Best Electric Vehicle Stocks to Invest in India in Sep 2024 – 5yr CAGR Basis

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India’s electric vehicle (EV) sector is growing rapidly due to government incentives, environmental concerns, and technological advancements. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme pushes for more EVs and a shift towards sustainable transportation.

India aims to have 30% of private car sales, 70% of commercial vehicle sales, 40% of bus sales, and 80% of two- and three-wheeler sales be electric by 2030. This translates to an ambitious goal of having 80 million EVs on the road by then. Additionally, India wants to achieve full domestic EV production through the ‘Make in India’ initiative. In this article, we are going to learn about best electric vehicle related stocks in India.

Best Electric Vehicle Stocks In September As Per 5-Year CAGR

Note: The list of the best electric vehicle stocks in India listed in stock market provided here is as of August 27, 2024. The stocks are picked from the Nifty 500 universe and sorted as per their 5-year CAGR.

Overview Of 5 Best Electric Vehicle Stocks in September

1. HBL Power Systems Ltd

HBL Power Systems Ltd, founded in 1986 by Dr. A.J. Prasad, manufactures and provides e-mobility solutions, various types of batteries, and other related products. HBL produces electronics, engineering products, and industrial batteries, serving sectors like Indian railways, UPS, telecom, and defence. The company has a global presence, with subsidiaries such as HBL America Inc. and HBL Germany GMBH, operating in North America, Europe, and the Middle East.

For the most recent quarter ended June 2024, the company’s revenue decreased to ₹511.23 crore from ₹604.28 crore in the preceding quarter. Meanwhile, the net profit increased to ₹74.26 crore from ₹70.58 crore in the previous quarter.

Key metrics: 

• EPS: 10.44
• P/E: 64.82
• ROE: 24.02

2. JBM Auto Limited

JBM Auto Limited is the main company of the JBM Group, which has a diverse range of businesses including automotive, engineering and design services, and renewable energy. The group has 35 manufacturing plants and 4 engineering and design centres in 18 locations worldwide.

For the most recent quarter ended June 2024, the company’s revenue decreased to ₹1,054.39 crore from ₹1,331.83 crore in the preceding quarter. Meanwhile, the net profit increased to ₹33.92 crore from ₹10.13 crore in the previous quarter.

Key metrics: 

• EPS: 6.37
• P/E: 297.10
• ROE: 7.21

3. Apar Industries Limited

Apar Industries Limited was founded in 1958 by Late Shri Dharmsinh D. Desai. It is a well-established company in India that operates in electrical and metallurgical engineering. Apar Industries offers a range of products and services, including power transmission conductors, petroleum specialty oils, and power and telecom cables.

For the most recent quarter ended June 2024, the company’s revenue decreased to ₹3,746.54 crore from ₹4,225.59 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹195.56 crore from ₹238.44 crore in the previous quarter.

Key metrics: 

• EPS: 205.50
• P/E: 43.74
• ROE: 22.34

4. Linde India Ltd

Linde India Ltd supplies gases and related products and services across India. The company has long-term onsite agreements with major companies such as TATA, SAIL, and JSW. Linde India also provides over 200 tonnes of medical oxygen daily to both government and private hospitals. They have set up the world’s largest Air Separation Units (ASU) in Jamnagar.

For the most recent quarter ended June 2024, the company’s revenue increased to ₹653.23 crore from ₹630.07 crore in the preceding quarter. Meanwhile, the net profit increased to ₹111.54 crore from ₹104.33 crore in the previous quarter.

Key metrics: 

• EPS: 51.56
• P/E: 141.50
• ROE: 12.80

5. Polycab Ltd

Polycab is one of India’s top manufacturers of cables, wires, and related products like uPVC conduits, lugs, and glands. They offer a wide variety of cables and wires for almost any use. Recently, Polycab has expanded into consumer electrical products, including fans, switches, switchgear, LED lights, solar inverters, and pumps.

For the most recent quarter ended June 2024, the company’s revenue decreased to ₹4,601.48 crore from ₹5,432.70 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹387.67 crore from ₹458.14 crore in the previous quarter.

Key metrics: 

• EPS: 116.72
• P/E: 57.96
• ROE: 21.55

Benefits of Investing in EV Stocks

• High Growth Potential: The EV market is still developing, offering the chance for substantial returns.
• Government Support: The Indian government is committed to achieving 30% electric mobility by 2030 and has announced several measures to support this goal.
• Sustainability Goals: Investing in EVs helps contribute to a cleaner, greener future.

Things to Keep in Mind Before Investing

• Company Fundamentals: Review the financial health and growth plans of the EV company.
• Investment Horizon: EV stocks are best for long-term investors. So, make sure to consider the timeline of your investment before making a decision.
• Portfolio Diversification: While EV stocks are promising, diversify your investments across different sectors to manage risk.

Conclusion

As the country aims to meet ambitious targets for EV adoption by 2030, investing in top electric vehicle stocks presents a promising opportunity for growth. However, it is crucial to evaluate each company’s fundamental investment horizon and maintain a diversified portfolio to manage risk effectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.