Shares of electric bus maker Olectra Greentech surged 10% to Rs 711 per share in intraday trade on Monday after the company’s consolidated net profit rose 52% year-on-year to Rs 27.01 crore in the January-March quarter (Q4FY23).

The company is mainly engaged in the manufacture of electric passenger cars and composite polymer insulators.

Shares of Olectra have risen 44% so far this calendar year (CY23), compared with a 1% gain for the S&P BSE Sensex over the same period. Earlier, the stock rose to a 52-week high of Rs 743 per share on March 10, 2023.

The company’s revenue rose 39% YoY to Rs 375.91 crore in Q4FY23, while overall FY23 revenue rose 84% to Rs 1,090.7 crore. On the other hand, consolidated net profit rose 86% to Rs 65.59 crore in FY23 compared to Rs 35.35 crore in FY22.

Regarding the financial results, management said that despite supply chain hurdles, the company focuses on improving manufacturing capabilities, while technological capabilities help maintain leadership in electric vehicles.

Meanwhile, analysts at Geojit Financial Services recommend accumulating the stock, citing capacity expansion plans and strong earnings growth.

“The adoption of EVs on buses is likely to accelerate this year, and the centre plans to procure 50,000 buses with an investment expenditure of Rs 1,000 crore. We started coverage on Olectra with a target price of Rs 738 per share, equivalent to FY25 per 35 times earnings per share (EPS),” they wrote in an April note.

With the formation of an electric bus joint venture with BYD (which it designed in-house) in China, the company is expanding its product line in the electric vehicle segment to include three-wheel electric vehicles and electric truck dumpers.

The company has also secured its largest-ever order of 2,100 electric buses worth Rs 3,675 crore from Brihanmumbai Electric Supply and Transport (BEST) in Maharashtra.