Best EV Stocks With High FII Holdings To Add To Your Watchlist

Best EV Stocks With High FII Holdings: The transportation industry is undergoing a significant transformation as the world moves towards more sustainable and eco-friendly options. Due to this, electric vehicles (EVs) have emerged as the front runners in this shift. This has opened up new investment opportunities, attracting more foreign investors to India’s markets.  In this article, we going to look at the 5 Best EV Stocks With High FII Holdings.

Electric Vehicles Sector Categories 

Before we get into the Best EV Stocks With High FII Holdings, it’s important to know that the electric vehicle company is not only limited to the manufacturers. The sector is divided into four subdomains:

• Auto manufacturers: This comprises the companies that manufacture electric vehicles.  
• Auto parts and EV software: This comprises companies that manufacture spare parts and software required for electric vehicles.  
• Battery manufacturing: This comprises companies that manufacture batteries for electric vehicles. 
• EV charging stations: This comprises companies that set up charging stations to charge electric vehicles.

Best EV Stocks With High FII Holdings

For our study of ‘Best EV Stocks With High FII Holdings’, we will look at a few companies from the various sectors directly or indirectly related to the manufacture of EVs.

Best EV Stocks With High FII Holdings #1 – Mahindra & Mahindra

Mahindra & Mahindra Ltd. is the flagship Company of the Mahindra Group engaged in the business is mobility products and farm solutions. 

Since producing its first vehicle in 1947, the company has expanded its offerings to include SUVs, pickups, commercial vehicles, tractors, electric vehicles, two-wheelers, gen-sets, and construction equipment.

It commenced its exports in the 1960s, and today, the company vehicles and tractors can be found in all six habitable continents of the world.

The company placed plans to launch an EV sub-segment in FY2024 and match the strategic targets of EVs and maintain a balance M&M does not plan on capacity for ICE’s above 49,000 units.

After a dip in sales during Covid, the company has reported increasing sales in the following two financial years. During FY23, it reported a net revenue of ₹1,21,268.55 crores and a net profit of ₹ 10,281.5 crores. 

Due to its high debts, the company has a debt-to-equity ratio of 1.58. Through its ROE of 22.09% we can understand that it has given goods to the shareholder’s capital. At the same time, a RoCE of 14.9% suggests that the company resources aren’t utilized optimally.

As per Q1FY24, the stake held by the promoters and the FII was 19.37% and 40.14% respectively.

Best EV Stocks With High FII Holdings #2 – Amara Raja Energy & Mobility

Amara Raja Energy & Mobility Limited is a flagship company of the Amara Raja Group. It is a technology leader and one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.

The company is a prestigious original equipment manufacturer for leading companies, a few of which include Maruti Suzuki India Limited, Hyundai Motors India Limited, Ford India Limited, Tata Motors Limited, Mahindra and Mahindra Limited, and Honda Cars India Limited. 

Furthermore, it is also the preferred supplier to major telecom service providers, telecom equipment manufacturers, the UPS sector (OEM & Replacement), Indian Railways, and the power, oil, and gas industries, among others, in India.

The company produces Li-ion cells, battery packs, and charging solutions for LEVs and the telecom industry. It is one of the first businesses in India to invest in Li-ion technologies, with a state-of-the-art Gigafactory under construction.

During FY23, the company generated a net revenue of ₹ 10,388.2 crores from which it has retained a net profit of ₹694.53 crores. The return ratios of the company were moderate with the ROE and ROCE standing at 14.1% and 19.6%. Furthermore, the company has become debt-free as of FY23

Talking about its shareholding pattern, the promoters have consistently held a 28.06% stake in the company over the past few quarters. As of Q1FY24, the FII’s held a 35.22% stake in the company.

Best EV Stocks With High FII Holdings #3 – Sona BLW Precision Forgings

Sona BLW Precision Forgings, incorporated in 1995, is one of the major automobile component producers in India. Over the years, the company has developed organically and inorganically to become a global producer. 

In 2019, the company acquired Comstar Automotive Technologies Private Ltd, and since then, it adopted the brand name “Sona Comstar”.

The company produces a range of automotive components including differential assemblies, differential gears, starter motors for conventional and micro-hybrid engines, belt starter generator (BSG) systems, electric vehicle (EV) traction motors – such as brushless direct current (BLDC) and permanent magnet synchronous motors (PMSM) – and motor control units.

Its products are used in a variety of vehicle categories, including electric vehicles, traditional passenger vehicles, commercial vehicles, off-highway vehicles, electric cars, electric light commercial vehicles, and electric two and three-wheelers. 

During FY23, the company generated a net profit of  ₹ 395.3 crores on net revenue of ₹2,675.6 crores. 

Coming to the return ratios of the company, an ROE of 18.47% and a RoCE of 22.98% suggest a high efficiency in the utilization of company resources. Furthermore, the company has a negligible debt with a debt-to-equity ratio of 0.1.

As of Q1FY24, the stakes held by the promoters and the FIIs in the company were 29.76% and 31.68% respectively.

Best EV Stocks With High FII Holdings #4 – Eicher Motors

Eicher Motors Limited (“EML”), headquartered in Gurugram, India, was founded in 1948. It manufactures and distributes motorcycles and commercial vehicles in India and overseas. 

It specializes in leisure riding and is involved in R&D, prototyping, manufacturing, distributing, assembling, and selling two-wheelers and their accessories and gear.

Furthermore, through its joint venture (“JV”), Volvo Eicher Commercial Vehicles Limited (“VECV”), it also manufactures and sells light and heavy-duty trucks, medium-duty trucks, and buses under the Eicher brand; Volvo trucks; and engineering components and aggregates.

They have a huge presence across the world with more than 950 retail touchpoints across more than 60 countries.

During FY23, the company delivered its first batch of 40 electric buses and has plans to increase the focus in this segment. Additionally, they have also formed a team of 100 members who are focused on building not just a distinct Royal Enfield electric motorcycle, but also a comprehensive electric vehicle business

The company has consistently increased its revenues in the past three years. During FY23, the company generated a net revenue of ₹14,442.18 crores and a net profit of ₹2,913.94 crores. 

An ROE of 21.19% and a RoCE of 27.48% indicate high efficiency in the way the company is utilizing its resources. Furthermore, the company reported a debt-to-equity ratio of 0.01 signifies a negligible debt in the company.

As of Q1FY24, the stakes held by the promoters and the FIIs in the company were 49.17% and 30.28% respectively.

Best EV Stocks With High FII Holdings #5 – Hero MotoCorp

Hero MotoCorp Limited, headquartered in New Delhi, is an Indian multinational motorcycle and scooter manufacturer. In terms of unit volume sales in a calendar year, it is the largest maker of motorcycles and scooters in the world.

Hero MotoCorp offers a wide range of products, including motorcycles and scooters with a range of engine capacities. The Splendor, HF Deluxe, Passion, and Pleasure are the most popular products of the company. it also also manufactures a line of high-end bikes, including the Hero Xpulse 200, Hero Xtreme 200R, and Hero Xoom 160R.

Additionally, with the debut of the Vida V1 electric scooter in India, Hero has joined the Electric Vehicle (EV) segment. In addition, Hero has formed a partnership with Zero Motorcycles to co-develop premium electric motorcycles, utilizing their expertise to build unique and high-performance EVs.

While domestic activities generate the great majority of Hero MotoCorp’s revenue, the company also has operations throughout Latin America, South Asia, Africa, and the Middle East.

During FY23, the company generated a net revenue of ₹34,158.3 crores from which it has retained a net profit of ₹2,799.9 crores. 

Coming to the return ratios of the company, an ROE of 17.26 % and a RoCE of 23.93 % suggest a high efficiency in the utilization of company resources. Furthermore, the company has a negligible debt with a debt-to-equity ratio of 0.02.

Talking about its shareholding pattern, the promoters have consistently held a 34.77% stake in the company over the past few quarters. As of Q1FY23, the FII’s held a 28.09% stake in the company.

List of EV Stocks With High FII Holdings

The table below puts together the names of EV Stocks With High FII Holdings covered above along with some more.

Conclusion

As we conclude our study of ‘Best EV Stocks With High FII Holdings’, one should note that if you are looking to invest in EV Companies in India, you should keep a close watch on all EV companies besides the five mentioned above.

It should also be noted that these stocks were chosen mostly based on FII ownership. As a result, it is advised that investors base their investing decisions on their own analysis and judgment.

Written By Aaron Vas

By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.