On November 19, the Ministry of Heavy Industries restored subsidies for electric three-wheelers under the PM E-Drive scheme after the annual allocation for FY25 was exhausted. The government sanctioned additional funds to incentivize around 3,20,000 electric three-wheelers while keeping the focus on those with advanced battery technology for commercial use. On account of this development, some stocks might benefit from this initiative.
Listed below are some of the Stocks to benefit from the government restoring subsidy for electric three-wheelers till FY26
Atul Auto
Atul Auto Limited, established in 1992 and based in Gujarat, specializes in manufacturing three-wheelers, primarily targeting the domestic rural market. The company offers a diverse portfolio of over 45 models under brands like Shakti and Smart, catering to both passenger and cargo segments.
With a market capitalization of Rs. 1,548.52 Crores, the shares of Atul Auto Limited were trading at Rs. 558 per equity share, up 4.97 percent from its previous day’s close price of Rs. 531.60.
As of October 2024, Atul Auto had sold around 646 units which is higher than 503 units of September 2024.
Its Revenue from operations grew by 18.5 percent from Rs. 153.17 Crores in Q2FY24 to Rs. 181.65 Crores in Q2FY25, accompanied by profits of Rs. 7.13 Crores to Rs. 4.57 Crores.
Bajaj Auto
Bajaj Auto Limited is a leading Indian automotive manufacturer, primarily focused on motorcycles, scooters, and three-wheelers. The company was established in 1945, it has become the world’s third-largest motorcycle manufacturer and the largest three-wheeler producer. The company operates on a business model centered around innovation, extensive R&D, and a robust export strategy, with significant revenues generated from international markets.
With a market capitalization of Rs. 2,70,216 Crores, the shares of Bajaj Auto Limited were trading at Rs. 9,676 per equity share, up 1.69 percent from its previous day’s close price of Rs. 9,515.25.
As of October 2024, the Bajaj Auto had sold around 6,299 units which is higher than 5,000 units of September 2024.
Its Revenue from operations grew by 22 percent from Rs. 10,838 Crores in Q2FY24 to Rs. 13,247 Crores in Q2FY25, accompanied by profits of Rs. 2,020 Crores to Rs. 1,385 Crores.
Tube Investments of India
Tube Investments of India Limited is an Indian engineering and manufacturing company, specializing in a range of products for industries such as automotive, railway, and construction. Their business model focuses on three verticals namely Engineering, Bicycles, and Metal Formed Products. The company focuses on innovation and expansion into new sectors, including TMT bars and truck body building.
With a market capitalization of Rs. 68,485 Crores, the shares of Tube Investments of India Limited were trading at Rs. 3,540 per equity share, up 3.07 percent from its previous day’s close price of Rs. 3,435.35.
As of October 2024, the Tube Investments of India under the brand name Montra Electric (TI Green Mobility) had sold around 632 units which is higher than 599 units of September 2024.
Its Revenue from operations grew by 14.37 percent from Rs. 4,306 Crores in Q2FY24 to Rs. 4,925 Crores in Q2FY25, accompanied by a profit of Rs. 346 Crores to Rs. 299 Crores.
Written by: Santhosh S
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