The future of transportation is electric, and the backbone of the revolution lies in the ever-expanding network of EV charging stations. These stations provide the necessary infrastructure for charging, making electric driving a seamless and convenient reality. As more consumers adopt electric vehicles, the demand for accessible charging points also grows.
Investing in EV charging infrastructure isn’t just smart. It’s essential for promoting less pollution, more savings, and unlocking a sustainable future. Ultimately, investing in EV charging infrastructure represents a promising future, making it an attractive opportunity for investors and stockholders. In the article, we are suggesting the best EV charging infrastructure stocks in the Indian market.
Table of Contents
Industry Overview
India’s automotive sector is currently one of the largest in the world. It is valued at over $100 billion and contributes 7.1% to the nation’s GDP and 8% to exports. India is the third-largest seller of two-wheelers, passenger cars, and commercial vehicles in the world. By 2027, the Indian passenger automobile industry is projected to grow from $33 billion to $55 billion. The electric vehicle (EV) market in India is expected to reach $8 billion by 2025.
India’s electric vehicle industry is growing rapidly with significant government initiatives and a strong shift towards sustainable transportation. The government aims for 30% of new vehicle sales to be electric vehicles by 2030. It aims to boost sustainable transport, creating millions of jobs and significant investments in the sector.
India’s EV sales are projected to be 27.2 million units in FY32, which is growing at a CAGR of 35% during the periods of 2023-32. This transition sets India as a potential leader in the global EV market.
Electric Vehicle Charging Infrastructure in India
Electric vehicle charging infrastructure is crucial for EV adoption in India. The Indian government has prioritized building a robust EV charging network, with plans to install charging stations every 25 km on major highways and every 3 km in cities. By 2027, the government planning to expand the number of EV charging stations to 1,00,000.
The future of India’s EV charging infrastructure looks promising, with private players investing heavily in setting up charging stations across the country. Innovative solutions like battery swapping stations and wireless charging are also being explored to make EV charging more convenient and accessible. India’s rapid shift to electric vehicles would require the establishment of a wide-ranging charging infrastructure. This will help to maintain the EV market’s growth and fulfill the government’s ambitious environmental goals.
Best EV Charging Infrastructure Stock in India
Exicom Tele-Systems
Exicom Tele-Systems was established in 1994 and is headquartered in Gurgaon. The company mainly provides two business verticals, which include EV charging solutions and critical power businesses. Exicom Tele-Systems is the first entrant in the EV charger manufacturing segment in India. Exicom Tele-Systems launched into the electric vehicle charger business in 2019. It has operated in over 15 counties. The company had a manufacturing EV charger domestic market share of 60% and a public charging station market share of 25%, respectively.
Exicom Tele-Systems Limited is currently operating across all vertical markets of EV charging, including AC chargers (3.3kW to 22kW) for residential use, fleet charging, and heavy-duty vehicle charging for buses and trucks (DC fast chargers). The company has established over 61,000 EV charging stations across 400 locations in India. Exicom has reported a growth of 11% in its EV charger business, increasing from ₹219 crore to ₹243 crore.
The company’s customers include automotive OEMs, charge point operators, and fleet aggregators, such as JioBP, Fortum Charge & Drive India, BluSmart Mobility, and Mahindra & Mahindra. Exicom Mobility division provides Li-ion battery and charging infrastructure solutions for EV applications including 2-wheelers, 3-wheelers, passenger cars, and commercial transport.
Key Financial Metrics of Exicom Tele-Systems
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹423.85 | Market Cap (Cr.) | ₹4,964 |
| EPS (TTM) | ₹6.86 | Stock P/E (TTM) | 59.89 |
| ROE (TTM) | 10.50% | ROCE (TTM) | 16.99% |
| ROA (TTM) | 8.99% | P/B Ratio | 8.1 |
| Debt to Equity | 0.07 | Current Ratio | 3.34 |
| Promoter Holding (%) | 69.57% | FII Holding (%) | 1.00% |
| Operating Profit Margin | 13.33% | Net Profit Margin | 7.66% |
Tata Power Company
Tata Power Company was established on September 18, 1919, and founded by Dorabji Tata. The company is one of India’s largest integrated power and renewable energy players. The company also leads the clean energy space through solar rooftops and EV charging solutions.
In 2023, Tata Power announced a partnership with the Indian Oil Corporation to establish over 500 electric vehicle (EV) charging points across India, aiming to enhance the country’s EV infrastructure and facilitate intercity travel for EV users. Tata Power Company Limited operates charger points in 553 cities across India.
Tata Power is a key player in India’s EV charging ecosystem, with a current capacity of more than 5,569 public & captive EV charging points and nearly more than 1092 E-bus high-capacity fast charging points. Additionally, the company also has more than 99,131 home chargers. For future expansions, the company will likely scale up public and bus charging networks, reinforcing its presence in the rapidly growing EV sector.
Key Financial Metrics of Tata Power Company
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹417.75 | Market Cap (Cr.) | ₹133,565 |
| EPS (TTM) | ₹11.48 | Stock P/E (TTM) | 36.41 |
| ROE (TTM) | 11.42% | ROCE (TTM) | 10.41% |
| ROA (TTM) | 3.10% | P/B Ratio | 4.19 |
| Debt to Equity | 1.66 | Current Ratio | 0.95 |
| Promoter Holding (%) | 46.86% | FII Holding (%) | 9.51% |
| Operating Profit Margin | 8.72% | Net Profit Margin | 7.10% |
ABB India
ABB India is operating as a subsidiary of ABB Group, and a global leader in integrated power equipment manufacturing. It is currently functioning across four business divisions: electrification, robotics and discrete automation, motion, and process automation. The company is focused on providing innovative solutions in the power industry.
ABB India is actively developing EV charging infrastructure solutions and digital solutions for energy management. It is deploying high-quality AC and DC chargers across the country. The company has installed more than 14000 DC fast chargers across 80 countries. The company is also preparing to introduce Terra 360, the world’s fastest EV charger, in India. It will deliver a range of 100 Km with 3 minutes of charging vehicles.
Furthermore, ABB is collaborating with local partners to expand its charging network. Since 2010, it has been consistently investing in transportation electrification. As a result, ABB is now becoming the preferred partner for major EV manufacturers and charging network operators. The company is continuously striving to revolutionize the EV charging landscape in India.
Key Financial Metrics of ABB India
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹7,972.10 | Market Cap (Cr.) | ₹168,174 |
| EPS (TTM) | ₹69.02 | Stock P/E (TTM) | 114.98 |
| ROE (TTM) | 25.30% | ROCE (TTM) | 33.78% |
| ROA (TTM) | 13.71% | P/B Ratio | 28.42 |
| Debt to Equity | 0.01 | Current Ratio | 1.93 |
| Promoter Holding (%) | 75.00% | FII Holding (%) | 12.06% |
| Operating Profit Margin | 16.00% | Net Profit Margin | 11.88% |
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Indian Oil Corporation (IOC)
Indian Oil Corporation Was established on June 30, 1959. IOC is standing as India’s largest oil refining and petroleum marketing company. It is currently operating a vast network of fuel stations across the country. The company is playing a crucial role in India’s energy sector. It is also focusing on diversifying its portfolio to meet evolving market demands.
IOC is actively transitioning towards sustainable energy solutions. It is planning to install EV charging facilities at 10,000 fuel stations. Now the company has 9059 EV charging stations, which include 3601 EV charging stations of FY24 and 91 battery swapping stations.
The company is collaborating with EV makers and power companies to expand its charging network. Moreover, it is exploring innovative technologies like hybrid microgrids and solid oxide fuel cells. IOC is also venturing into green hydrogen production and solar energy. The company is aiming to achieve net-zero emissions by 2046. It is investing in research and development to stay competitive in the changing energy landscape.
Key Financial Metrics of Indian Oil Corporation
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹169.09 | Market Cap (Cr.) | ₹240,343 |
| EPS (TTM) | ₹21.83 | Stock P/E (TTM) | 7.8 |
| ROE (TTM) | 22.75% | ROCE (TTM) | 20.33% |
| ROA (TTM) | 6.66% | P/B Ratio | 1.3 |
| Debt to Equity | 0.72 | Current Ratio | 1.15 |
| Promoter Holding (%) | 51.50% | FII Holding (%) | 7.79% |
| Operating Profit Margin | 8.18% | Net Profit Margin | 5.36% |
Servotech Power Systems
Servotech Power Systems was established in 2004. The company is emerging as a key player in India’s renewable energy and electric vehicle sectors. It is currently focusing on manufacturing solar products, LED lighting, and EV charging solutions. The company is striving to provide innovative and sustainable energy solutions. It is also expanding its presence in the rapidly growing EV market.
Servotech Power Systems Limited has a significant presence in the EV charging sector. The company has installed over 5,800 EV chargers across India. The company has secured orders for EV chargers from more than 90% of oil marketing companies, reflecting its robust market position. Currently, Servotech aims to manufacture 12,000 DC fast chargers in the fiscal year 2025. The company has an existing order book of approximately 8,500 units, indicating strong demand and operational capacity.
Key Financial Metrics of Servotech Power Systems
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹133.62 | Market Cap (Cr.) | ₹2,974 |
| EPS (TTM) | ₹0.54 | Stock P/E (TTM) | 247.06 |
| ROE (TTM) | 8.81% | ROCE (TTM) | 8.80% |
| ROA (TTM) | 4.37% | P/B Ratio | 20.79 |
| Debt to Equity | 0.63 | Current Ratio | 4.74 |
| Promoter Holding (%) | 59.70% | FII Holding (%) | 5.53% |
| Operating Profit Margin | 5.46% | Net Profit Margin | 3.33% |
Conclusion
In conclusion, The electric vehicle (EV) charging infrastructure market in India is experiencing rapid expansion, driven by significant investments from key players such as Exicom, Tata Power, ABB India, IOC, and Servotech. These companies are not only establishing a robust network of charging stations but are also innovating in technology to enhance the charging experience.
Moreover, the government is actively supporting this transition through ambitious targets and policies, which will further bolster the industry’s growth. The outlook for the EV charging infrastructure market appears promising. With ongoing investments and supportive policies, the sector is contributing to a cleaner and more sustainable transportation ecosystem. What to do
In your opinion, how might the growth of EV charging infrastructure impact traditional fuel stations? What do you think about the above companies, such as Exicom, Tata Power, ABB India, IOC, and Servotech? Let us know in the comments below.
Written By NIkhil Naik
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