Shares of Olectra Greentech appreciated to the tune of 8.79% on Thursday’s intraday trades to reach an intraday high of ₹ 540.00 apiece. Its shares closed 5.36% higher at ₹ 522.95 apiece.
According to an exchange filing, the company’s electric tipper received India’s first homologation certificate from the Indian automobile regulatory agencies. The tipper is now roadworthy adhering to all the Central Motor Vehicle Rules.
“The first order for 20 e-tippers is in the final stage of discussions. We are shortly going to launch variants of the e-tipper and electric truck. It is just the beginning of our journey,” said Mr KV Pradeep, chairman and managing director of Olectra Greentech.
He added that the company is ringing in a significant change in the construction, infrastructure, mining and quarrying sectors because they are highly demanding due to the volume of material which is transported to work sites.
Prior to this agreement, Olectra Greentech also unveiled its hydrogen bus in technical partnership with Reliance Industries. Olectra Greentech’s shares have climbed 16.69% in the past five days.
Olectra Greentech, a subsidiary of Megha Engineering and Infrastructures Ltd is primarily engaged in the manufacturing of electric buses in India. In addition, it manufactures composite polymer insulators/ silicone rubber.
Olectra is a small-cap company with a market capitalisation of ₹ 4,074 crores. It has a return on equity of 4.66% and an ideal debt-to-equity ratio of 0.10. The company’s shares were trading at a price-to-earnings ratio of 72.32, which is higher than the industry average of 39.05, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
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