The transportation sector is continuously evolving, with a significant shift towards electric vehicles (EVs) as a sustainable alternative to traditional fossil-fuel-powered transport. This shift is about adopting new technology and existing businesses adapting to keep pace with EV pioneers like Tesla. The move towards EVs aligns with changing industry dynamics and environmental considerations.
For savvy investors who are keen on staying ahead in the investment game, EV stocks in India offer a promising avenue. These stocks are gaining attention as they hold the potential for financial growth, even in times when traditional markets might be experiencing a downturn. In this context, it’s crucial to explore the Indian EV market and identify the top EV stocks that are shaping the future of transportation in India. This analysis will help investors make informed decisions about where to place their investments in this burgeoning sector.
Name | Sub-Sector | Market Cap (in ₹ crore) | PE Ratio (x) | 5Y CAGR (%) | 1Y Return (%) |
Adani Power Ltd | Power Generation | 210,010.33 | 19.58 | 60.99 | 84.73 |
Tata Motors Ltd | Four Wheelers | 151,860.11 | -11.29 | 42.25 | 144.15 |
Bharat Electronics Ltd | Electronic Equipments | 133,293.82 | 44.66 | 43.85 | 81.71 |
CG Power and Industrial Solutions Ltd | Heavy Electrical Equipments | 68,933.95 | 71.61 | 59.77 | 64.61 |
Suzlon Energy Ltd | Renewable Energy Equipment & Services | 51,345.67 | 18.02 | 50.78 | 251.63 |
KEI Industries Ltd | Cables | 29,115.95 | 61.00 | 55.32 | 112.91 |
Apar Industries Ltd | Electrical Components & Equipment | 23,571.97 | 36.96 | 55.05 | 228.09 |
JBM Auto Ltd | Auto Parts | 19,780.38 | 159.03 | 68.82 | 223.47 |
Inox Wind Ltd | Heavy Electrical Equipments | 16,763.53 | -25.14 | 46.62 | 373.57 |
HBL Power Systems Ltd | Batteries | 12,717.70 | 128.92 | 74.88 | 335.91 |
Note: The above list of agricultural stocks is dated January 3, 2023. These stocks are sorted from highest to lowest based on the market capitalisation. The following parameters were used to get the list:
Now, let’s look at these stocks briefly.
This company is one of the largest private power producers in India, with a capacity of over 12,000 MW. It has also ventured into the EV charging infrastructure segment by setting up charging stations across various cities in partnership with other entities.
This company is one of the leading automobile manufacturers in India, with a presence in both passenger and commercial vehicles. It has launched several EV models, such as the Nexon EV, the Tigor EV, and the upcoming Altroz EV. It has also invested in battery manufacturing and charging solutions.
This state-owned enterprise manufactures various electronic products for the defence, aerospace, and civilian sectors. It has also developed EV components, such as battery management systems, chargers, and converters.
This diversified engineering conglomerate offers products and services for the power, industrial, and consumer sectors. It has also entered the EV segment by providing electric motors, controllers, and chargers for various EV applications.
This company is one of India’s leading renewable energy solutions providers, focusing on wind power. It has also diversified into the EV sector by offering battery storage solutions and charging stations.
This company is a leading manufacturer of wires and cables for various sectors, such as power, telecom, railways, and infrastructure. It has also ventured into the EV space by supplying cables and connectors for EV charging stations.
This company is a major producer of speciality oils, conductors, and cables for various industries, such as power, telecom, railways, and automotive. It has also expanded into the EV domain by manufacturing and supplying conductors, cables, and lubricants for EVs.
This company is a leading automotive component and system manufacturer in India, with a portfolio of products such as chassis, body, exhaust, and fuel systems. It has also entered the EV market by launching its own EV bus brand, ECO-LIFE, and setting up EV charging stations.
This company is a prominent wind energy solutions provider in India, with a capacity of over 2,400 MW. It has also diversified into the EV sector by offering battery storage solutions and charging stations.
This company is a pioneer in the field of batteries and power electronics in India, with a range of products such as lead-acid, lithium-ion, nickel-cadmium, and nickel-metal hydride batteries. It has also entered the EV segment by providing batteries, chargers, and power electronics for EVs.
The electric vehicle (EV) industry in India is poised for significant growth in the coming years. As of 2022, the market size of the Indian EV sector stood at US$ 772 million, with projections indicating an impressive expansion to US$ 19,980 million by 2028. This represents a compound annual growth rate (CAGR) of 69% from 2023 to 2028.
The surge in the EV market is not just limited to passenger vehicles; a substantial portion of this growth is expected to come from the two-wheeler and three-wheeler segments. By 2030, EVs could comprise over 40% of India’s automotive market, potentially generating more than $100 billion in revenue. Further supporting this optimistic outlook is a study that forecasts a CAGR of 43.13% for India’s EV industry between 2019 and 2030.
As part of the budgetary provisions, Minister Sitharaman underscored support for Battery Energy Storage Systems with a capacity of 4,000 MWH through viability gap funding. The government’s initiatives, such as the Faster Adoption of Manufacturing of Electric Vehicles Scheme – II (FAME – II) and the Production Linked Incentive Scheme (PLI), aim to incentivise electric vehicle manufacturers. Notably, the budget earmarked ₹51.72 billion for the FAME-II scheme, representing an 80% increase from previous allocations.
However, realising this potential will require addressing several structural challenges. These include ensuring robust policy support, enhancing safety standards, reducing battery costs, developing new products, optimising distribution channels, prioritising specific customer segments, advancing software technology, and expanding charging infrastructure. The combination of these efforts will be crucial in harnessing the full potential of India’s EV market.
Investing in electric vehicle (EV) stocks requires careful consideration of various factors, given the unique dynamics of this rapidly evolving sector. Here are some crucial factors to keep in mind:
Investing in the rapidly evolving Electric Vehicle (EV) sector in India offers a unique opportunity for investors. With the convenience of platforms like Angel One, opening a demat account and beginning your investment journey in EV stocks becomes more accessible and easy.
However, it’s important to remember that stock market investments have inherent risks. Therefore, seeking guidance from a financial advisor and conducting thorough research before making any investment decisions is advisable. This approach ensures that your investment choices are well-informed and aligned with your financial objectives.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted are examples and are not recommendatory.
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