Here we will provide you the understanding of best top 10 electric vehicle stocks in India.
What is Electric Vehicle Stock?
Electric vehicle stock refers to the shares of the company that are involved in the manufacturing, development, and sale of electric vehicles, including batteries, component suppliers (electric motors, power electronics, etc.), and charging stations ( AC and DC).
The electric vehicle industry has gained significant attention and traction due to growing concerns about environmental sustainability and a shift towards cleaner and more sustainable transportation alternatives. As the focus of the Indian government is on electric mobility, the best EV stocks are becoming the popular choice of users.
Points to Consider Before Investing in EV Stocks
Indian automobile companies have shown remarkable growth in electric vehicles, so if you want to invest in a trustworthy industry, you should go ahead with EV stocks. But before investing in EV-related stocks, you need to consider the given facts:
- Before investing in EV stocks, you should do an in-depth search, as it is crucial to understand the growth of a company based on historical data.
- Sometimes a company can completely buy out another one and merge them to form a new company. As an investor, you must thoroughly check the “merger and acquisition’ before investing in the stock market.
- The government’s investment activity in electric vehicles may vary across countries and regions, but you should verify it once you plan to invest in EV stocks.
- Although it is difficult to predict anything in the stock market, collaboration between the Indian government and automaker companies ensures further development in the EV stocks market.
- Customers’ reviews and satisfaction play a crucial role in knowing clearly about any company, which can be helpful in deciding whether to invest in electric vehicles or not.
Also Read:
What Is An Electric Vehicle Conversion or Retrofit?
How To Increase The Range of Electric Car
How To Grow Your Business With EV charging station
Best Top 10 Electric Vehicle Stocks
The electric vehicle industry has been a focal point for investors due to the growing interest in sustainable transportation and a shift towards clean energy. Several companies have been prominent in this sector, and their stocks have garnered attention. Some well-known electric vehicle companies in electric vehicle stocks include:
1. Mahindra & Mahindra:
Mahindra & Mahindra is one of the most well-diversified automobile stocks and it is among the best top 10 electric vehicle stocks. It has the ability to strengthen its position in the electric vehicle stock market. It is in two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and even in agriculture motors. In the agriculture segment, it focuses on the sale of tractors, spares, and other services.
Besides the automotive market and farm equipment, it also deals in hospitality, information technology, logistics, real estate, renewable energy, construction equipment, power backup, etc.
Mahinda & Mahindra is a big company, so its market cap is Rs. 1,81,381 crore and its return on capital employed (ROCE) is 12.7%. The sales growth of the last five years is only 5.66%, but its profit growth is 9.96%. In March 2022, the sales of vehicles were Rs. 90,171, and in March 2023, they jumped to Rs. 121,269 crores.
Mahindra & Mahindra’s eXUV400 is the fastest-selling electric SUV in India. In manufacturing EVs, it focuses on a planet-friendly approach, and Mahindra & Mahindra was included in the Dow Jones Sustainability Index (DJSI) 2022 for the second consecutive year, which can take lead to the electric vehicle stock market.
2. Endurance Technologies:
It is a leading auto manufacturing company in India. It focuses on auto components and mainly includes aluminium die-casting, suspension, transmission, shockers, clutch assemblies, paper base friction plates, front fox, etc. Endurance Technologies Ltd. aids the top two-wheeler electric vehicle automobile companies such as Okinawa, Ather, Hero Electric, Bajaj Auto, and Bounce.
On March 16, 2016, the Ministry of Road Transport and Highways notified that all two-wheelers that have more than 125 cc should have an anti-lock braking system. Endurance has already started to manufacture ABS for such vehicles.
3. Tata Elxsi:
It mainly focuses on engineering research and development (ER&D). It develops software for electric vehicles. It deals in transportation, broadcasting, media, health care, etc. It even works on emerging technologies such as virtual reality, cloud computing, smart mobility, and artificial intelligence. Besides that, KPIT also focuses on developing software for electric vehicles.
4. Olectra Greentech Ltd.:
This company deals in the manufacturing of electrical buses. It may experience growth in electric vehicles as increasing demand for electric vehicles and ongoing advancements in electric vehicle technology, including improvements in motor efficiency, energy management systems, and autonomous driving features, contribute to the overall appeal and competitiveness of EVs. This company has a market cap of Rs 10,621,66 and achieves 14.65% growth in one year.
It gets 82% of its revenue from electric buses. In the last five years, the company has grown its sales by 46.5% while increasing its profit by 49.1%. Although it is a small company, it has more growth opportunities, and if you are an aggressive investor, you can go for it.
5. Tata Motors:
It is considered one of the oldest automobile manufacturing companies in India. A variety of cars, SUVs (Sport Utility Vehicles), buses, and trucks are included in the company’s segment. Its market cap is Rs. 2,47,327.15 crores, and its closed price is Rs. 681.70, with a growth of Rs. 61.89 in one year. Tata Motors has an 80% market share in electric vehicles. Tata had already sold 1 lakh EVs in India by August 2023.
6. Exide Industries Ltd.:
It is a prominent company in manufacturing batteries for vehicles. Its market cap is Rs. 23,965.75 crore, and its closed price is Rs. 285.60, which shows a growth of 56.49% in one year.
7. Motherson Sumi System Ltd.:
It is the biggest manufacturer of auto parts in India. Growing demand for electric vehicles engaged Motherson Sumi System Ltd. in manufacturing the parts of electric vehicles. It has seen a growth of 4.23% in one year.
8. Amara Raja Batteries Ltd.:
Amara Raja is the second-largest producer of batteries in India. This company plans to construct a colossal factory in which they will invest a huge amount over the next four to eight years.
To see how the ongoing research into advancements in lithium-ion batteries, especially in terms of energy density and cost reduction, has made electric vehicles more appealing to users, this company has planned to establish a technology hub that will focus on the advancement of lithium-ion cells.
9. TVS Motor Company Ltd.:
It is gaining popularity for electric vehicles. In the two-wheeler electric segment, TVS Motor’s share market rose from 2% in January 2022 to 20% in March 2023.
TVS Motor’s market cap is Rs. 75,579 crores, and in the last five years, the company’s sales growth has been 14.4% with a profit growth of 13.6%. In 2021, the sales of TVS vehicles were 19,421; in March 2023, they reached 31,974.
10. Tata Chemicals:
Besides making chemistry products, Tata Chemicals also manufactures lithium-ion batteries for electric vehicles. In the future, when the demand for EVs increases, the demand for batteries will surely go up, and with this, the company will earn a profit.
Characteristics of EV Stock in India
Considering electric vehicle stock can be a game changer in your life, but before investing, you should go through your own proper research and development to know in detail about the company. Here are the list of few features to consider when evaluating the best electric vehicle stocks in India:
1. Company’s Financials:
The company should have strong financial performance, including revenue growth, profitability, a healthy balance sheet, and positive cash flow, so that it may produce fruitful results in stock market.
2. Market Presence and Position:
The company should have a leading position, a well-established brand, and a positive reputation that will help in grabbing the advantage of the growing electric vehicle stock market in India.
3. Management Team:
The company should have a strong and experienced management team with a track record of success in the automobile industry. They should consider the stock’s price-to-earnings ratio and other relevant metrics. They should be able to diversify their competitive range in the electric vehicle stock market. They should have strategic partnerships with other companies in the EV ecosystem.
They should be able to earn positive earnings and a reasonable valuation based on financial ratios. They should monitor marketing sentiment, analyst recommendations, and news related to the electric vehicle’s stocks.
Conclusion
It is crucial to note that the stock market is dynamic and the value of stocks can fluctuate based on various factors, including market conditions, company performance, technological advancements, government policies, consumer demand, competition within the industry, and global economic trends. You should remember that sometimes investing in stocks can lead to risk. It is advisable to do your own research before making any investment in electric vehicle stocks. Additionally, you should stay informed about the latest developments in the electric vehicle industry, and regularly reviewing company reports and news can help you make informed investment decisions. Electric vehicles have more future opportunities, and you can convert this golden opportunity into an electric vehicle stock.