Top EV stocks to watch out for in 2024 amid India’s focus on sustainable mobility
Upstox
5 min read • Updated: February 19, 2024, 7:48 PM
Summary
Leading EV stocks like HBL Power, Olectra Greentech, JBM Auto, Tata Motors and Bharat Electronics have delivered returns in the range of 80% to 430% in the last one year. And, here's why these EV stocks could remain in focus in 2024.
Leading EV stocks like HBL Power, Olectra Greentech, JBM Auto, Tata Motors and Bharat Electronics have given returns up to 430% in the last one year.
The electric vehicle (EV) segment has emerged as a compelling opportunity for investors as the government has been taking several initiatives for sustainable mobility. The central government has laid strong emphasis on promotion of green mobility. As part of the strategy, it came out with the faster adoption and manufacturing of (hybrid &) electric vehicles in India scheme (FAME India) to promote adoption of electric vehicles. The second phase of the FAME scheme, FAME II, is in continuation while the industry is waiting for the roll out of FAME III.
Though the government did not mention FAME III in Interim Budget 2024, it announced measures strengthening the electric vehicle (EV) ecosystem, including storage and charging infrastructure. The government increased the Budget allocation for the production-linked incentive (PLI) scheme to ₹3,500 crore for FY 2024-25 from ₹483.77 crore in FY 2023-24. The allocation for advanced chemistry cell (ACC) and battery storage under PLI scheme was also increased from m ₹12 crore to ₹250 crore in 2024-25.
State governments also dole out incentives for buyers of electric vehicles to deal with rising pollution levels and cut vehicular emissions.
According to a PIB release, EV registration grew to 8,19,223 units between June to December 2023 (till December 15) compared to 6,84,789 vehicles in the same period in 2022, registering nearly 20% growth. All these developments have led to increasing interest in electric vehicle stocks among investors. At the same time, these stocks have been rewarding too with returns of up to 450% in the past year. Leading EV stocks like HBL Power, Olectra Greentech, JBM Auto, Tata Motors and Bharat Electronics have given returns up to 430% in the last one year.
Both EV manufacturers and EV batteries and components makers like Exide Industries, Amara Raja Energy and Mobility and Ramkrishna Forgings have gained from investors’ focus in the green shares.
Here is the list of the top five electric vehicle shares that could bring rewarding investment opportunities in 2024. These companies are leading automakers and also operate in related fields like renewable energy, charging infrastructure and battery technology.
Tata Motors
Leading Indian carmaker Tata Motors holds around 70% market share in India’s EV sector. Tata Motors expects a 30-40% growth in EV sales in 2024 after nearly doubling the market size in 2023. The auto major recently announced a reduction in prices of its Tata Tiago EV and Nexon EV models to drive up sales.
Tata Motors in the past one year has given returns of around 111%. The stock price rose to ₹933.1 from ₹443 on February 20 last year.
Olectra Greentech
Olectra Greentech Ltd (Olectra) is India’s largest electric bus manufacturer. It has deployed electric buses for inter-city and intra-city travel in India. After the commercial success of its green buses, the company is expanding its product line in electric trucks and electric tippers. It has manufacturing facilities at Hyderabad.
In the past 12 months, the stock of Olectra has gained more than 360% from ₹436.75 apiece to ₹2,003.50 per share. In the past month, Olectra shares have spurted around 21%. The company reported around 33% jump in net sales in the December quarter.
HBL Power
HBL Power offers mobility products and solutions such as permanent magnet axial flux motors, motor control solutions, complete drivetrain solutions including energy storage components, Li-On batteries, EV chargers and battery storage systems. It has five manufacturing facilities serving customers in defence, electronics and e-mobility segments.
The Hyderabad-based company has seen more than 400% jump in share prices from ₹101.75 per share to ₹538.40 apiece in the past 12 months. In the last one month the shares appreciated by around 15%.
JBM Auto
JBM Group is one of leading electric bus manufacturers in India and the world. It is also a major auto components supplier. The company has also ventured into the production of EV charging infrastructure, Lithium-ion batteries solutions for HV- LV Battery operated vehicles, Energy Storage Systems and renewable energy solutions.
JBM Auto shares have jumped around 280% in the past year from ₹526.20 per share to ₹2,014.45 apiece. In the past month the stock jumped around 11%.
Exide Industries
Exide Industries is a major lead-acid batteries and storage solutions provider. The company is positioning itself in the EV segment with an investment of around ₹6,000 crore in a phased manner to set up a 12Gwh Li-Ion battery plant. The stock has risen around 85% in the past year from ₹181.35 per share to ₹336.40 per share.
In addition to these shares, two-wheeler major HeroMotocorp, auto parts supplier Ramkrishna Forgings, Fiem Industries, Amara Raja Energy and Mobility, Bharat Electronics, Minda Corp and Rattan India Enterprises have appreciated up to 120% in the past 12 months with the growing EV market in India.
In conclusion
The government’s push for sustainable mobility has propelled a positive sentiment for the EV stocks in recent months. The EV market in India is growing rapidly and the leading players in the industry are deploying more capital for capacity enhancement and innovative technology. While the EV stocks promise growth prospects in future, according to analysts, the investors are likely to keep a keen watch on the sector. It is advisable to make an informed choice and seek guidance of market experts before putting your money in India’s growing EV sector.