Top 10 EV Stocks in India 2022

 



If you are an investor and looking for the best sector to invest which has a great future, then the electric vehicle is the hot bait. EV stocks are booming in India, and in the future, you will not just witness auto stocks but also stocks that support the industry.

After the pandemic, people have started realizing the need for electric vehicles. The alarming pollution level, which was reduced significantly during the lockdown, has given a new perspective on sustainable transportation.

Thought process behind picking EV stocks?

India is the world’s fourth biggest emitter of carbon dioxide after China, the US and the EU. Accordingly, the Government of India, has aggressively pushed for electric vehicle adoption in the country. The focused efforts have seemed to start showing the results as 2022 seems to be the year of Electric Vehicle stocks or EV stocks.

The exponential rise in number of electric two-wheelers in India during 2021 and the back-to-back launch of electric cars by Tata, BMW, Kia, Honda, Hyundai have all directed focus of Indian Automotive market to Electric Vehicles. This interest is also being reflected in EV Stocks and even if you are not active in the stock market, it is difficult to miss or ignore the discussion around the Indian EV sector. 

Indian Companies will likely follow the footsteps of Telsa and its success in US market. Now it is high time to shift to sustainable energy sources. The automobile industry is among the top to produce electric-powered vehicles for consumers and make the planet safer and green. Thus switching towards sustainable alternatives proved a good choice for automobile manufacturers. 

Mainly EV industry can be divided into 4 parts:

a)  Auto manufacturers

b) Auto parts and EV software

c) Battery manufacturing 

d) EV charging stations/ infrastructure

 

We have compiled a list of most promising EV stocks that you can buy in India and can be a very good bet on your portfolio of stocks.

 

10. Greaves Cotton

Having a diversified class of business, Greaves Cotton has recently acquired a two-wheeler electric company named Ampere Vehicles with a target of entering the two-wheeler EV manufacturing market as the segment has a strong potential to prosper in the coming future. 

Current CMP: 169.25

1 Year Returns: 21.5%

PE Ratio: -114.01

 

9. Himadari Specialty Chemical Limited

The company is a significant presence in the chemical industry, but it has now announced to step into the EV segment by making electric bicycles. 

Current CMP: 96.7

1 Year Returns: 104.66%

PE Ratio: 98.54

 

8. Tata ELXSI Limited

Tata ELXSI is an IT-software development company that indulges in building software involved in EVs manufactured by Tata Motors. The company has also developed stock software that any EV can use. ELXSI is expected to sell this software to other auto manufacturers in the form of licensing in the future. 

Current CMP: 8870.85

1 Year Returns: 83.79%

PE Ratio: 105.92

 

7. Power Grid Corporation of India Limited

The state-owned company, which mainly supply high-voltage transmission and grid management to industries like telecom, is likely to set up charging station all over the country. With the state ownership label, the company is expected to enjoy government contracts and deals in future.

Current CMP: 227.05

1 Year Returns: 29.37%

PE Ratio: 9.55

 

6. Tata Power

Tata Power has already proved to be a conventional electricity providing company to the consumer. The company is setting up a charging station at various locations such as parking spaces, malls, and authorized automobile service centers. 

Current CMP: 232.65

1 Year Returns: 80.14%

PE Ratio: 43.14

 

5. TATA Chemicals Limited

The company’s vision is different from its competitors as Tata Chemicals focuses on developing an ecosystem of battery generation.

Current CMP: 1132.4

1 Year Returns: 35.71%

PE Ratio: 22.5

 

4. Exide Industries Limited

Exide is one of the major players in the battery industry. Till now, they were manufacturing lead-based batteries used in traditional vehicles. But now, they have full-fledged manufacturing lithium-ion batteries, which is an essential component of an electric vehicle.

Current CMP: 159.7

1 Year Returns: -1.15%

PE Ratio: 3.13

 

3. Hero MotoCorp Limited

Along with four-wheelers, the electric two-wheeler market is also on the boom. Hero MotoCorp has taken the initiative to expand a minor segment of two-wheelers.

Current CMP: 2827.05

1 Year Returns: 3.7%

PE Ratio: 24.38

 

2. Mahindra & Mahindra

Mahindra is the pioneer of EV in the Indian space. Being the first major EV manufacturer, it launched Mahindra Reva, its first EV as early as 2001. The Mahindra Reva was India’s first electric car. Over the years Mahindra has gone ahead to set up a dedicated R&D center in Bengaluru.

Current CMP: 1276.8

1 Year Returns: 61.3%

PE Ratio: 23.17

 

1. Tata Motors

Tata is India’s biggest automobile manufacturer. Its automobile segment ranges from the manufacture of cars, utility vehicles, buses, trucks, and defense vehicles. Its associate companies include Jaguar Land Rover and Tata Daewoo. But when it comes to the EV segment Tata is a new entrant when compared to Mahindra.  

Current CMP: 453.35

1 Year Returns: 55.28%

PE Ratio: -14.52

 

One Point to note is EV industry is usually high on debts as the starting capital required is huge but given the business potential and future profitability these aspects can be ignored.

Do you own any of the stocks? comment below to discuss about.

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