The Indian government is encouraging the use of electric vehicles in the infrastructure, energy, and mobility sectors. According to Ernst & Young, India’s electric car industry received $6 billion in investments in 2021 and is expected to get $20 billion by 2030.
Due to its rapidly developing economy and population, India’s government expects to add an extra 300 million vehicles to its roadways by 2040, representing the largest increase in the worldwide automobile industry and an opportunity for the Electric Vehicle Industry.
Here are two stocks that are engaged in the manufacturing of Electric Vehicle Auto Component
Sterling Tools Ltd
Sterling Tools Ltd is engaged in the manufacturing and marketing of high tensile cold forged fasteners and leading sheet metal fabrication specialist. The company is also diversified into the manufacture of motor control units for electric two- and three-wheeler Original Equipment manufacturers (OEMs).
The company belongs to the small-cap category with a market capitalization of Rs 1,279 crores. On Friday, Company shares closed at Rs 355.25 a share, up 2.39 percent from the previous close price.
The operational income of Sterling Tools has risen by 27 percent year on year, from Rs 173 crore in Q1FY23 to Rs 220 crore in Q1FY24. During the same time period, the net has increased by 44 percent from Rs 9 crore to Rs 13 crore.
Sterling Tools, the second-largest automotive fasteners manufacturer and one of the largest motor control unit (MCU) suppliers for electric vehicles in India has announced its financial results for Q1 FY2024.
Sterling Tools is a pioneer in developing Automotive Microcontrollers (MCUs) in the 2W in a High-speed scooter segment (>~50 kmph) with a market share of around 50 percent market share.
The company shares have gained a return of 37 percent on a year-to-date basis and 50 percent in a year.
According to the latest shareholding pattern, the company promoters hold a 65.77 percent stake in the company and retail investors hold a 28.52 percent stake.
FIEM Industries Ltd.
FIEM Industries is one of the leading manufacturers of Automotive Lighting and signaling Equipment and rear-view mirrors in India.
The company belongs to the small-cap category with a market capitalization of Rs 2,283 crores. On Friday, Company shares closed at Rs 1,735.35 a share, up 2.11 percent from the previous close price.
The revenue of FIEM Industries has increased by 6.7 percent year on year, from Rs 444 crore in Q1FY23 to Rs 474 crore in Q1FY24. During the same time period, the net has increased by 20 percent from Rs 29 crore to Rs 35 crore.
In March of 2023. Fiem Industries has signed a Memorandum of Understanding(MOU) with Gogoro India (a subsidiary of Gogoro Taiwan) to enhance its product line in the 2-wheeler Electric Vehicles (EV) category.
FIEM Industries to manufacture Hub Motor Assembly, Electric Control Unit (ECU), and Motor Control Unit (MCU) for Gogoro under an MOU. Fiem Industries sees a huge commercial opportunity in the 2-Wheeler EV category and is trying to expand its product line to include this segment in addition to Automotive Lighting and Rear View Mirrors, among other things.
The company sells its products to top companies such as Honda, TVS, Yamaha, Suzuki, Eicher Royal Enfield, Harley Davidson, Mahindra, Tata Marcopolo, Force Motors, Honda Siel, Hyundai, Daimler, Mahindra Reva etc.
According to the latest shareholding pattern, the company promoters hold a 66.56 percent stake in the company and retail investors hold a 29.68 percent stake.
Written By Omkar Chitnis
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