Exploring the Promising Landscape of: Electric Vehicle Stocks in India

Electrifying Investments: Unveiling Top Electric Vehicle Stocks in India for Savvy Investors – A recent study by GrandView Research forecasts a remarkable 94.4% compound annual growth rate for the Indian electric vehicle market, projecting a valuation of $152.21 billion by 2030. This substantial growth underscores the promising prospects for investment in electric vehicle stocks. For an in-depth exploration of the top 10 electric vehicle stocks in India, consult this article.

Electric Vehicle Stocks in India 2023

Disclaimer: It’s essential to note that the stocks listed herein are selected based on market popularity and brand value, serving an educational purpose rather than providing specific investment recommendations. Conduct thorough research before committing to any investments.

The Top 10 Electric Vehicle Stocks in India

Stock

Category type

Market cap 

1-yr returns(in %age) 

5-yr returns (in %age) 

TATA Motors Auto manufacturer Rs. 1,28,866 Cr. -17 -3
Mahindra & Mahindra Auto manufacturer Rs. 1,54,361 Cr.  51 64
Hero MotoCorp  Auto manufacturer Rs. 54,853 Cr. 13 -26
TATA ELXSI  EV software Rs. 39,097 Cr. 8 493
Exide Industries Ltd Battery manufacturing Rs. 15,364 Cr. 9 -19
Indian Oil Corporation Charging Stations Rs. 1,15,229 Cr. 6 30
KPIT Technologies Ltd Battery manufacturing Rs. 19,618 Cr. 18 626
TATA Power Co. Ltd Charging stations Rs. 65,888 Cr. -5 134
Samvardhana Motherson International Ltd Auto parts & Wiring Rs. 52,145 Cr. -16 -26
Hindalco Industries Ltd Non-Ferrous Metals  Rs. 105,787 Cr. 5 82

 

Key Considerations for Electric Vehicle Stock Investments

1. Thorough Research

Comprehensive research is paramount to identify undervalued stocks poised for substantial returns. This process involves three vital components:

  • Business Model Analysis: Understand the strengths and weaknesses of a company’s business model by analyzing annual reports, trade articles, and financial websites.
  • Financial Analysis: Evaluate a company’s financial strength through six key ratios, such as Earnings per Share (EPS), Price-to-Earnings (P/E) ratio, and more.
  • Effective Management: The leadership’s quality and decision-making capabilities are pivotal for long-term success.

2. Cautiously Assess Aggressive Players

For companies making ambitious bets on electric vehicles, it’s crucial to scrutinize their approach to debt and profitability. Factors to consider include a low debt-equity ratio and a track record of profit growth over recent years.

3.  Explore the Wider EV Ecosystem

Apart from electric vehicle manufacturers, delve into the broader EV ecosystem, including charging infrastructure, battery swapping firms, EV accessory producers, software developers, and companies involved in battery production, mining, and metals.

This holistic approach enhances portfolio diversification and ensures a more comprehensive investment strategy. To this end, the selection of the best electric vehicle stocks encompasses participants from across the EV ecosystem.

To start your journey into the world of electric vehicle stocks, consider the following top contenders:

1. TATA Motors

Market Cap Rs. 1,28,866 Cr.
EPS Rs. -2.09
P/E ratio 0
P/B ratio 6.74
FCF per share 95.20
ROE -8.93 %
ROCE 1.15%
Debt to equity ratio 1.17
Profit Growth (last 5 years) 7.38%

 

TATA Motors holds an 87% market share in the Indian electric vehicle market, offering a diverse range of automobiles, commercial vehicles, sports utility vehicles, and defense vehicles. The company’s commitment to research and development, despite significant debt, positions it well for future growth.

2. Mahindra & Mahindra

Market Cap Rs. 1,54,361 Cr.
EPS Rs. 49.59
P/E ratio 25.04
P/B ratio 3.75
FCF per share 37.54
ROE 13.44%
ROCE 15.34%
Debt to equity ratio 0.17
Profit Growth (last 5 years) 6.26%

 

Mahindra & Mahindra, a leading electric three-wheeler manufacturer, expects a significant portion of its portfolio to consist of electric passenger cars by 2027. The company’s strong market presence and track record in various automotive segments make it a compelling choice.

3. Hero MotoCorp

Market Cap Rs. 54,853.45 Cr.
EPS Rs. 132.80
P/E ratio 20.67
P/B ratio 3.34
FCF per share 82.94
ROE 15.99%
ROCE 21.15%
Debt to equity ratio 0
Profit Growth (last 5 years) -6.04%

 

Hero MotoCorp stands as the world’s largest two-wheeler manufacturer with a 48% market share in India. Its investments in electric vehicle startups and collaborations with global electric motorcycle producers demonstrate a commitment to the evolving EV landscape.

4. TATA ELXSI

Market Cap Rs. 39,097.15 Cr.
EPS Rs. 107.58
P/E ratio 58.36
P/B ratio 23.11
FCF per share 54.23
ROE 37.23 %
ROCE 51.20%
Debt to equity ratio 0
Profit Growth (last 5 years) 25.75%

 

Tata Elxsi specializes in engineering and AI-based digital services for electric vehicles. A global footprint and engagement in EV software projects underscore its potential. With consistent profit growth and no debt, it’s a strong contender in the EV sector.

5. Exide Industries Ltd

Market Cap Rs. 15,364 Cr.
EPS Rs. 56.43
P/E ratio 3.2
P/B ratio 1.39
FCF per share -7.51
ROE 53.53 %
ROCE 65.81%
Debt to equity ratio 0.05
Profit Growth (last 5 years) 46.52%

 

Exide Industries showed robust performance in 2022, marked by significant increases in net profit and sales. Its focus on battery management systems and promising growth prospects make it an intriguing option for investors.

6. Indian Oil Corporation Ltd. (IOCL)

Market Cap Rs. 115,229 Cr.
EPS Rs. 41.13
P/E ratio 23.13
P/B ratio 1.53
FCF per share -12.64
ROE 5.50 %
ROCE 7.04%
Debt to equity ratio 0
Profit Growth (last 5 years) 2.96%

 

Indian Oil Corporation, a major player in India’s oil refining and petroleum marketing sectors, also has an extensive network of EV charging stations. With a high dividend yield and low P/E, it’s an attractive choice for long-term investors.

7. KPIT Technologies Ltd

Market Cap Rs. 19,618 Cr.
EPS Rs. 11.6
P/E ratio 61.8
P/B ratio 14.1
FCF per share 9.12
ROE 21.5 %
ROCE 24.1 %
Debt to equity ratio 0.13
Profit Growth (last 3 years) 47.34%

 

KPIT Technologies’ focus on sodium-ion battery technology and software solutions for software-defined cars positions it for significant growth. The company’s impressive profit growth and anticipated earnings growth suggest a promising future.

8. TATA Power Co. Ltd

Market Cap Rs. 65,888 Cr.
EPS Rs. 7.96
P/E ratio 25.9
P/B ratio 2.57
FCF per share 6.90
ROE 8.42 %
ROCE 9.30 %
Debt to equity ratio 2.07
Profit Growth (last 5 years) 47.58%

 

TATA Power Company’s commitment to renewable energy and electric vehicle charging infrastructure places it at the forefront of sustainable initiatives. Its robust growth over the last three years further solidifies its position.

9. Samvardhana Motherson International Ltd

Market Cap Rs. 52,145 Cr.
EPS Rs. 1.27
P/E ratio 64.2
P/B ratio 2.52
FCF per share 0.91
ROE 5.44%
ROCE 8.09 %
Debt to equity ratio 0.68
Profit Growth (last 5 years) 7.06%

 

Samvardhana Motherson excels in automotive component production, supplying a wide range of components for electric two-wheelers and large EVs. Recent orders and its presence in the EV market make it an intriguing prospect.

10. Hindalco Industries Ltd

Market Cap Rs. 105,787 Cr.
EPS Rs. 61.6
P/E ratio 7.64
P/B ratio 1.16
FCF per share 17.40
ROE 18.5%
ROCE 16.2%
Debt to equity ratio 0.74
Profit Growth (last 5 years) 28.75%

Read also – Upstox Review 2023: A Comprehensive Look at the Discount Broker

Hindalco Industries, a prominent copper and aluminum producer, stands to benefit from increased demand for these metals in the electric vehicle sector. Its substantial growth over the last five years positions it as a key player in the industry.

Beyond electric vehicle stocks, explore further insights into the Indian stock market and top companies across various sectors for a well-rounded investment strategy.

Leave a comment

Vito Mielnicki Jr.’s Dominant Triumph: A First-Round Knockout Saga Unprecedented Rainfall Floods New York City Disease X: A Looming Pandemic Threat Cowboys’ Dominant 40-0 Victory Over Giants: A Rainy Night Rout Tributes Flow as Tamil Actor G Marimuthu Succumbs to Heart Attack