“The Indian automotive market is poised for rapid Electric Vehicle (EV) growth, due to the convergence of factors including government incentives, improving cost-competitiveness and original equipment manufacturer (OEM) investment, along with increased customer readiness and awareness,” according to a report by Bain & Company. The revenue pool of the industry is expected to reach a size of $76-100 billion by 2030, the report added.
Here are two Electric Vehicle (EV) stocks that are accelerating their growth and analysts see an upside of up to 20 per cent:
Tata Motors Limited
The shares of Tata Motors moved marginally till Friday afternoon and were trading at Rs 415 levels. The stock has been on a downtrend and has shed approximately 15 per cent this year. The stock reached its 52-week high of Rs 528.50 in January this year. Currently, it is trading at a discount of 20 per cent from those levels.
The Electric Vehicle (EV) Major has entered into a contract with Everest Fleet Pvt Ltd to supply 5,000 units of XPRES-T EVs. The brand ‘XPRES’ was launched in July 2021 to exclusively cater to their fleet customers.
Tata Motors Limited, part of Tata group, is engaged in the manufacturing of products passenger cars, trucks, vans, coaches, and buses. According to a BNP Paribas report, Tata Motors is a market leader in the electric passenger vehicle segment with a 76 per cent volume market share.
In Q2FY23, the company reported a total revenue of Rs 79,611.37 Crore which was an increase of 30 percent Year on Year from Rs 61,378.82 Crore. Their net losses narrowed to Rs 1,004.07 Crore from Rs -4,476.61 Crore in Q2FY22.
Global brokerage firm Morgan Stanley has maintained an ‘overweight’ rating on Tata Motors and raised the target to Rs 502 per share representing an upside of 21% from current levels.
Mahindra & Mahindra Limited
The shares of Mahindra & Mahindra declined by 2 percent and were trading at Rs 1,290 levels till Friday afternoon. In the past six months, the stock has added 26 percent and so far this year it has gained 56 percent YTD.
The company plans to invest Rs 10,000 crore over the next 7 to 8 years for setting up the manufacturing facility, development, and production of Mahindra’s upcoming Born Electric Vehicles (BEVs).
Mahindra & Mahindra Limited (M&M), Part of the Mahindra Group, is an
Indian multinational automotive manufacturing corporation. It is the largest manufacturer of tractors in the world by volume. BNP Paribas report highlighted that the company is the market leader in the electric three-wheeler segment with a 7.9 percent market share.
In the latest quarter, the company earned a total revenue of Rs 29,870.38 Crore which is a jump of 39 percent from Rs 21,469.8 Year on Year. Their net profit also jumped by Rs 2,585.85 Crore up from Rs 2,031.54 Crore in Q2FY22.
Brokerage firm Sharekhan is bullish on M&M and has a ‘Buy’ tag on the shares of the company with a target price of Rs 1,550 per share which represents an upside of 23% from the current levels.
Written by Anoushka Roy
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