The shares of a company primarily engaged in the manufacturing of electrical buses and composite polymer insulators surged by around 2.3 percent on BSE to Rs. 1,786.65 during the trading session of Tuesday.
Stock Performance:
With a market capitalization of Rs. 14,269 crores, the shares of Olectra Greentech Limited opened in the red at Rs. 1,735, as against its previous closing price of Rs. 1,746.05.
The stock has delivered positive returns of nearly 49 percent of returns in one year, as well as around 26.4 percent returns year-to-date. However, the shares of Olectra Greentech have given negative returns of about 0.3 percent in the last six months.
Strength of the Company:
The company is acknowledged as one of the largest manufacturers of electric buses in India, boasting an impressive order book of more than 8,000 e-buses. This strong position allows Olectra to grow in a rapidly expanding market, where the adoption of electric buses is projected to double by 2025.
Olectra enjoys valuable technological support from BYD, a prominent Chinese electric vehicle manufacturer, which will continue until 2025. This collaboration significantly boosts Olectra’s expertise in battery technology and enhances vehicle performance.
It has shown remarkable revenue growth, achieving a compound annual growth rate (CAGR) of 45% over the last five years. This upward trend suggests a promising potential for future development.
Olectra is also expanding its manufacturing capabilities by land acquisition for a new facility designed to produce up to 10,000 electric buses each year. This strategic move is anticipated to greatly improve the company’s production capacity and execution capability.
Previous Orders:
On 22nd February, the consortium of Olectra Greentech Limited and EVEY Trans Private Limited received a Letter of Award (LoA) from Brihan Mumbai Electric Supply & Transport Undertaking (BEST) for the supply, operation and maintenance of 2,400 e-buses on a Gross Cost Contract Basis for a period of 12 years.
The value of these 2,400 Electric Buses supply was nearly Rs. 4,000 crores for Olectra, with deliveries scheduled in 18 months.
The transactions between Olectra and EVEY were classified as related party transactions and were to be conducted on an arm’s length basis.
On 19th March, Olectra Greentech Limited secured an order valued at Rs. 15.14 crores from Assam State Transport Corporation (ASTC) for the supply of 10 electric buses on an outright basis.
Financials:
The company has reported a significant growth in revenue from operations, with around a 45.4 percent YoY rise from Rs. 216 crores in Q1 FY24 to Rs. 314 crores in Q1 FY25. Similarly, the net profit increased by 33.3 percent YoY from Rs. 18 crores to Rs. 24 crores, over the same period.
On a year-on-year basis, the consolidated EBITDA increased from Rs. 41.5 crores in Q1 FY24 to Rs. 50.5 crores in Q1 FY25, registering a growth of 21.7 percent YoY.
Recent Developments:
The company had acquired 150 acres of land from the Telangana State Industrial Infrastructure Corporation Limited and is setting up a greenfield EV manufacturing plant, with construction in progress.
Olectra Greentech has begun partial operations for producing electric buses and other EV products at this new site.
This new greenfield plant in Hyderabad is designed with an initial capacity of 5,000 electric vehicles per year, which can be expanded to 10,000 EVs annually.
The company has expanded its product line in the e-mobility segment for electric trucks and has started selling the E-Tipper in Q4 FY23. It has also ventured into the private staff transport segment and is working on launching TARMAC buses at airports.
About the Company:
Incorporated in 2000, Olectra Greentech Limited is primarily engaged in the manufacturing of composite polymer insulators, electric buses and electric trucks.
The company manufactures seven-meter, nine-meter and twelve-meter models of air-conditioned electric buses in India.
Written by Shivani Singh
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