The shares of Olectra Greentech, an Indian EV major, traded at Rs. 226 a year ago has risen to provide 194.6% returns and currently trades at Rs. 663.95. The stock has turned out to be a gold mine for long term investors providing 851.1% returns over the last 5 years and increasing a whopping 23 times since 2002.
Despite suffering a slowdown in 2022, and falling – 20.26% the stock is back to its increasing trend. This is to short term investors’ delight as the stock has increased 16.23% this week alone.
Olectra Greentech is a company hard to ignore when it comes to India’s Electric Vehicle space. The company is currently India’s largest EV bus manufacturer. Its fleet of 300 electric buses in Pune is the largest in comparison to any other city in India and is expected to add 350 more buses to the city. It is also India’s only manufacturer of tarmac electric buses for airports.
According to the company’s recent developments, it is opening India’s largest electric bus factory in Hyderabad which is to have a capacity to produce 10,000 units. This will be set up with an investment of Rs. 600 crores and the facility will be spread over 150 acres. As the company comes into the EV space it is also eligible for several incentives and will also be eligible for the central government’s production linked incentive scheme. Olectra Greentech is also in plans to enter new segments like electric three-wheelers and trucks.
On the financial front, the company’s revenues have been continuously increasing since 2017 and stood at Rs. 271 crores in 2021. Its shares come with minimal debt at a debt-equity ratio of 0.01. As per data released in its latest December quarter, the number of FII and FPI holdings have increased from 24 to 52.
During the same quarter, the company sat on orders for 2000 buses worth Rs. 3000-3500 crores which were to be delivered in the coming 12-18 months. Earlier last month Olectra Greentech acquired a 26% stake in Evey Trans Pvt. Ltd. which will be operating in the business of owning, operating and leasing electric vehicles.
The shares of Olectra Greentech hit a 52 week high of Rs. 941.20 in December last year and currently trades at a 27% discount from this high.
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