Top 7 Electric Vehicle (EV) Stocks in India

Yes, electric vehicles will be used all across the world, from India to America and everywhere in between. With the introduction of electric vehicles, the Indian automobile industry is undergoing technical advancements. Electric car sales in India are expected to increase from over 5 lakh units in 2023 to over 5 million in 2030.  The goal to reduce pollution and thereby improve air quality, as well as the country’s reliance on imported oil, has bolstered the rationale for EV adoption.

(State UT) Region-wise Registered EV Sales – March 2022

(State UT) Region-wise Registered EV Sales – March 2022

 

Category-Wise EV Sales in March 2022

Category-wise EV Sales in March 2022

According to the latest projection from the Indian Investment Banks, by 2025, 20% of all new cars sold globally will be electric and at the COP26 Summit, India committed to an aspirational goal of having at least 30% of private vehicles as Electric Vehicles (EVs) by 2030. The Indian government now provides incentives and tax benefits to eco-friendly vehicles, such as reduced service tax (GST), 100% FDI through the automatic route in EV space, incubation programs, shared facilities for prototyping and small scale manufacturing, financing support through Credit Guarantee Scheme for Startups which decreases the entire cost of electric vehicles. EVs are worthwhile investments because they will cut people’s travel costs in the long run. As a result, it appears to be an appealing option for investors interested in the automobile industry’s future.

Registered EV Sales Trend in India (March 2021–March 2022)

Registered EV Sales Trend in India (March 2021–March 2022)

So let’s see below what are the top EVs industries in which investors can invest:-

The Top Electric Vehicle Stocks in India Include:-

1> Tata Motors Ltd:

Tata Motors plans to invest $2 billion in electric vehicles over the next five years. On the valuation front, it is trading at Rs.436.20, the book value of Rs.134.23 and P/Bv multiple of 3.25 times.

2> Mahindra & Mahindra Ltd:

The management of the company expects to release 16 further electric vehicles in the SUV and light commercial vehicle classes by 2027. It intends to invest 3,000 crores in the electric vehicle business this year. On the valuation front, it is trading at Rs.922.40, the book value of Rs.347.32 and P/Bv multiple of 2.66 times. EPS is Rs.43.93 and P/E multiple is 21 times.

3> Maruti Suzuki Ltd:

Just weeks after announcing a rupee 100 billion investment in electric vehicles in India, Maruti Suzuki is forming a “New Mobility Division” with a dedicated electric vehicle and digitization team. On the valuation front, it is trading at Rs.7887.95, the book value of Rs.1730.24 and P/Bv multiple of 4.56 times. EPS is Rs.107.42 and P/E multiple is 73.43 times.

4> Ashok Leyland Ltd. (Commercial EV Vehicles Worldwide):

In the next five years, it plans to invest $150-200 million in the electric vehicle industry. It also plans to release its first electric light commercial vehicle (e-LCV) in 2022, with 2,000 units already ordered. On the valuation front, it is trading at Rs.128.50, the book value of Rs.25.45 and P/Bv multiple of 5.05 times.

Also, some other leading ancillaries may be able to capture the EV market and can contribute in big way:-

5> Tata ELXSI (Software segment):  

Tata Elxsi and Renesas will collaborate to accelerate eMobility adoption, particularly the two-wheel and light EV segments, assisting clients in overcoming time-to-market and technology complexity.  It also performs e-vehicle testing for EV manufacturers, including functional testing, diagnostic tests, drive scenarios, and range verification. On the valuation front, it is trading at Rs.7845.55, the book value of Rs.257.06 and P/Bv multiple of 30.52 times. EPS is Rs.88.26 and P/E multiple is 88.89 times.

6> Tata Power (Charging Infrastructure Segment):

Over 1,000 electric vehicle charging stations have recently been deployed across the country by the corporation. Tata Power to install 5,000 Electric Vehicle charging points across Maharashtra. On the valuation front, it is trading at Rs.248.35, the book value of Rs.66.59 and P/Bv multiple of 5.36 times. EPS is Rs.5.36 and P/E multiple is 46.33 times.

7> Amara Raja Batteries Ltd (Battery Segment):

Over the next five to eight years, it plans to invest $800 million to $1 billion in the construction of a Gigafactory.  The company has created India’s only technology hub to develop lithium-ion cells.  It also teamed up with the Delhi government to build charging stations in strategic locations. On the valuation front, it is trading at Rs.561.00, the book value of Rs.256.11, and the P/Bv multiple of 2.19 times. EPS is Rs.35.31 and the P/E multiple is 15.89 times.

EVs are the future prospects of the Indian Automobile sector but India’s adoption of electric vehicles is slightly in trouble due to a lack of significant infrastructure. Therefore, to promote an efficient manner, the participants should first ensure that the system can supply enough energy to swiftly charge a large number of EVs, and the second is to ensure that the distribution system is in place to charge the correct vehicles at the right time. Moreover, ramp up of infrastructure, an adaptation to climate change, and focus on needs related to investment may position this sector as an attractive investment destination which would further help to create wealth.

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