Signals, Powered By EquityPandit
Introduction
As India strides towards a more environmentally friendly future, there is growing anticipation for a significant rise in the electric cars and trucks market by 2024. This in-depth article delves into the landscape of electric vehicle (EV) stocks in India, shedding light on the companies at the forefront of innovation, sustainability, and market capitalization.
By closely examining the dynamic landscape of electric mobility, we will explore the key factors driving these companies’ performance. This detailed analysis aims to provide investors and EV enthusiasts with valuable insights into India’s rapidly expanding EV market. Stay tuned for an in-depth exploration of India’s electric vehicle stocks segment.
Top Electric Vehicle Stocks in India in 2024
| Serial No. | EV Stock Name | Market capitalisation (Rs in crores) | Market Return in a Year | Category of Market Cap | Segment |
| 1 | Exide Industries Limited | 47,944 | 21.56% | Large | Manufactures Electric Vehicle Batteries |
| 2 | TVS Motors Company Limited | 1,17,208 | 21.63% | Large | Deliver Electric scooters |
| 3 | Mahindra & Mahindra (M&M) | 3,37,120 | 21.68% | Large | Manufactures Sport Utility Vehicles |
| 4 | Hero Motocorp Limited | 1,10,305 | 21.69% | Large | Manufactures Electric Motorcycles and scooters |
| 5 | Olectra Greentech Limited | 15, 118 | 21.69% | Mid | Manufactures Electric Buses and Insulators |
This blog covers in detail the fundamental, and technical analysis and the prospects of the best five EV Stocks in India in 2024.
Exide Industries Limited
Fundamental and technical analysis
The company demonstrates high management efficiency with an impressive return on equity (ROE) of 16.97%. Additionally, it maintains a low average Debt to Equity ratio of 0, indicating a strong financial position.
However, the quarterly profit after tax (PAT) has decreased by -15.3% to Rs 184.74 crores. Despite this, the technical analysis suggests that the stock is currently in a bullish range, with the technical trend improving from mildly bullish on 10-Jul-24.
Bullish factors, such as MACD, Bollinger Band, and KST, influence the stock. Despite a return on equity (ROE) of 6.8%, the stock is considered to have an expensive valuation with a 3.7 Price to Book Value. It also trades at a premium compared to its average historical valuations.
While the stock has generated an impressive return of 124.13% over the past year, its profits have risen by 6.6%. The company’s PEG ratio stands at 8.4, indicating a certain level of overvaluation.
Notably, institutional holdings in the company are high at 32.13%. The stock has demonstrated market-beating performance in both the long term and the near term.
It has outperformed the benchmark index over the past 3 years. The stock has surpassed the BSE 500 in the past 3 years, 1 year, and 3 months, while also achieving a remarkable 124.13% return in the last 1 year. This shows strong potential for continued growth and performance.
About the Company
Exide Industries has been actively supporting the fast-growing community of electric vehicle users. They currently offer four different models of golf cart batteries, specifically designed to meet industry demands and manufactured at top-notch international-standard facilities.
Exide’s golf cart batteries have been thoroughly tested for quality and performance and have set high industry standards. With 75 years of experience, Exide has developed innovative compositions and a state-of-the-art manufacturing process to create golf cart batteries that excel in deep cyclic operations.
These batteries suit golf carts and similar vehicles, such as floor cleaners and special electric cars. Golf carts are silent electric vehicles used for smooth transportation, typically for short distances on level terrain, and can carry two to eight people.
Beyond their traditional use on golf courses, golf carts are popular in various settings worldwide, including tourist spots, airport lounges, and parks. Due to India’s rapid growth, the use of golf carts has multiplied, leading to a thriving industry.
Further, Hyundai and Kia have teamed up with Exide Energy Solutions Ltd, an Indian battery manufacturer, to start making electric vehicle (EV) batteries in India. They plan to focus on lithium-iron-phosphate (LFP) cells as part of their EV expansion in the Indian market.
TVS Motors Company Limited
Fundamental and technical analysis
The data show that the company has experienced healthy long-term growth, with net sales growing at an annual rate of 14.19% and operating profit at 16.88%. The positive results on March 24 indicate the company’s strong performance.
Furthermore, in the half-year period, net sales have grown by an impressive 25.21% to reach Rs 20,156.41 crore, while the profit after tax (PAT) has increased by 35.81% to Rs 865.73 crore. Additionally, the return on capital employed (ROCE) is at its highest at 22.97%, demonstrating the company’s efficiency in utilising its capital.
From a technical analysis point of view, the stock is currently in a bullish range. The technical trend has shown improvement, generating returns of 15.92% since May 14, 2024. Various technical indicators, such as MACD, Bollinger Band, and KST, align with the bullish outlook for the stock.
Moreover, the stock has high institutional holdings at 41.08%, indicating confidence from institutional investors who possess greater capability and resources to analyse company fundamentals than retail investors.
Over the past three years, the stock has delivered consistent returns. In the last year alone, it has achieved an impressive 84.54% return, outperforming the BSE 500 in each of the last three annual periods. These results instill confidence in the stock’s potential for further growth.
About the Company
TVS Motor Company has partnered with Zomato to accelerate eco-friendly deliveries using electric scooters. The collaboration includes providing iQube Electric scooters to delivery partners in Hyderabad and aims to expand the use of electric vehicles for last-mile deliveries.
TVS Motor plans to roll out over 10,000 electric scooters for last-mile delivery services in the next two years and will set up charging stations to support Zomato’s efforts to reduce carbon emissions. This collaboration is a significant step in promoting the adoption of electric vehicles among delivery partners.
Mahindra & Mahindra (M&M) Limited
Fundamental and technical analysis
The company has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 5.82% and operating profit at 12.35%. On March 24, the company reported positive results.
The Return on Capital Employed (ROCE) for the half-year is the highest at 13.58%. The net sales for the quarter reached the highest level at Rs 35,451.73 crore, and cash and cash equivalents for the half-year are at their peak at Rs 12,012.75 crore.
From a technical analysis standpoint, the stock is currently in a bullish range. The technical trend has improved from “Mildly Bullish” on July 9, 2024, and has since generated a return of -6.86%. The
Moving Average Convergence Divergence (MACD) and Know Sure Thing (KST) technical indicators for the stock also show bullish signals.
With a return on capital employed (ROCE) of 13.6 and an attractive valuation of 2.9 Enterprise value to Capital Employed, the stock presents the potential for a profitable investment. Furthermore, it is trading at a discount compared to its average historical valuations.
Over the past year, the stock has generated an impressive return of 73.35%, while the company’s profits have increased by 21.1%. The company’s price/earnings to growth (PEG) ratio is 1.4. Additionally, the company has shown consistent returns over the last 3 years.
In the last year, the stock has outperformed the market index in the previous 3 annual periods, demonstrating its potential for future growth.
About the Company
Mahindra & Mahindra (M&M) Ltd, a leading manufacturer of sports utility vehicles (SUVs) in India, is strategically focused on further strengthening its traditional SUV business while simultaneously expanding its presence in the electric vehicle (EV) market.
This dual approach is driven by the company’s impressive growth in the traditional SUV segment, the evolving landscape of EV adoption, and the increasing popularity of hybrid vehicles.
Additionally, M&M has announced plans to invest Rs 12,000 crore in the EV business over the next three years, signaling its commitment to playing a significant role in the future of mobility.
This investment underscores M&M’s long-term vision of sustainability and innovation in the automotive industry.
Hero Motocorp Limited
Fundamental and Technical Analysis
The company has continued to exhibit a strong level of management efficiency, achieving a notable Return on Equity (ROE) of 19.78%.
Additionally, its conservative financial approach has resulted in a low Debt to Equity ratio (average) of 0, reflecting a healthy balance between debt and equity. The company has delivered positive financial results for the past 5 consecutive quarters.
The Profit After Tax (HY) has reached Rs 2,028.42 crore, demonstrating a substantial growth of 32.48%. Furthermore, the Return on Capital Employed (ROCE) for the half-year has reached an impressive high of 29.10%, indicating efficient capital utilisation.
The quarter’s Profit Before Depreciation, Interest, and Taxes (PBDIT) has also achieved a significant milestone, totalling Rs 1,393.57 crore.
From a technical perspective, the stock is currently positioned within a bullish range, reflecting positive market sentiment. The technical trend has shown encouraging improvement, transitioning from a mildly bullish stance on 14-May-24 and yielding returns of 9.66%. The Moving Average Convergence Divergence (MACD) and Know Sure Thing (KST) technical indicators for the stock signal a bullish outlook, adding further weight to the positive market sentiment.
Assessing the stock’s valuation, it’s noteworthy that it holds a commendable ROE of 21.8 and a fair valuation, with a price-to-book value of 6.2. However, it’s important to consider that the stock trades at a premium compared to its average historical valuations.
Over the past year, while the stock has delivered a remarkable return of 78.36%, its profits have also risen substantially by 37.3%. The company’s PEG ratio stands at an attractive 0.8, reinforcing its strong growth potential.
Lastly, institutional holdings in the company are notably high, at 56.69%, underscoring the confidence of institutional investors in the company’s fundamental strength and growth prospects, especially in comparison to retail investors.
About the Company
Hero MotoCorp is gearing up to launch three new electric two-wheelers next year. These will include electric scooters and motorcycles. The company recently unveiled the Vida electric dirt bike concept and plans to launch the electric scooter in the mid-segment.
Hero MotoCorp’s CEO, Niranjan Gupta, announced plans to launch electric scooters in the mid-price and economy segments under the Vida range. The company also revealed its intention to introduce electric motorcycles co-developed with Zero Motorcycles. This strategic partnership combines Zero’s expertise in electric motorcycles with Hero’s manufacturing and marketing capabilities.
Olectra Greentech Limited
Fundamental and Technical Analysis
On March 24, Olectra Greentech Ltd reported a significant decrease in Operating Profit by 22.33%, leading to negative financial results. This decline marks the company’s second consecutive quarter of negative results, indicating a challenging economic period.
Amid this challenging financial landscape, Olectra Greentech Ltd has shown stability in its 9-month INTEREST, with a remarkable growth of 55.00% to Rs 35.82 crore. However, the company experienced a significant decline in NET SALES (Q), which fell by 23.17% to Rs 288.81 crore. Furthermore, the OPERATING PROFIT TO INTEREST (Q) ratio hit a low of 2.64 times.
With an ROE of 8.4, the company’s valuation is deemed very expensive, with a price-to-book value of 16.6. The stock is trading at a premium compared to its average historical valuations.
Over the past year, Olectra Greentech Ltd.’s stock has displayed promising growth, yielding a return of 40.87%. The company’s profits have risen by 17.1%, and its PEG ratio is 11.5, indicating its potential for further growth.
About the Company
Olectra Greentech Ltd is recognized as a pioneer in electric bus manufacturing and insulators in India, contributing significantly to the development of Power Transmission and distribution in the country. Embracing its vision to support the environment, the company is committed to developing innovative solutions for society and has embarked on a growth path in new-age green technology.
Olectra Greentech Ltd (OGL) has achieved a milestone by surpassing 10,000 units in its e-bus order book and extended its cooperation agreement with BYD. The company’s electric order book reached 10,969 units as of March 31, 2024, with 507 buses delivered in FY24.
Olectra also secured the ‘world’s largest e-bus order of 5,150 units’ from MSRTC and an order to supply 3,000 electric buses from BEST, Mumbai.
The company is setting up a new Greenfield factory to increase capacity and enhance technology capabilities. India’s electric bus market reported a growth of 84% in FY24. The central Government plans to replace about 8 lakh diesel buses with battery-powered ones by 2030.
Frequently Asked Questions (FAQs)
What are the different types of EVs?
There are three main types of electric vehicles (EVs): battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs).
What are BEVs, PHEVs, and HEVs powered with?
BEVs are powered only by electric motors, PHEVs have electric motors and an internal combustion engine, and HEVs use both at the same time.
What are the advantages of EVs?
Electric vehicles (EVs) have many advantages over gas-powered cars. They cost less to maintain, use less fuel, and may qualify for government incentives. They require less maintenance and do not need oil changes, transmission maintenance, etc.
What are some challenges facing the EV industry?
The electric vehicle (EV) industry has several challenges. These include the high cost of purchasing EVs, concerns about the driving range, limited vehicle options, and the availability of charging stations.
What are some safety concerns with EVs?
If you see exposed electrical components, wires, or high-voltage batteries, be aware that they can give you an electric shock. In case of a fire, call 101 immediately. Damaging the vehicle or battery can release toxic or flammable gases and cause a fire.
How can you charge an EV?
When it comes to charging your electric vehicle, most charging happens at home, which is more convenient, cost-effective, and gives you more control than using public charging stations. Public charging stations can be Level 2 or Level 3 DC Fast Chargers.
Ready to invest like a pro? The Unicorn Signals app equips you with 100+ Free tools and knowledge you need to succeed. Download the Unicorn Signals app and gain access to daily stock lists and insightful market analysis and much more!
