results for the second quarter of the financial year 2024-25. The company's consolidated profit declined by 16 per cent year-on-year to Rs 1,375 crore, which was Rs 1,628 crore in the same period a year ago.

The decline in profits is due to low domestic sales. In October 2024, the company had sold 55,568 vehicles in the domestic market.

According to InCred Equities, the automaker's maiden quarterly results post-IPO were a disappointment with a PAT dip of 16 per cent YoY and 8 per cent QoQ to Rs 13,800 crore in Q2, on an 8 per cent YoY sales decline.

'Considering the weak Q2 financial performance, it will be difficult to justify Hyundai's premium valuation over leader Maruti Suzuki. Maintain Reduce,' said InCred Equities in its note.

There was an increase of only 0.80 per cent on annual basis, which is much less than the average growth of the market. In the same period last year, the company had sold 55,128 vehicles.

Hyundai Motor India launched the country's biggest IPO last month. Its size was Rs 27,870 crore.

Hyundai Motor India is the second largest car company in the country after Maruti Suzuki India. The company's market share was around 14 percent in June 2024. In the financial year 2023-24, the company sold 7.77 lakh vehicles, out of which 21 percent were exported to countries like Latin America, Africa, Middle East and Europe.

Hyundai Motor India has 1,366 sales outlets and 1,550 service outlets in India.

/IANS