The Indian electric vehicle (EV) sector is rapidly expanding, fueled by government initiatives, growing environmental awareness, and an increasing demand for eco-friendly transportation options. As the industry evolves, many EV stocks show promising potential for investors.
One crucial metric to assess when considering these stocks is the debt-to-equity ratio. A ratio below 1 suggests that a company is not heavily dependent on debt for financing, signaling financial stability and lower risk, which can make these companies attractive investments, particularly during market downtrends.
Here are few EV stocks trading below Rs.200 per share and debt-to-equity below 1:
Servotech Power Systems Limited
Servotech Power Systems Limited is focused on enhancing the EV charging infrastructure by constructing a state-of-the-art manufacturing facility for essential EV charger components, such as power modules and control circuits.
With a market capitalization of Rs. 2,828.95 crore, the share price of Servotech Power Systems Limited closed at Rs.126.89 per share on Friday, 3.09 percent higher than its previous close. The debt-to-equity ratio of the company is 0.42 depicting lower dependence on debt.
For the quarter ended December 2024, the company reported revenue from operations of Rs.181.32 crore and profit after tax of Rs.8.30 crore. In terms of return ratios, the company reported ROCE (Return on Capital Employed) as 13.07 percent and ROE ( Return on Equity) as 11.55 percent.
Samvardhana Motherson International Ltd
Samvardhana Motherson International Limited (SAMIL) is actively expanding its role in the EV sector. The company supplies various EV components, such as lightweight bumpers and HVAC (Heating, Ventilation, and Air Conditioning) systems for electric buses.
With a market capitalization of Rs. 89,677 crore, the share price of the company closed at Rs. 127.45 per share on Friday, 0.33 percent lower than its previous close. The debt-to-equity ratio of the company is 0.78 reducing the risk of financial distress.
For the quarter ended December 2024, Samvardhana Motherson International Limited reported revenue from operations of Rs.27,666 crore and a net profit of Rs.984 crore. In terms of return ratios, the company reported ROCE as 11.85 percent and ROE as 11.61 percent.
Urja Global Limited
Urja Global Limited is investing Rs.2 billion to set up manufacturing units for lithium-ion batteries and electric vehicles in Andhra Pradesh. The company produces electric rickshaws and carts and is developing advanced battery management systems for EVs.
With a market capitalization of Rs.609 crore, the share price of the company closed at Rs.12.02 per share on Friday, 4.98 percent higher than its previous close. The debt-to-equity ratio of the company is 0.04 showcasing lower reliance on debt for financing.
For the quarter ended December 2024, Urja Global Limited reported revenue from operations of Rs.20.20 crore and a net profit of Rs.0.53 crore. In terms of return ratios, the company reported ROCE as 1.19 percent and ROE as 1.16 percent.
Written by – Siddesh S Raskar
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