Electric vehicles (EVs) are becoming increasingly popular in India, as the government pushes for greater adoption of clean energy sources and the automotive industry looks to reduce emissions. Investing in EV stocks can be a great way to capitalize on this trend and potentially earn significant returns in the coming years.
Here, we will explore the companies’ financial performance, growth prospects, and overall potential for success in the EV market. These stocks may not be suitable for all investors, so it is important to conduct your own research and consult with a financial advisor before making any investment decisions. However, for those looking to invest in the EV space in India, these stocks are worth considering.
What are EV Stocks?
EV stocks, also known as electric vehicle stocks, refer to companies that are involved in the production and development of electric vehicles (EVs). These companies may produce the actual vehicles, the batteries that power them, or the charging infrastructure necessary to support them.
Some well-known EV stocks include Tesla, General Motors, and Ford, who have all announced plans to increase their production and development of electric vehicles in the coming years. Additionally, there are smaller companies, such as Li Auto and NIO, that are focused specifically on the production of electric vehicles in China and other markets.
Investing in EV stocks can be a way for individuals to gain exposure to the growing electric vehicle market, which is expected to see significant growth in the coming years as governments and consumers continue to prioritize sustainable transportation options.
Future of EV in India
Government support for electric vehicles
The Indian government has announced several measures to promote the adoption of electric vehicles in the country, including financial incentives for manufacturers and buyers, and the creation of charging infrastructure.
Increasing demand for electric vehicles
With growing concerns about air pollution and climate change, more and more consumers in India are looking to switch to electric vehicles as a way to reduce their carbon footprint.
Advancements in technology
Electric vehicle technology is constantly evolving, with new developments in battery technology, charging infrastructure, and vehicle design making electric vehicles more affordable and practical for consumers.
Investment in electric vehicle manufacturing
Several major car manufacturers, including Tata Motors and Mahindra, are investing heavily in electric vehicle production in India, which is expected to drive down the cost of EVs and increase their availability.
Growing network of charging stations
The government and private companies are working to create a comprehensive network of charging stations across the country, making it easier for electric vehicle owners to charge their vehicles on the go.
Potential for job creation
The adoption of electric vehicles in India could create significant new jobs in the manufacturing, maintenance, and charging infrastructure sectors.
Role in reducing air pollution and reducing dependence on fossil fuels
The widespread adoption of electric vehicles in India would significantly reduce the country’s dependence on fossil fuels and help to improve air quality in major cities.
Best EV Stocks to Invest in 2023 in India
Tata Motors Limited
Tata Motors Limited is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India. It is a subsidiary of Tata Group, an Indian conglomerate. The company manufactures a wide range of vehicles, including cars, buses, trucks, and military vehicles.
Tata Motors is the largest automobile manufacturing company in India, and the world’s fourth-largest truck manufacturer and second-largest bus manufacturer. The company has a strong presence in the commercial vehicle segment, and also offers passenger cars, sports cars, and luxury cars through its subsidiaries.
The PE ratio of the stock is negative, still it’s considered to be the best among EV and Auto mobiles as well. It has a Compounded Sales Growth of 5% over the past 10 years. Moreover, it has a CAGR of 4% over the past 10 years.
Mahindra and Mahindra Limited
Mahindra and Mahindra Ltd is an Indian multinational automobile manufacturing company headquartered in Mumbai, Maharashtra. The company is known for producing a range of vehicles, including SUVs, trucks, buses, and tractors.
Mahindra and Mahindra also have a presence in various other industries such as aerospace, defence, two wheelers, and renewable energy. The company has a strong reputation for innovation and sustainability, making it one of the leading players in the Indian automotive industry.
The PE Ratio of the stock is around 19, which is quite low as compared to it’s peers. It has a dividend yield of 0.87%. It has maintained a Compounded Sales Growth of 4% and a Compounded Profit Growth of 8% over the past 10 years. Moreover, it has a CAGR of 11% over the past 10 years.
Ashok Leyland Limited
Ashok Leyland Ltd is a leading Indian automotive company that specializes in the manufacturing of commercial vehicles such as buses and trucks. Founded in 1948, the company is headquartered in Chennai, India and is a part of the Hinduja Group. With a strong presence in the Indian market, Ashok Leyland also exports its vehicles to various countries across the globe.
The company is known for its commitment to innovation and sustainability, and has been awarded numerous accolades for its contributions to the Indian automotive industry.
The PE Ratio of the stock is around 135, which is very high as compared to its peers. It has a dividend yield of 0.68%. It has maintained a Compounded Sales Growth of 3% and a Compounded Profit Growth of -39% over the past 10 years. Moreover, it has a CAGR of 19% over the past 10 years.
Greaves Cotton Limited
Greaves Cotton Limited is a leading engineering company in India that specializes in manufacturing and supplying diesel engines, generators, pumps, and other power equipment. Founded in 1859, the company has a rich history of providing high-quality products and services to customers across various industries.
With its state-of-the-art manufacturing facilities and a dedicated team of experts, Greaves Cotton Limited is committed to delivering innovative and reliable solutions that meet the needs of its customers.
The PE Ratio of the stock is around 76.4, which is quite high as compared to its peers. It has a dividend yield of 0.14%. It has maintained a Compounded Sales Growth of 1% over the past 5 years. Moreover, it has a CAGR of 6% over the past 10 years.
Electrotherm (India) Limited
Electrotherm (India) Limited is a leading manufacturer and supplier of industrial heating equipment in India. The company offers a wide range of products including electric heating elements, temperature controllers, and industrial ovens. Electrotherm has a strong reputation for delivering high-quality products and excellent customer service.
The company has a team of experienced engineers who design and develop innovative heating solutions to meet the specific needs of their customers. With its state-of-the-art manufacturing facilities and a dedicated R&D team, Electrotherm is committed to providing the best heating solutions to its customers.
The PE Ratio of the stock is negative. It has a dividend yield of 0.87%. It has maintained a Compounded Sales Growth of 5% and a Compounded Profit Growth of 8% over the past 5 years. Moreover, it has a CAGR of 7% over the past 10 years.
Endurance Technologies Limited
Endurance Technologies Limited is an Indian automotive component manufacturing company headquartered in Aurangabad, Maharashtra. The company specializes in the production of aluminium die-castings, suspension and braking systems, and transmission components for two-wheelers, three-wheelers, and four-wheelers.
Endurance Technologies has a strong presence in the domestic and international markets and is considered one of the leading players in the Indian automotive component industry. The company has a total of five manufacturing facilities across India and employs over 10,000 people.
The PE Ratio of the stock is around 43, which is quite high as compared to its peers. It has a dividend yield of 0.43%. It has maintained a Compounded Sales Growth of 7% and a Compounded Profit Growth of 10% over the past 10 years. Moreover, it has a CAGR of 3% over the past 5 years.
JBM Auto Limited
JBM Auto Limited is a leading Indian automotive manufacturing company that specializes in the production of commercial vehicles such as buses and trucks. The company was established in 2008 and has quickly become a major player in the Indian automotive industry. JBM Auto Limited is known for its innovative designs, advanced technology, and superior quality products.
The company has a strong focus on sustainability and is committed to reducing its environmental impact. With a wide range of products and a strong reputation for excellence, JBM Auto Limited is a trusted name in the Indian automotive industry.
The PE Ratio of the stock is around 34, which is quite low as compared to its peers. It has a dividend yield of 0.19%. It has maintained a Compounded Sales Growth of 13% and a Compounded Profit Growth of 21% over the past 10 years. Moreover, it has a CAGR of 54% over the past 10 years.
Exide Industries Ltd.
Exide Industries Limited is an Indian multinational company that manufactures and sells lead-acid batteries. The company was founded in 1947 and is headquartered in Kolkata, India.
It is one of the largest manufacturers of lead-acid batteries in the world and supplies batteries for a wide range of applications, including automobiles, inverters, and power backup systems. Exide Industries has a strong presence in both the domestic and international markets, with a network of over 10,000 dealers and distributors in India and operations in more than 40 countries worldwide.
The company has also been recognized for its commitment to sustainability and has implemented several initiatives to reduce its environmental impact.
The PE Ratio of the stock is around 17, which is quite low as compared to its peers. It has a dividend yield of 1.22%. It has maintained a Compounded Sales Growth of 11% and a Compounded Profit Growth of 16% over the past 10 years. Moreover, it has a CAGR of 24% over the past 10 years.
Conclusion
In conclusion, the electric vehicle market in India is expected to grow significantly in the next few years. With the government’s push towards electric mobility and the increasing demand for environmentally friendly vehicles, investing in EV stocks can be a smart move.
Among the best EV stocks in India for 2023 are Tata Motors Ltd, Mahindra and Mahindra Ltd, Ashok Leyland Ltd, Greaves Cotton Ltd, Electrotherm (India) Limited, Endurance Technologies Limited, JBM Auto Limited, and Exide Industries Ltd. These companies have a strong presence in the Indian market and have been actively investing in the development and production of electric vehicles.
With the increasing demand for EVs, these companies are well-positioned to capitalize on the growing market and provide investors with solid returns. Therefore, investors who are looking to invest in the EV market in India should consider these companies as potential investments.