Best EV Stocks in India 2024

Investing in Electric Vehicles(EV) stocks offers a huge possibility for investors as the world is rapidly shifting towards sustainable energy resources. In recent times many key aspects helped in the rise of Electric Vehicles in India they include improvements in battery technology and strong government support including policies and incentives.

So this offers a great opportunity for investors to take advantage of this sector. In this article, we will explore the best EV stocks in India that you can add to your portfolio. So let

Electric Vehicle Industry Overview

The electric vehicle (EV) sector in India is undergoing tremendous growth propelled by government incentives, increased environmental awareness, and technological advancements. 

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme is among other such schemes that aim to encourage more people to use electric vehicles. 

The target is to have 30% of all private cars sold as EVs, 70% of all commercial vehicles being EVs, 40% of all buses being EVs, and 80% of all two- and three-wheelers being EVs by 2030. This totals close to 80 million electric vehicles across India. 

EV sales in India soared by 49.25% in 2023, reaching 1.52 million units. According to projections, these figures could rise from USD 3.21 billion in 2022 to USD 113.99 billion by the year 2029, representing a compound annual growth rate of 66.52%. In addition, the EV battery market is also expected to grow from USD 16.77 billion in 2023 to USD 27.70 billion by 2028. 

As of February 2024, India has 12,146 public EV charging stations, with Maharashtra leading all states with the highest number of such points. The Confederation of Indian Industries (CII) estimates that there will be a need for 1.32 million charging points by the year 2030 and thus, at least 400000 should be built each year. 

Maharashtra and Karnataka among other states have set ambitious targets regarding their electric vehicle adoption schemes aiming at having EVs take a 10% share of new vehicle registrations by December 2025 and 100% electrification of cargo vehicles by December 2030, respectively. (Source: IBEF)

List of Best EV Stocks in India 2024

Now that we deeply understand the EV industry, let's check out the best EV stocks in India from different sectors

(Source: Screener)

Note: These EV stocks ranking is based on market capitalization. Please conduct a detailed analysis before investing. The Key metrics are recorded as of July 30, 2024, and may vary daily.         

Best EV Stocks in India - Overview

1) Tata Motors Ltd

Tata Motors Limited is a $44 billion organization. It is a leading global automobile manufacturer, offering a diverse portfolio of smarter, integrated, and safer mobility solutions. They are recognized for their world-class quality, engineering, and design excellence. 

They are a part of the multi-national conglomerate, the Tata Group. It offers a wide and diverse portfolio of cars, sports, utility vehicles, trucks, buses, and defense vehicles to the world. They have operations in India, the UK, South Korea, South Africa, China, Brazil, Austria, and Slovakia through their strong global network of subsidiaries, associate companies, and Joint Ventures, including Jaguar Land Rover in the UK and Tata Daewoo in South Korea.

In the electric vehicle category, Tata offers five-passenger vehicles including Tiago, Tigor, Nexon, Punch and Xpres T. Around 150000 of these vehicles have already been sold in India itself till now. Their plans include improving their EV systems by engaging in different collaborations and partnerships.

Here is an overview of the company's fundamentals:

• Market Capitalization: Rs. 4,26,792 Cr.

• Current Market Price: Rs. 1,162

• Industry P/E: 28.5

• Stock P/E: 13.2

• Debt to Equity Ratio: 1.26

• Dividend Yield: 0.26%

• Return on Equity (ROE): 49.40%

• Return on Capital Employed (ROCE): 20.10%

• Sales Revenue: Rs. 437,928 Cr.

• Net Profit: Rs. 31,807 Cr.

• 5-Year CAGR of Sales Growth: 8%

• 5-Year CAGR of Profit Growth: 93%

  (Source: Screener)     

2) Exide Industries Ltd

Exide Industries Limited is the leading battery maker in India and also a well-known multinational giant that is eminent in this line. Its range of products comprises lead-acid batteries for diverse uses such as automotive, industrial, and submarine. They also produce battery backup systems for various renewable energy devices. Exide Industries Limited is a leader in the battery manufacturing sector that has an extraordinary reputation in the world with its financial performance and production capacity. 

Exide established 11 production plants where more than 5100 people are working permanently. This firm exports to 63 countries and maintains itself as a leading multinational company dealing with energy storage solutions around the world.

Exide is actively investing in research and development to innovate and improve its battery technologies, positioning itself as a competitive player in the rapidly evolving EV landscape.

Here is an overview of the company's fundamentals:

• Market Capitalization: Rs. 45,227 Cr.

• Current Market Price: Rs. 532

• Industry P/E: 37.8

• Stock P/E: 51.7

• Debt to Equity Ratio: 0.09

• Dividend Yield: 0.38%

• Return on Equity (ROE): 7.05%

• Return on Capital Employed (ROCE): 10.20%

• Sales Revenue: Rs. 16,770 Cr.

• Net Profit: Rs. 883 Cr.

• 5-Year CAGR of Sales Growth: 3%

• 5-Year CAGR of Profit Growth: 2%

  (Source: Screener)

3) Hindustan Copper Ltd

Hindustan Copper Limited (HCL), a Miniratna Category-I Government of India Enterprise under the Ministry of Mines. It was founded on November 9, 1967, under the Companies Act, 1956. It was established to take over all copper-related operations from the National Mineral Development Corporation Ltd.

HCL is the sole company in India engaged in copper ore mining and holds all the operating mining leases for copper ore. It is also the only vertically integrated producer of refined copper, with facilities for producing and marketing copper concentrate, copper cathodes, continuous cast copper rods, and by-products etc. Currently, the company focuses on mining and beneficiation operations, primarily selling copper concentrate.

HCL operates five units across India: the Malanjkhand Copper Project in Madhya Pradesh, the Khetri Copper Complex in Rajasthan, the Indian Copper Complex in Jharkhand, the Taloja Copper Project in Maharashtra, and the Gujarat Copper Project in Gujarat.

HCL's Electric Vehicle Services Management Platform (EVSM) provides a range of services tailored to help automakers and fleet operators efficiently manage their electric vehicle operations. This platform emphasizes different elements of EV management, such as monitoring vehicle performance, overseeing charging infrastructure, and utilizing data analytics.

Here is an overview of the company's fundamentals:

• Market Capitalization: Rs. 30,776 Cr.

• Current Market Price: Rs. 318

• Industry P/E: 36.2

• Stock P/E: 104

• Debt to Equity Ratio: 0.1

• Dividend Yield: 0.29%

• Return on Equity (ROE): 13.50%

• Return on Capital Employed (ROCE): 18.00%

• Sales Revenue: Rs. 1,717 Cr.

• Net Profit: Rs. 295 Cr.

• 5-Year CAGR of Sales Growth: -1%

• 5-Year CAGR of Profit Growth: 15%

  (Source: Screener)

4) JBM Auto Ltd

JBM Group, a $2.6 billion global conglomerate, networks across 25 locations and 10 countries globally. Essential auto systems, electric vehicles, and buses are the primary products of JBM which provide long-term value to their stakeholders. Fidelity to technology advancement, innovation promotion, and worker empowerment for more than 25,000 people have contributed to this company’s success.

JBM Group leads the way in innovative, high-tech transportation solutions enhancing value across various segments and operations. The company has transformed public transportation with its advanced low-emission and electric buses, setting new standards in comfort, safety, affordability, and innovation. 

With decades of expertise in the manufacturing and development sector, JBM has positioned itself as a significant player in the Electric Vehicle business.

Here is an overview of the company's fundamentals:

• Market Capitalization: Rs. 24,874 Cr.

• Current Market Price: Rs. 2,104

• Industry P/E: 37.8

• Stock P/E: 139

• Debt to Equity Ratio: 1.82

• Dividend Yield: 0.06%

• Return on Equity (ROE): 16.30%

• Return on Capital Employed (ROCE): 14.60%

• Sales Revenue: Rs. 5,009 Cr.

• Net Profit: Rs. 194 Cr.

• 5-Year CAGR of Sales Growth: 18%

• 5-Year CAGR of Profit Growth: 13%

  (Source: Screener)

5) Olectra Greentech Ltd

Olectra Greentech LTD is based in Hyderabad, India, and stands as India’s premier manufacturer of electric buses. This company has manufactured and supplied a full range of Electric bus variants in India. Building its leadership in the commercial bus segment, the company is now broadening its services into e-mobility segments by developing electric trucks and tippers. 

Olectra Greentech Limited has successfully delivered 1,695 electric buses and 51 electric tippers as of March 31, 2024. The world’s largest order for electric buses has been secured by this firm, with a deal comprising 5,150 buses from MSRTC. An order for 3,000 electric buses has also been received by Olectra from Brihanmumbai Electricity Supply and Transport Mumbai (BEST) Mumbai.

Olectra became the first OEM in the country that surpass 10,000 electric bus orders making an important milestone. The company has further extended its cooperation agreement with BYD (a Chinese manufacturing MNC) until December 31, 2030. In all, Olectra’s electric buses have together traveled more than 200 million kilometers covering different terrains across.

Here is an overview of the company's fundamentals:

• Market Capitalization: Rs. 14,071 Cr.

• Current Market Price: Rs. 1,714

• Industry P/E: 28.4

• Stock P/E: 183

• Debt to Equity Ratio: 0.13

• Dividend Yield: 0.02%

• Return on Equity (ROE): 8.76%

• Return on Capital Employed (ROCE): 14.80%

• Sales Revenue: Rs. 1,154 Cr.

• Net Profit: Rs. 79 Cr.

• 5-Year CAGR of Sales Growth: 47%

• 5-Year CAGR of Profit Growth: 47%

  (Source: Screener)

Things to Consider Before Investing in EV Stocks

Now that we have the company overview, let’s check the things to know before investing in the best EV stocks in India

Government Policies

The growth and profitability of EV companies can be significantly influenced by subsidies, incentives, and tax breaks for EV manufacturers and buyers. Consider this before investing in the best EV stocks.

Technological Advancements

Battery technology advancements, charging infrastructure improvements and vehicle performance can spur consumer adoption and impact stock prices.

Market Demand

The preferences of consumers who love green vehicles that consume less fuel can raise the demand for electric cars thereby affecting their incomes and stock prices. 

Energy Prices

Fluctuations in electricity prices and the cost of alternative energy sources can influence the overall cost of ownership for EVs, affecting demand. Consider this before investing in the best electric vehicle stocks in India.

Supply Chain Issues

Any disturbances within the supply chain like a shortage of semiconductors or other vital parts might result in delays in production schedules and costs.

Raw Material Costs

An increase in the prices of raw materials can significantly affect the company’s profit and sales, which can directly impact the company's performance.

How to Invest in the Best EV Stocks in India?

Now that we’ve explored the factors to consider before investing, let’s review the steps for investing in top EV stocks

• One must research and find the best EV stocks in the market

• Evaluate and assess your risk appetite and fix your financial goals

• Shortlist the stocks based on your fundamental and technical analysis

• Open Demat account and trading account through a trusted stockbroker

• Invest in the shortlisted stocks and monitor them regularly

Conclusion

The growth track of India's electric vehicle market is very fascinating, largely due to the benefits from the government, continued technological advancements, and growing consumer awareness. When the market is rapidly evolving, an investment in EV stocks brings good prospects due to long-term expansion and potential for innovation in this sector. Although there are challenges such as infrastructure development and high battery costs, the continuous innovative steps being taken and supportive policies pave the way for a cleaner, more sustainable future. As India presses on with electrification, the path toward mass EV adoption will be transformational for the automotive sector, full of opportunities and challenges for investors and stakeholders alike.