Electric Vehicle Stocks India: Electric vehicles are gaining widespread recognition in India. Alarming rates of emission and skyrocketing fuel prices are driving the adoption of electric vehicles among the masses and therefore EV stocks are the hottest trend. Finding the one to ride the trend could be a daunting task as several companies have yielded great wealth and their valuations have increased manifolds. When it comes to EVs, it is not only the carmaker but the industry that is composed of companies focused on its components. Therefore, it is advisable to play the EV trend by buying the partnership in the companies involved in the supply chain. It could be a company doing business in making lithium batteries, charging stations, related parts, and more. Parking your funds wisely in such companies could deliver a handsome return as the industry is quite young and growing rapidly.
You might be familiar with many names like Tata Motors and Ashok Leyland, but there are other players are also exhibiting opulent growth. Let's find out EV stocks that fit your pocket and hold the potential to exceed your expectations in terms of earnings.
"It is important to bear in mind that stocks move in response to market shocks and sentiments. One must therefore be on the constant lookout for developments among peer companies as well. Every development is an indicator of the future outlook and stock price movements are indicators of the market sentiments. You should recognise trends and patterns with some foundational research before investing in stocks," Rachit Chawla, CEO & Founder, Finway FSC, said.
1. GREAVES COTTON
Greaves Cotton manufactures engines, engine applications, and trades power tillers, engine spares, electric vehicles, and infrastructure equipment, among other things. In the 3W diesel engine segment, GCL has a market share of 60%– 65%. GCL provides engines to over 30 Indian original equipment manufacturers (OEMs)
Market Capitalisation: Rs 3,731 Cr | ROE: 0.48 %
Investment Rationale: The company's debt has been lowered. The business is practically debt-free.
2. JBM AUTO
JBM Auto Ltd manufactures and sells sheet metal components, tools, dies, and moulds among other things. It also manufactures buses as well as their spare parts and accessories over and above managing bus maintenance contracts.
Automobile Components Segment: This division generates 75% of the company’s revenue. It produces auto systems and high-level assemblies in this division. Its product portfolio includes chassis and suspension systems, axles, twist beams, lower control arms, subframes, exhaust systems, air tanks, fuel tanks, entire cowl assemblies, and pedal boxes, exhaust systems, air tanks, fuel tanks, complete cowl assemblies and pedal boxes.
Market Capitalisation: Rs 2,372 Cr | ROE: 6.80 % | Stock P/E: 48.1
3. ASHOK LEYLAND
The Hinduja group's flagship company, Ashok Leyland, has a long history in the domestic medium and heavy commercial vehicle (M&HCV) industry. The company has a strong brand name and a well-diversified distribution and service network across the country. Headquartered in Chennai, it is one of the fully integrated manufacturing enterprises in the world, with a presence in 50 countries. Right since inception, they have managed over 8,00,000 drivers through their driver training institutes across India. In 2016, they introduced India's first electric bus and Euro 6 compatible vehicles. They are currently working on expanding their EV range.
Market Capitalisation: Rs 36,210 Cr | ROE: 2.11 %
4. EXIDE INDUSTRY
In India, Exide Industries Ltd is primarily involved in the production of storage batteries and related products.Exide Life Insurance Company Ltd (ELI), a subsidiary of the company, sells life insurance to customers through a variety of channels, including individual agents, corporate agents, banks, and so on.
Storage Batteries Segment: The firm is India's leading storage battery manufacturer, dominating practically every category in the automotive, industrial, and submarine industries. Currently, the automotive industry generates 73% of the segment's revenue, followed by industrial (26%) and submarine (3%).
Market Capitalisation: Rs 15,160 Cr | ROE:11.8 % | Stock P/E: 18.7
Investment Rationale: The business is practically debt-free. The company has been paying out a strong 29.99% dividend.
5. TATA MOTORS
Tata Motors is a world-renowned vehicle manufacturer. It is a part of the prestigious Tata group, which supplies a comprehensive range of automobiles, sport utility vehicles, trucks, buses, and defence vehicles throughout the world.It operates through a robust global network of subsidiaries, associate firms, and joint ventures (JVs) in various parts of the world.
Long-Term Strategy: Tata Motors and Jaguar Land Rover are both aiming to electrify their fleets. Tata Motors' Tigor EV and Nexon EV are now the industry’s leading EV models in India. In 2020, it sold 2,600 electric vehicles, resulting in a market share of 63%.
Market Capitalisation: Rs 107,356 Cr | ROE: 22.9 %
Investment Rationale: Over the last quarter, promoter holdings have climbed by 5.36% which is a healthy sign.
6. HIMADRI SPECIALITY CHEMICAL
Himadri Speciality Chemical specialises in the production of carbon-based products and chemicals. It is India's leading coal pitch manufacturer and the country's sole advanced carbon material manufacturer. It is also India's major producer of naphthalene and SNF.
It produces a variety of carbon-based products and chemicals. Carbon black, speciality carbon black (SCB) Naphthalene, Advanced carbon material, SNF (Sulphonated Naphthalene Formaldehyde), and speciality oils comprise the major selling products of the company. Over time, it has shifted its portfolio from low-value to high-value products to increase margins.
Market Capitalisation: Rs 2,283 Cr | ROE: 2.69 % | Stock P/E: 48.1
7. NATIONAL ALUMINIUM
National Aluminium Company Limited, abbreviated as NALCO, is a Navratna group ‘A' CPSE that was founded in 1981. NALCO is in the business of producing and selling alumina and aluminium. According to a Wood McKenzie report, the company is the lowest-cost producer of metallurgical grade alumina and the lowest-cost producer of bauxite in the world. NALCO derives the majority of its profits from the sale of alumina and is a smaller player in terms of aluminium capacity.
Market Capitalisation: Rs 15,611 Cr | ROE: 12.6 % | Stock P/E: 12.0
8. HBL POWER SYSTEM
HBL's first produced and successfully developed aircraft batteries, which led to the company offering the world's widest range of specialised batteries. Their knowledge of batteries generated opportunities and ideas for diversification. The company expanded into new businesses and markets that relied upon its batteries. Industrial electronics, defence electronics, and railway electronic signalling are among the key markets that it serves.
Market Capitalisation: Rs 1,543 Cr | ROE: 2.24 % | Stock P/E: 88.5
Investment Rationale: The company's debt has been reduced. The company is nearly debt-free. The company has consistently maintained a healthy dividend payout of 44.12%.
9. TATA POWER
Tata Power Ltd's primary business is the generation, transmission, and distribution of electricity. In the future, the company intends to shift its capacity concentration away from thermal sources and toward clean energy sources. It aims to increase the share of clean and green capacity to 60% of its total capacity by 2025, 80% by 2030, and achieve carbon neutrality by 2050 by phasing out thermal projects.
Market Capitalisation: Rs 39,526 Cr | ROE: 3.41 % | Stock P/E: 59.7
10. MINDA INDUSTRIES
Minda Industries Limited, a flagship company of the N.K. Minda Group is one of India's most diverse auto component manufacturers. It is a technology leader in the automotive components industry and a tier-1 supplier of proprietary automotive solutions to OEMs. Headquartered in Manesar, Haryana, Minda has engineering, R&D, and manufacturing facilities in Manesar, Pune, and Sonepat.
Market Capitalisation: Rs 19,784 Cr | ROE: 9.97 % | Stock P/E: 96.4
Investment Rationale: The company is expected to report robust quarterly results. The company's median sales growth over the last ten years is 23.58% which is a healthy sign.
(Disclaimer: This article is only for information purposes. Readers/Investors are advised to seek experts' advice before making any invement)