EV Battery Charging Infrastructure Stocks: We have been hearing a lot about the companies and the government gearing up to transition from traditional IC engines to electric vehicles. Can 2022 be the year for EV?
And more importantly, Is the country’s infrastructure ready to bring more EVs on the road? In this article, we will have a look at the EV industry in India and also the top EV Battery Charging Infrastructure Stocks.
Keep reading to find out!
Table of Contents
Industry Overview
The Electric Vehicle (EV) industry is at a growing stage in India. In the present scenario, nearly 1-2% of the market in India is captured by EVs.
In 2019, India set aside 100 billion rupees ($1.3 billion) to promote EVs by giving incentives directly to buyers, but only about 10% of this has been used.
To boost the sector, the government is rolling out new schemes and initiatives. One such initiative at present is the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme.
The scheme allows an incentive of Rs 15,000 per kWh. In addition to that, it had also capped incentives for e2W at 40 percent of the cost of vehicles.
As per a joint report by Indospace and Colliers, nearly Rs 94,000 crores will be invested in the Indian EV sector in the next five years.
The New Battery Swap Scheme
The Battery is the most expensive part of an Electric Vehicle. One of the reasons for the such high cost is the requirement of multiple raw materials such as nickel, copper, cobalt, and manganese.
Any upside in the cost of these will affect the price of the batteries which will ultimately be borne by the customers.
In the Budget speech of 2022, the Finance Minister announced a new policy on ‘battery swapping’ with interoperability standards, details of which will be finalized soon.
This move will allow the replacement of out-of-charge batteries with charged ones from a charging station or outlet. This will be faster than waiting to charge the battery block.
The policy will initially focus on battery swap services for electric scooters, motorcycles, and three-wheeled auto-rickshaws and then move on to other vehicles.
Adding to the good news, the customers will be incentivized with up to 20% of the total subscription or lease cost.
Under this policy, the government is likely to offer EV owners an incentive of up to 20% of the total subscription or lease cost of the battery.
This is good news as it will help in bringing down the cost of owning and operating an EV.
As per the data from Mordor Intelligence, the Indian EV market is estimated to reach $15.4 trillion by 2027, growing at a compound annual growth rate (CAGR) of 47.09% during 2022-2027.
Top Stocks In The EV Battery Charging Infrastructure
The top five stocks in the EV Battery Charging Infrastructure are:
EV Battery Charging Infrastructure Stocks #1 – Tata Power Company Ltd.
| Face Value (₹): | 1 | ROE (%): | 8.42 |
| Market Cap (Cr): | 73,800 | Net Profit Margin: | 5.27 |
| EPS (TTM) (₹): | 5.45 | Debt to Equity: | 2.28 |
| Stock P/E: | 40.5 | Current Ratio | 0.84 |
| Dividend Yield (%): | 0.75 | Promoter’s Holdings (%): | 46.86 |
A part of the Tata group, It is one of India’s largest integrated power companies. It offers EV charging solutions across all segments.
As of May 2022, Tata power has around 13,107 home charging points, 212 e-bus charging stations, and 2,000+ EV charging stations installed in India.
To boost its EV charging infrastructure, Tata has partnered with various EV makers such as Tata Motors, TVS, MG Motor India, and Jaguar Land Rover (JLR) India to develop charging infrastructure.
It tied up with Lodha Group and Central Railway Mumbai to provide EV charging solutions in Pune and Mumbai.
Recently, it announced its partnership with Apollo Tyres to deploy EV charging stations across their commercial & passenger vehicle zones. It has raised funds from BlackRock and Mubadala for its renewable energy business.
The largest player in the EV segment reported a net profit of Rs 1,741 Cr and total revenue of Rs 42,816 Cr in FY21.
The red flag about the company can be high debt along with rising interest payments. The promoters of the company are focused on unpledging their shares as it now stands at 1.4% from 2.59%.
EV Battery Charging Infrastructure Stocks #2 – Indian Oil Corporation
| Face Value (₹): | 10 | ROE (%): | 20.5 |
| Market Cap (Cr): | 1,02,000 | Net Profit Margin: | 4.37 |
| EPS (₹): | 17.8 | Debt to Equity: | 0.99 |
| Stock P/E: | 4.07 | Current Ratio | 0.76 |
| Dividend Yield (%): | 11.6 | Promoter’s Holdings (%): | 51.5 |
Indian Oil Corporation is the largest oil refining & petroleum marketing company in India.
IOC currently has 257 EV charging stations and 29 battery swapping stations across the country and plans to install EV charging facilities at 10,000 fuel stations in the next three years.
It has collaborated with companies uch as Hyundai, Mahindra, Ola, and NTPC to set up EV chargers at fuel stations.
Further, it has set up the first hybrid microgrid to charge EVs using solar power, battery storage, and grid power as a part of its ‘zero-emission electric mobility mission’.
The government corporation reported a net profit of Rs 25,012 Cr in FY21 with its total revenue at Rs 5,89,336 Cr.
The promoter’s pledge for the company is zero with high promoters holding. However, the balance sheet of the company has high debt.
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EV Battery Charging Infrastructure Stocks #3 – Bharat Petroleum Corporation
| Face Value (₹): | 10 | ROE (%): | 20.6 |
| Market Cap (Cr): | 69,200 | Net Profit Margin: | 3.13 |
| EPS (TTM) (₹): | 53.8 | Debt to Equity: | 1.24 |
| Stock P/E (TTM): | 6.39 | Current Ratio | 0.75 |
| Dividend Yield (%): | 3.13 | Promoter’s Holdings (%): | 52.98 |
Bharat Petroleum Corporation is the second-largest oil marketing company and third-largest refining company with a network of 19,000 outlets.
At present, the company runs 44 EV charging stations and plans to add another 1,000 outlets by the end of this year.
The company is coming up with strategies to transform more than 7,000 conventional outlets into energy stations in the next few years.
It also plans to invest ₹50 bn in the next five years to expand its renewable power portfolio to 1,000 megawatts (MW).
The dividend-paying company posted a net profit of Rs 11,682 Cr and total revenue of Rs 3,46,791 Cr in FY22.
Apart from that, the company has been able to improve its cash flow and has zero promoters pledge.
EV Battery Charging Infrastructure Stocks #4 – Reliance Industries Ltd.
| Face Value (₹): | 10 | ROE (%): | 8.15 |
| Market Cap (Cr): | 16,96,700 | Net Profit Margin: | 9.37 |
| EPS (TTM) (₹): | 89.7 | Debt to Equity: | 0.36 |
| Stock P/E: | 28.9 | Current Ratio | 1.12 |
| Dividend Yield (%): | 0.28 | Promoter’s Holdings (%): | 50.61 |
It is the second-largest refinery in the country. It operates a network of 1,400 petrol pumps in the country and plans to expand this to 5,500 pumps in the next five years with multiple fueling options, including EV charging.
For this purpose, Reliance has forged a partnership with British Petroleum and will operate under the name Jio-BP.
It will first target the Delhi-NCR region and set up EV charging stations. For acquiring technology, it has partnered with BluSmart, an EV ride-hailing platform.
The Oil-to-Chemicals conglomerate posted a net profit of Rs 60,705 Cr and earned a total revenue of Rs 6,99,962 Cr.
The company has low debt and zero promoters pledge. However, the company has not been able to generate cash.
EV Battery Charging Infrastructure Stocks #5 – ABB India
| Face Value (₹): | 2 | ROE (%): | 11.3 |
| Market Cap (Cr): | 57,658 | Net Profit Margin: | 6.24 |
| EPS(₹): | 35.5 | Debt to Equity: | 0.01 |
| Stock P/E: | 116 | Current Ratio | 1.66 |
| Dividend Yield (%): | 0.19 | Promoter’s Holdings (%): | 75 |
ABB India is one of the largest integrated power equipment manufacturers. Out of its many businesses, their electrification segment provides products, charging solutions, and services in the power industry.
It successfully launched the fastest EV charger globally, Terra 360. This product has the capability to deliver a range of 100 km with 3 minutes of charging. The company is in the process of launching it globally.
The international company posted a net profit of Rs 520 and a revenue of Rs 6,934 Cr in December for the year ending 2021.
ABB India has been able to generate positive cashflow. Along with that, the company has no debt and zero promoters pledge.
In Closing
As per a Grant Thornton Bharat-FICCI report released in June last year, India will need 4 lakh charging stations to meet the estimated requirement of 20 lakh EVs plying on the roads by 2026.
Presently, the country has a little over 1,800 charging stations only. This opens up a lot of opportunities not only for the companies but also for investors as the segment has the potential to grow.
That’s all for this article on EV EV Battery Charging Infrastructure Stocks. Have you invested in any of these companies? Let us know in the comments below!
IIT Madras incubated EV startup Esmito is one such startup that has raised pre-seed investment from pi Ventures and IIT alumni. EVs are seen as a viable option to reduce air pollution and dependence on imported oil.
India has been working towards electric mobility to have all new vehicle sales be electric by mid-to-late 2030 in India. As of now, Esmito is one of the few EV startups that have successfully raised funds through an investor and attracted investors’ attention.
This success can be attributed to the company’s location at IIT Madras which enabled them to attract investors and also to their innovative idea for developing electric vehicles for the Indian market. So it is quite hard to predict the EV stocks of this infant brand.
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