India is a nation of youthful candor, constantly evolving in every segment, especially automobiles. Distressing rates of pollution and rising fuel prices have spurred the adoption of electric vehicles. In this scenario, the latest trend is undoubtedly electric vehicle stocks in India. Investors are smart enough to realize this boom is here to stay but researching the brands you want to place your buck on can be an intimidating task.
Many companies are riding the wealth and success wagon. When investing in the electric vehicle industry, do remember, it’s not only the automakers that have scope. Going by market reports, even automobile component manufacturers make for a profitable investment opportunity.
Here, we list investment-worthy top 10 electric vehicle stocks in India:
Mahindra Electric
India’s leading automobile brand takes a spot on the watchlist of electric vehicle stock in India. Mahindra Electric is India’s pioneer EV manufacturer. The brand’s electric variant- eVerito is India’s first electric sedan. Creating a pathbreaking trend Mahindra Reva the first EV, launched way back in 2001. The company has set up its R&D center in Bengaluru. Mahindra Electric has 2 variants e2o PLUS and eVerito. Taking responsibility toward electric mobility Mahindra has partnered with various institutions including Amazon to support EV charging.
Current Key Metrics
Market Cap (Rs. in Cr.): 91,797 Cr
Earning Per Share: Rs. 19
Price To Earnings Ratio: 39.33
Enterprise Value: 159570.18
Tata Motors Electric Vehicles
Tata Motors is Indias largest automobile manufacturer, identified for its brand value and innovative leadership. Tata’s automobile division offers a wide range of products including cars, utility vehicles, buses, trucks, etc. Tata has also collaborated with the Indian defense as the first OEM to provide combat vehicles. Other associates in its flagship include Jaguar Land Rover and Tata Daewoo. In the electric range of EV, the collection includes Nano, Nexon, Tigor, and the upcoming Tiago. Tata’s development applications are aimed at evolving auto technologies.
Also, Tata is expecting high demand from state transport unions in the Electric bus division. The anticipated demand is expected to be in the range of 400,000 buses approximately. Like its competitor, Tata has also directed its focus toward setting up charging stations to develop the e-mobility infrastructure. All this makes Tata Electric a highly viable electric vehicle stock option.
Current Key Metrics
Market Cap (Rs. in Cr.): 100,223Cr
Earning Per Share: -29
Price To Earnings Ratio: 0.00
Enterprise Value (Rs. in Cr.): 189335.54
Hyundai Electric Vehicles
Recently Hyundai launched Hyundai Kona EV, an electric 5 seater hatchback car. The Kona Electric is Hyundai’s first contribution to the electric segment. The South Korean global institution has offered a design suited to Indian logistics requirements. The key element of the Kona EV is its 452km range in just one charge. Further, Hyundai is developing yet another EV that is cost-effective. The plan is to launch the new EV in the next 2-3 years. Hyundai’s long-term goals and market viability put it on top of this list. This year in the first six months until 30 June 2021, Hyundai Motor recorded a revenue increase of 22%. The company’s market growth shows promise for its electric vehicle stock.
Current Key Metrics
Market Cap (KRW): 2,09,500 KRW
Net Income (KRW): 1,761,887 KRW
Ashok Leyland Electric Vehicles
Did you know that Ashok Leyland is the 4th biggest bus manufacturer in the world and spearheads truck manufacturing in India? This division is part of the Hinduja Group and has partnered with Sun Mobility to develop electric mobility solutions.
Finding a solution for e-mobility demands, Ashok Leyland is designing electric variants and has also initiated battery swapping in electric buses. Additionally, it has introduced many electric bus variants such as Circuit, HYBUS, Electric Euro 6 Truck, and is also preparing to launch the iBUS.
Current Key Metrics
Market Cap (Rs. in Cr.): 37,237Cr
Earning Per Share: 0
Price To Earnings Ratio: 0.00
Enterprise Value (Rs. in Cr.): 59348.74
Greaves Cotton
Expanding enterprise Greaves Cotton has ambitious plans for the electric vehicle segment. The plan is to be a significant contributor in both the top and bottom tiers. Greaves Cotton announced its first foray into the electric vehicle retail segment on September 9, 2021, with Ampere Electric. Ampere has entered the EV 2 wheeler market with a specialization in affordable mobility solutions. Ampere electric scooters are pocket-friendly. Within the 3W diesel-engine segment, the brand holds a market share of 60-65%. More than 30 Indian OEMs depend on GCL engines.
Current Key Metrics
Market Cap (Rs. in Cr.): 3,119Cr
Earning Per Share: 0
Price To Earnings Ratio: 0.00
Enterprise Value (Rs. in Cr.): 2842.21
JBM Auto
Leading auto components manufacturer JBM Auto Ltd manufactures buses, spare parts, and accessories. It also produces and sells sheet metal components, tools, dies, and moulds. Beyond this JBM also manages bus maintenance contracts. Its automobile components division produces 75% of the brand’s revenue. Under this portfolio, JBM produces auto systems and high-level assemblies. bringing it to the top of the electric vehicle stocks to watch for.
Current Key Metrics
Market Cap (Rs. in Cr.): 2,170Cr
Earning Per Share: 18
Price To Earnings Ratio: 24.85
Enterprise Value(Rs. in Cr.): 2775.
Exide Industries
Making it to the list of top electric vehicle stocks in India is Exide Industries Ltd. The leading manufacturer of storage batteries and related products in India. Exide also has another division, the Exide Life Insurance Company Ltd (ELI). This subsidiary promotes life insurance to clients through many channels. The selling channels include private agents, corporate agents, banks, and so on.
Apart from the storage batteries division, the company enjoys market leadership in almost every segment. It includes automotive, industrial, and submarine industries. Presently, the automotive industry produces 73% revenue, industrial yields 26% revenue, and submarine offers 3% revenue.
Current Key Metrics
Market Cap (Rs. in Cr.): 15,164Cr
Earning Per Share: 10
Price To Earnings Ratio: 17.77
Enterprise Value: 14948.84
Minda Industries
Another preeminent and versatile auto components manufacturer in India is Minda Industries Limited. It is a flagship firm of the N.K. Minda Group. Minda is a tier-1 supplier of automotive solutions to OEMs(Original Equipment Manufacturer). The company has its headquarters in Manesar, Haryana. Aside from this, Minda has, R&D, and manufacturing plants in Manesar, Pune, and Sonepat.
As a pioneering leader, Minda is the first car component producer to supply to electric vehicle manufacturers. Focused on R&D, it has a high-profile portfolio of electric vehicle clients.
Current Key Metrics
Market Cap (Rs. in Cr.): 21,192Cr
Earning Per Share: 12
Price To Earnings Ratio: 61.43
Enterprise Value: 22001.95
Himadri Speciality Chemical
Time to get EV savvy on your portfolio with Himadri Speciality Chemicals. They manufacture material for Li-ion Batteries. These Li-ion batteries are often used in electronic goods such as EVs, mobiles,etc. With expertise in the production of chemicals, Himadri provides nearly 70% of India’s demand for coal-tar-pitch. More importantly, Himadri manufactures naphthalene, carbon-based products, and SNF. Gradually over the last few years, the company has advanced its holdings to boost margins. The future seems glorious for Himadri ‘s electric vehicle stocks.
Current Key Metrics
Market Cap (Rs. in Cr.): 2,218Cr
Earning Per Share: 1
Price To Earnings Ratio: 46.72
Enterprise Value (Rs. in Cr.): 2799.81
Hero MotoCorp
As the world’s largest two-wheeler manufacturer for 18 years, Hero MotoCorp retains a leadership position. Thus it reigns with a place on this list. With a phenomenal market performance of 53,500 units sold, Hero Electric has had a smooth sailing financial year 2020-21. This year alone, it has clocked between 8,500 to 9,000 estimated monthly unit sales. The customer favorite is Hero Electric Atria, other popular models are Hero Electric Flash and Hero Electric Optima. Whereas Hero Electric Flash is a youth-centric vehicle. The brand aims to achieve more of an enjoyable customer experience, develop a distribution network and expand R&D. In its consistent efforts Hero Motocorp has produced superior return ratios with a ROCE (Return on capital employed) of over 25%. The company was one of the least affected by the pandemic because of its popularity in the rural segment.
Current Key Metrics
Market Cap (Rs. in Cr.): 56,940Cr
Earning Per Share: 156
Price To Earnings Ratio: 18.28
Enterprise Value(Rs. in Cr.):56886.14
Overall Market Analysis
Conclusively the future looks bright for the electric vehicle shares. A burgeoning opportunity is waiting to be utilized. Other players that also have a promising future in EV stock value are:
- Bajaj Auto is India’s largest motorcycle and three-wheeler exporter. It has recorded a revenue share from exports increase of 28.2% in FY10 to 51% in FY21. Bajaj’s revenue has increased with a CAGR rate (compound annual growth) of 9% over FY10-FY21.
- Eicher, the owner of iconic brand Royal Enfield, leads the premium division. In the 250cc plus luxury category, it enjoys a market share of 95%. Eicher Motors sales have grown with a CAGR of 7% during the period of FY10-FY21.
- Other strong players include Maruti Suzuki, Ather, Ola Electric Vehicle, etc.
Any development in the EV industry can see the after-effects in the associated businesses as well. Many companies have shown an avid interest in lithium battery production. This list casts an eagle’s eye view on the prospects of the top electric vehicle stocks in India. Besides, we have observed the leading electric vehicle and component manufacturers, their current presence, and market value in the EV segment. The Indian government has planned long-term programs to displace all internal combustion engines with EV’s by 2030. Let us wait and watch how far it will take us.
Disclaimer: This article is only for information purposes. Interested Investors are advised to seek experts’ advice before making any investment.
