The Electric Vehicle (EV) industry in India has been experiencing significant growth, with over a million EV units sold in the country in FY 2022-2023, and the market size is expected to reach 113.99 billion dollars by 2029.
With this, many businesses have jumped on board to gain popularity before the industry radically transitions from conventional fossil fuels.
Listed below are the stocks that fall under the EV category and also have a low debt:
Olectra Greentech Ltd
With a market capitalization of Rs. 11,927 crores, the shares of this electric bus manufacturing company started Friday’s trading session on a higher note at Rs. 1,354 compared to the previous close of Rs. 1,349.05. The shares hit a high of Rs. 1,493, gaining around 9 percent, which is also recorded as the company’s fresh 52-week high and closed the day at Rs. 1,452 apiece.
Looking at the company’s financial statement, the revenue zoomed by 84 percent from Rs. 593 crores during FY21-22 to Rs. 1,091 crores during FY22-23. In addition, the net profits magnified by 92 percent from Rs. 35 crores to 67 crores during the same timeframe.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 4.66 percent during FY 21-22 to 8.27 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 7.73 percent to 13.37 percent during the same timeframe.
Furthermore, the company has a low debt-to-equity ratio of 0.16 percent which means it has not relied much on debt to fund its operation.
The company has its manufacturing facilities in Hyderabad, with a current manufacturing capacity of 1,500 units per year, and as of November 2023, it has 8,209 Orders On hand. Moreover, they are setting up a new greenfield plant with a capacity of 5,000 units per year and scalability of up to 10,000 units per year and have acquired 150 acres of land in Hyderabad for the same purpose.
Amara Raja Energy and Mobility Ltd
With a market capitalization of Rs. 14,265 crores, the shares of this batteries manufacturing company started Friday’s trading session on a higher note at Rs. 821 compared to the previous close of Rs. 816.80. The shares hit a high of Rs. 843, gaining around 5 percent, which is also recorded has the company’s fresh 52-week high and closed the day at Rs. 834.95 apiece.
Looking at the company’s financial statement, the revenue increased by 20 percent from Rs. 8,696 crores during FY21-22 to Rs. 10,386 crores during FY22-23. In addition, the net profits zoomed by 27 percent from Rs. 511 crores to 649 crores during the same timeframe.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 11.7 percent during FY 21-22 to 14.1 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 16.01 percent to 19.6 percent during the same timeframe.
Furthermore, the company is almost debt-free, with a debt-to-equity ratio of 0.02 percent which means it has not relied much on debt to fund its operation.
The company has 7 manufacturing facilities located in Andhra Pradesh. Moreover, in 2022, the company entered into the New Energy business through Amara Raja Advanced Cell Technologies, which is a 100 percent subsidiary, and has laid out a capex plan of Rs. 95 billion for setting up a Giga Corridor in Telangana.
Hero MotoCorp Ltd
With a market capitalization of Rs. 79,755 crores, the shares of this two-wheeler manufacturing company started Friday’s trading session on a higher note at Rs. 3,960 compared to the previous close of Rs. 3,946. The shares hit a high of Rs. 4,037, gaining around 2 percent and closed the day at Rs. 3,990 apiece.
Looking at the company’s financial statement, the revenue increased by 16 percent from Rs. 29,551 crores during FY21-22 to Rs. 34,158 crores during FY22-23. In addition, the net profits zoomed by 21 percent from Rs. 2,329 crores to 2,800 crores during the same timeframe.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 14.92 percent during FY 21-22 to 17.26 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 119.47 percent to 23.93 percent during the same timeframe.
Furthermore, the company is almost debt-free, with a debt-to-equity ratio of 0.04 percent which means it has not relied much on debt to fund its operation.
The company is focusing on expanding its electric two-wheeler business, with plans to cover more than 100 cities and expand the charging infrastructure. Moreover, the company’s investment in Ather is expected to bring strategic infrastructure, particularly in charging infrastructure and standardisation.
Written By Vaibhav Patil
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