Toyota India Listing: Since the Covid period (Covid19), the Indian stock market has emerged as the highest returning market among the emerging markets. While foreign investors (FIIs) have capitalized on the boom in the Indian markets, retail investors are now deciding the direction of the Indian stock market. In such a situation, the Indian market has emerged as the hottest destination for investors. Many multinational companies which have been present in India for years through their subsidiary companies are also seriously considering listing the company on the stock exchange. Hyundai Motor India has been listed, LG is considering listing. Now the discussion about listing of Japanese automobile company Toyota Kirloskar Motors on the stock exchange has also intensified.
Will Toyota Kirloskar be listed?
South Korean automobile company Hyundai Motor India had launched the biggest IPO in the history of the Indian stock market on the stock exchange in October 2024 and the company has been listed on the exchange. Korean electronics company LG India is also considering listing on the stock exchange. Japan’s Maruti Suzuki and Hitachi Energy are already listed on the stock exchange and these companies have given excellent returns to their shareholders. But according to a report by Economics Times, Toyota Kirloskar Motors is among the strong contenders for listing on the stock exchange in the future, considering its excellent growth, strong financials and the rapid growth of India’s auto sector.
Excellent financial performance of Toyota Kirloskar
Toyota Kirloskar Motors has registered excellent growth for the last several years. If we look at the financial performance of the company from the financial year 2018-19 to the financial year 2023-24, there has been an annual increase of 23 percent in the sales growth of the company. In the financial year 2018-19, the revenue was Rs 19633 crore and the net profit was Rs 408 crore. In the financial year 2023-24, revenue has increased to Rs 55,866 crore and net profit has been Rs 4787 crore. In the first half of the current financial year 2024-25, domestic dispatch has increased at the rate of 30 percent, which is more than Mahindra & Mahindra’s 21 percent. Maruti, Hyundai and Tata Motors are far behind Toyota Kirloskar Motors in this matter. Operating profit has grown at the rate of 46 percent annually and Toyota Kirloskar Motors is the fourth largest automobile company in terms of revenue. The company’s market share in India is expected to reach 6.2 percent in 2024, which was 2.8 percent in 2020.
Valuation can reach up to 20 billion dollars
Looking at the pace of growth of Toyota Kirloskar Motors, it is being estimated that the company has the potential to achieve a valuation of up to $20 billion, which is 10 percent more than the market capitalization of the parent company. If Toyota Motors considers listing Toyota Kirloskar Motors on the Indian Stock Exchange, it could prove to be a great investment for the parent company. Investors will hope that Toyota Kirloskar Motors will not make the same mistake that Hyundai Motor India did. The listing of the company on the Indian Stock Exchange will further strengthen the brand value as Maruti Suzuki has made its mark.
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