India is a major customer of the automotive industry, and the Indian government is encouraging automakers to produce electric vehicles in order to achieve long-term growth. However, just 1 percent of all automobiles manufactured in India each year are electric vehicles. The Indian government plans to increase this to 30 percent by 2030.
According to a study by the CEEW Centre for Energy Finance, the EV market in India will be a USD 206 billion opportunity by 2030. So several companies are shifting resources in order to expand and invest in the electric fleet business.
Here are two Auto ancillary stocks investing in the Electric Vehicle business
Sona BLW Precision Forgings Ltd.
Sona BLW Precision Forgings Ltd shares were trading at Rs 582 a share on Friday, down 1.10 percent from the previous close price of Rs 587.
Sona BLW Precision Forgings currently holds a 15-20 percent market share in the electric two-wheeler segment. By FY25, the Company planned to invest up to Rs 1,000 crore to scale up the Electric vehicle business segment.
Electric automobiles presently account for around 25 percent of the company’s revenue from the main regions of Europe, North America, China, and India. However, the company aims to double the share of its global electric vehicle business to 45 percent to 50 percent of revenue by 2025.
Sona BLW Precision Forgings Ltd’s revenue has increased by 25 percent yearly, from Rs 538 crore in Q1FY23 to Rs 673 crore in Q1FY24. During the same period, net profit increased by 55 percent, from Rs 65 crore to Rs 101 crore.
Sona BLW Precision Forgings is engaged in designing, manufacturing, and supplying engineered automotive systems and components.
Kabra Extrusion Technik Ltd
Kabra Extrusion Technik Ltd shares were trading at Rs 436.10 a share on Friday, up 0.94 percent from the previous close price of Rs 435.80.
The company board has approved a raise of up to INR 301 crore for the expansion of its future technologies brand Battrixx, which produces green energy systems and lithium-ion battery packs for Electric vehicles.
Kabra Extrusion Technik recently partnered with Hero Electric to develop Lithium-ion batteries. In addition to this, the Company planned to build a new manufacturing plant in North India to produce new-age Lithium-ion battery packs and other auxiliary items via its wholly-owned subsidiary, with a capacity of 0.75 GWh per year.
Kabra Extrusion Technik Ltd’s revenue has increased by 26 percent yearly, from Rs 105 crore in Q1FY23 to Rs 133 crore in Q1FY24. During the same period, net profit increased by 39 percent, from Rs 4.15 crore to Rs 5.78 crore.
Kabra Extrusiontechnik Ltd is one of India’s premier manufacturers & exporters of extrusion plants and the company offers a wide range of hi-tech single and twin screw extrusion lines for pipes, profiles, pellets, and mono & multilayer blown film plants.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
