The electric vehicle (EV) sector in India is rapidly evolving, driven by government incentives, environmental concerns, and technological advancements. With the increasing adoption of EVs, the industry is poised for significant growth, offering opportunities for sustainable transportation and economic development.
On Friday, the Union Government approved a scheme to promote the manufacturing of electric vehicles in India, which mandated a minimum investment of Rs 4,150 crore or around $500 million and allowing investors three years to set up local manufacturing for EVs with domestic value addition (DVA) of 25% by the third year and 50% by the fifth year.
The strategy is intended to encourage investments in the e-vehicle field from well-known worldwide EV manufacturers, according to a statement from the commerce and Industry Ministry.
The 15% customs charge (as applicable to CKD units) will be levied on cars having a minimum cost, insurance, and freight (CIF) value of $35,000 or above for five years, provided that the manufacturer establishes manufacturing facilities in India within three years.
The tariff foregone on the total number of EVs authorized for import will be restricted to the investment or Rs 6,484 crore (equivalent to the PLI plan incentive), whichever is lower.
As per the scheme, a maximum of 40,000 EVs at a pace of no more than 8,000 per year are permitted if the investment is $800 million or more. Carryover of unutilized yearly import restrictions would be authorized.
Here are the stocks that can get benefit from the EV scheme:
RattanIndia Enterprises Ltd
RattanIndia Enterprises Limited is RattanIndia Group’s main firm. RattanIndia Enterprises Limited is made up of technology-focused new-age firms such as e-commerce, electric cars, and drones.
With a market capitalization of Rs 9,776.79 crore, the shares closed at Rs 70.60 per share, decreased around 2.73 percent as compared to the previous closing price.
Looking into the company’s financial performance, revenue increased by 43 percent from Rs 1,153 crore in Q3FY23 to Rs 1,654 crore in Q3FY24. During the same period, net profit increased by 634 percent, from a loss of Rs 35 crore to a profit of Rs 187 crore.
Servotech Power Systems Ltd
Servotech Power Systems Limited manufactures, procures, and distributes sophisticated solar goods, medical gadgets, and energy-efficient lighting solutions. The company is working on a variety of initiatives, including the installation of solar panels for battery charging and photovoltaic (PV) ports.
With a market capitalization of Rs 1,776.45 crore, the shares closed at Rs 81.90 per share, increased around 1.49 percent as compared to the previous closing price.
Looking into the company’s financial performance, revenue decreased by 40 percent from Rs 82.49 crore in Q3FY23 to Rs 49.65 crore in Q3FY24. During the same period, net profit decreased by 69 percent, from Rs 3.59 crore to Rs 1.09 crore.
Wardwizard Innovations & Mobility Ltd
Wardwizard Innovations & Mobility Limited is an Indian automobile manufacturer. The company works in three segments: Joy E-Bike, Vyom Innovations, and Service Sales. The company manufactures bikes, scooters, mopeds, and engines.
With a market capitalization of Rs 1,644.72 crore, the shares closed at Rs 63.09 per share,
increased around 4.18 percent as compared to the previous closing price.
Looking into the company’s financial performance, revenue increased by 52 percent from Rs 69.83 crore in Q3FY23 to Rs 106.29 crore in Q3FY24. During the same period, net profit increased by 66 percent, from Rs 3.43 crore to Rs 5.70 crore.
HBL Power Systems Ltd
HBL Power Systems Limited specializes in the design, development, and manufacture of specialist batteries and electrical systems. In addition, the company provides product-related services. The company’s segments include industrial batteries, defense and aviation batteries, and electronics.
With a market capitalization of Rs 13,043.41 crore, the shares closed at Rs 474.35 per share, increased around 8.26 percent as compared to the previous closing price.
Looking into the company’s financial performance, revenue increased by 80 percent from Rs 332 crore in Q3FY23 to Rs 599 crore in Q3FY24. During the same period, net profit decreased by 229 percent, from Rs 24 crore to Rs 79 crore.
Written by:- Abhishek Singh
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