5 Best EV Stocks in India

ev stocks

Electric Vehicle (EV) Stocks in India: An Introduction 

The global automobile industry has initiated a shift towards sustainability in recent years amidst rising environmental concerns. India, the world’s third-largest automobile market has been at the forefront of adopting these greener solutions. As a part of this exercise, the country has pledged to adopt electric vehicles (EVs) and has set an ambitious 30% electric vehicle penetration by 2030. 

The enhanced interest in the EV industry has made EV stocks in India a promising investment.

EV Stocks in India: On an Upward Surge

Fuelled by governmental initiatives to use electric mobility as a tool to reduce emissions and improve air quality the EV sector stocks are now in great demand amongst a majority of investors. Increased awareness about climate change, rising fuel prices and aligning with the global trend of sustainable transportation have all boosted the popularity of EV sector stocks. 

Want to be on top of your investments? Invest in EV sector stocks which have time and again proved their financial potential even amidst global downturns. 

The 5 Best EV Stocks in India

1. Tata Motors(TAMO)

Established in the year 1954, TAMO is India’s largest automobile manufacturer and a dominant force in India’s commercial vehicle market with a solid international presence. The company, with a net profit of Rs. 4,570.05 crores and a net Cash flow (CF) of Rs. 31,886.95 crores, is involved in the manufacture of cars, buses and passenger coaches. 

The 52-week low and high of this auto giant with a Piotroski score of 8.00 lies between Rs. 504.35 and Rs.1,065.60. The face value of the company’s stock with 9 million of its cars on the roads is valued at 2 and the earnings per share (EPS) is Rs.11.92. 

2. Mahindra and Mahindra (M&M)

Established in 1945, M&M has the unique distinction of being the world’s largest producer of tractors. The company, with a net profit of Rs.6548.64 and a net CF of Rs.-13,379 Cr, is an industry leader in farm equipment, IT and financial services. The company’s stock face value is 5 and the Piotroski score is also 5.

The company is focused on mobility products such as EVs, farm equipment, commercial vehicles and pickups. The 52-week high and low of the company which has a presence in over 100 countries is between Rs. 2063 and Rs. 1544 and has an EPS of Rs.87.7 

3. Hero MotoCorp (HEROMOTOCO)

One of the country’s leading manufacturers of two-wheelers and their spare parts. The company, with a net profit of Rs. 3,967.96 crores and a net cash flow of Rs. 2789 crores, has established its presence in over 41 countries.

In 2023, Hero MotoCorp had a stock face value of 2 and a Piotroski score of  7 and ventured into the electric mobility sector with a fully integrated electric scooter. The 52-week low and high of the company which was established in the year 1984 is Rs.575.85 and Rs. 4979.95. The EPS value of the Hero Moto Corp is valued at Rs.186.5.

4. Bajaj Auto

With over 18 million bikes in over 70 countries, Bajaj Auto can easily be classified as the world’s most valuable two and three-wheeler company. With over 75 years of experience, the company with a net profit of Rs. 9822.01 and a net cash flow of Rs. 7,478.27 entered into the EV sector in 2022.

The company stocks have an EPS of  Rs. 265.1, a Piotroski score of 8 and a face value of 10. The 52-week low and high ranges between Rs. 4450.0 and Rs. 9356.0. The company ranks first in motorcycle exports and is easily the world’s favourite Indian brand.

5. Exide Batteries (EXIDEIND)

Exide, with its headquarters in Kolkata, has been synonymous with batteries for automobiles, power and telecom sectors amongst others. The 75-year-old market leader has a net profit of  Rs. 1,409.88 and a net cash flow of –Rs.1,996.52.

Exide operates 10 state-of-the-art manufacturing units across India. Its stock face value is 1 and the EPS is Rs.10.3. The Piotroski score of 6 indicates that the company is stable in its growth. The 52-week low and high is ₹ 187.3 and ₹ 485.0

Here is a ready reckoner of the various pointers of the best EV Stocks in India:

 

TAMO

M&M

HEROMOTOCO

BAJAJ-AUTO

EXIDEIND

Dividend Yield (%)

0.21

 0.73

 2.05

 0.89

 0.45

Return on Equity (ROE) (%)

28.58

  14.3

 18.4

 23.3.

 6.8

Return on Capital Employee (ROCE) (%)

5.4

 1.8

 24.7

 30.2

 9.6

Market Cap (in crore)

₹ 3,62,135 

 ₹3,59,783 

₹88,812

  ₹2,53,235

 ₹39,435

Book Value

₹161.09

₹455.82

 ₹777.98

   ₹1,031.90

 151.60

Total Debt (in crore)

₹1,34,113.44

 ₹88,767 

 ₹606.6

 ₹124

 ₹700

Debt to Equity

2.38

  1.58

 0.0209

 6.2

 0.09

Stocks P/E

17.69

24.45 

 25.12

 18.1

 18.4

Note: This blog is only for informational purposes; we are not SEBI registered, and we are not promoting any company or pushing you to buy stocks of a specific company; please do your research before purchasing the stocks.

EV Sector Stocks: Factors to Consider

Here is a list of factors to pick the best EV stocks in India:

Market Frontrunner

With the rapid growth of the EV industry, there is a steady influx of new players. However, if you are looking for stable investments, it is advisable to identify and invest in EV sector stocks of well-established industry leaders. 

Research and Development

Invest in EV sector stocks of companies that research technological innovations in the EV industry as they have an edge over their counterparts.

Governmental Regulations

Keep an eye on government policies, incentives and regulations as they can impact the profitability of the EV sector stocks. 

Proven Track Record

Choose EV sector stocks that have performed well and generated consistent profits.

Mergers and Acquisitions

Check out the mergers and acquisitions of the EV companies as they can influence the price of the EV sector stocks. 

The Road Ahead for EV Sector Stocks

Undoubtedly, EV sector stocks will see rampant growth in the subsequent years. The introduction of newer models, supporting governmental policies, improved battery technology and better charging infrastructure will all help in taking the EV industry forward. In this scenario, investing in the best EV sector stocks in India is quite appealing. 

Always remember that stock market investments are fraught with an element of risk. Invest in EV sector stocks after a careful analysis of the various factors. Keeping abreast of the dynamic industry trends would help make an informed decision for guaranteed long-term gains.

If you are still apprehensive about making the wrong choice of EV sector stocks, then you can consult financial experts like LenDen for a better understanding of this investment opportunity. 

Frequently Asked Questions

1.  I am interested in investing in EV sector stocks in India. How should I go about it?

Conduct detailed research of the EV sector stocks listed in the Indian stock exchanges and choose wisely. You can also open a demat account and buy the best EV sector stocks in India through a brokerage platform.

2.  How are the EV sector stocks in India classified?

The EV sector stocks in India can be broadly classified into automobile and battery manufacturers, auto parts and EV software and charging station network segments. 

3.  Who should invest in EV sector stocks in India?

Any investor who would like to be part of the sustainable transportation solution and is looking at long-term growth profits should invest in the EV sector stocks. 

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.


LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping lenders diversify their investments beyond traditional investment instruments ever since.

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