10 Best EV Stocks of 2024
In the face of growing concern about environmental issues, India, which is the world’s third-largest automobile market, has an ambitious plan to boost EV uptake. Electric mobility is seen by the government of India as a major tool to reduce emissions and improve air quality leading it to set 30% target of EV penetration by 2030. Consequently, there has been tremendous growth in electric vehicle sales in India lately. In addition, policies that are favorable such as Electric Mobility Promotion Scheme (EMPS) 2024 have led to a huge rise in electric vehicle shares in India.
This article will provide more information on top Indian electric vehicle stocks; characteristics of best EV stocks and how to invest into them.
Top Electric Vehicle Companies in India 2024
Below are some of the finest electric vehicles stocks available for purchase in India:
- Hindustan Copper Ltd
Operated by Ministry of Mines, Government of India; Hindustan Copper Limited is a public sector undertaking established on 9th November 1967 that remains the only devoted copper ore mining company present within the country. HCL holds exclusive mining leases for copper ore and functions as single “fully integrated” producer of refined copper. Also known as Malanjkhand Copper Project (MCP), this complex comprises three mines located at Singhbhum Copper Belt, two smelters and one refinery situated at Jharkhand. As on June 5th 2024 Midcap EV stock’s market capitalization Rs35934 cr.
JBM Auto Ltd
JBM is one among the key players involved with manufacturing electrical buses. JBM Auto being one among its small cap peers helps its develop electric buses along with their components thus enabling eco-friendly public transport system development in India. Besides, this Indian-based EV firm serves as an operator for charging points across various locations throughout country where electrical power gets supplied by means of plug-in hybrid or battery electric vehicles (BEVs). The firm’s market capitalization stands at Rs2186.44 cr as on June 5th 2024. In addition, the revenue has grown at an annual rate of 18.58% over past five years which is higher than industry average of 8.3%.
Himadri Speciality Chemical Ltd
Himadri Speciality Chemical Limited is a worldwide speciality chemical conglomerate with strong focus on research and development (R&D), innovation, and sustainability. The Company is the first one to start production of Lithium-ion Battery Anode Materials in India and has a range of products like specialty carbon black, coal tar pitch, refined naphthalene, new energy materials, SNF, specialty oils, power etc. as well as other items on its product list. As at 5th June 2024 the company’s market capitalisation was Rs 17,269 cr. Over the past five years their earnings have increased by 15.61% p.a., higher than the industry average of 13.56%. In addition to this, the market share for this corporation has risen from 2.7% to .82% in the same period.
Exide Industries Ltd
Exide Industries Limited is one of India’s most famous battery stocks. The firm has many batteries that serve various industries such as automobiles; power; telecom; infrastructure projects; computer industries; railways; mining and defense among others. As at 5th June 2024 the company’s market capitalisation stands at Rs40,353crs. During the past five years its debt-to-equity ratio was just only 4:32% compared to an industry average of 8:56%.
Amara Raja Energy & Mobility Ltd
Amara Raja Batteries Limited is a flagship enterprise of Amara Raja Group which manufactures lead acid storage batteries used for industrial and automotive applications in India. Among these are large Telecom Service Providers (TSP), Telecom Equipment Manufacturers (TEM) UPS sector Indian Railways besides Power,Oil and Gas Companies etc.The company’s market capitalisation stands at Rs40,353crs as on June5th2024.Additionally,it has a debt-to-equity ratio of 4.32% for the five years while having an industry average of 8.56%.
Mahindra and Mahindra Ltd
Mahindra & Mahindra Ltd is an Indian multinational automotive company that has its headquarters in Mumbai, Maharashtra. The company was established in 1945 and has grown to become the dominant player in the auto and farm equipment industries. The product mix of the firm also consists of multiple utility vehicles, sports utility vehicles, tractors, pickups, and two-wheeler as well as agriculture machinery and other industrial goods. Currently this electric vehicle stock has a market capitalisation of Rs. 3,09,045 cr. Over the past five years, this corporation’s sales have been increasing at a compounded annual growth rate (CAGR) of 5.65% compared to industry average rate for that period which stood at 4.68%. Such progress has seen it gain more shares from 20.03% in 2019 to 20.81%.
Hero MotoCorp Ltd
Hero MotoCorp is an Indian motorcycle and scooter manufacturing company based out of New Delhi which is known worldwide for its wide range of products catering to different segments such as entry level commuters’ bikes to premium performance motorcycles including scooters included in their portfolio. As on June-05-2024; this firm had a market capitalization of Rs.1,02,330 cr. However, over the past five years, tata steel’s debt-equity ratio hovered around three times lower than most firms operating within its sector averaging at about twenty four times for those listed under BSE_500 index Moreover, the current ratio amounted almost two times above that found across companies included into Nifty index (by weight).
Tata Motors Ltd
Tata Motors Limited is one of India’s largest automobile manufacturers headquartered in Mumbai. It forms part of Tata Group which is a worldwide conglomerate with subsidiaries dealing with various business sectors being one among them. Founded during pre-independence era, TATA MOTORS LIMITED is one of the oldest automobile company in India. It offers three electric car models; Tata Nexon EV Prime, Tata Nexon EV Max and Tata Tigor EV as well.As on June 05, 2024, this mid-cap has market capitalisation at Rs.3,52,184 cr. and it’s 1.97x more volatile than Nifty.The stock has a PE ratio of 11.22 and PB ratio amounting to 3.78 hence if you are thinking about investing in Indian electric vehicle stocks then consider this one.
Hindalco Industries Ltd
Hindalco Industries Limited is a top Indian Aluminium and Copper manufacturing firm that is listed on the National Stock Exchange of India. It is an arm of Aditya Birla Group. On June 5, 2024, this large cap company had Rs1,50,601 cr market capitalisation that was 2.34x as volatile as Nifty. In the last five years, when the industry grew at pace of 12.97%, there has been an increase in Hindalco’s revenue by 13.64%. Further the company gained its market share from 89.99% to 92.51% during this period.
Vedanta Ltd
It is a natural resources conglomerate domiciled in India. Vedanta Mining and Metals segment includes aluminium, copper, zinc, lead, silver and iron ore amongst others. Its market capitalization stood at Rs1,70,976 crores as at June 5th 2024 while it has volatility with respect to Nifty at a factor of about. As against annual growth rate of industry average of 8.09% over the past five years, revenue surged at CAGR of 8.12%.Further net income increased by CAGR of0.44%,in comparison with -0.26% for the industry over this same time span.
Invest in the Best Electric Vehicles Stocks Selected By SEBI-Registered Analysts
Were you aware that there are professionally managed portfolios of electric vehicle stocks provided by SEBI registered experts? These ready-made portfolios known as smallcases offer an easy way for investors to participate in India’s EV sector which has strong prospects.
These are theme or strategy based baskets of stocks or ETFs called small cases made by registered professionals under SEBI management and supervision.
What comprises EV stocks?
Electric vehicle stock (EV stock) in India is the abbreviation of electric vehicle stocks. These are shares that belong to companies making, manufacturing, and distributing vehicles that operate on electricity, batteries, motors, EV software as well as other charging stations.
Low or even zero fuel costs aside from reduced emissions from electric vehicles make them more environmentally friendly. That’s why investing in e-vehicles benefits nature too. Thus, the Indian government’s emphasis on e-mobility has made some of the best EV stocks in India increasingly becoming popular investment options for most investors who are interested. As such, this article lists some of the best electric vehicle stocks to invest in.
Qualities of Best EV Stocks in India
The choice of an EV stock is dependent on your risk profile and investment goals; nevertheless here are a few things that defines it:
- Strong Financials: The best EV stocks should be profitable with positive cash flow for many years.
- Market Leadership: Being a leader among automakers producing electrical cars in India with strong branding and a range of products. With lots of newcomers emerging onto the Indian e-vehicle scene, identifying and adding market leader to your portfolio creates stability.
- Growth Potential: An electric vehicle stock firm must be strategically positioned to benefit from this trend since it is one of fastest growing sectors within automotive area.
- Experienced Management Team: A management team with automobile industry background & clear vision about future direction must be there into a company dealing with these types of shares.
Types within The Electric Vehicle Sector
The various categories that can define Electric Vehicle (EV) Stocks include:
Battery Manufacturers
A huge chunk of the EV space revolves around battery manufacturing which is essential for power supply in e-cars. It includes businesses involved with producing batteries used by electric cars. In terms of cost to manufacture an S.E.V., electric car batteries especially lithium-ion ones represent a substantial part. Leading participants here include Exide Industries Ltd. and Amara Raja Energy & Mobility Ltd.
EV Manufacturers
These are companies that design, produce and sell electric vehicles. They vary from established automobile conglomerates like Tata Motors Ltd., Mahindra & Mahindra Ltd to new-age start-ups concentrating on manufacturing e-cars, e-bikes and electric buses.
Component Manufacturers
Companies which are involved in the production of various essential parts and components that a car needs to be electric such as electric motors, controllers, power electronics and other critical hardware. JBM Auto Ltd., Himadri Speciality Chemical Ltd. et al fall under this group supplying critical parts used for the effective performance of EVs.
Charging Infrastructure Providers
The increasing adoption of electric vehicles necessitates charging infrastructure. Companies that belong to this category engage in developing and deploying EV charging stations and networks so that EV owners will have convenient access to these facilities anytime they need them.
Raw Material Suppliers
For battery production as well as other EV components, the EV sector largely depends on specific raw materials like lithium, cobalt, nickel and copper among others. These companies include Hindustan Copper Ltd., Hindalco Industries Ltd., etc.; they play an important role in supporting the EV industry by mining and supplying these raw materials.
Software and Technology Providers
This part includes software developers who create solutions for electric vehicles including advanced driver assistance system (ADAS), autonomous driving technologies, vehicle-to-grid (V2G) solutions and battery management systems. Such organizations promote performance enhancement, safety improvement and the user experience enhancement of electric cars globally.
Conclusion
In conclusion, India’s electric vehicle sector is poised for tremendous growth propelled by a combination of supportive government policies, growing awareness of the environment and technological advancement. As the country aims at achieving ambitious EV adoption targets, companies across various segments of the EV space will be instrumental in shaping the future of transport. Battery manufacturers to EV producers, component suppliers to charging infrastructure providers, and raw material suppliers to software and technology developers; all contribute to this revolution.
Investors looking for gains from such radical changes have several options including some of the top Indian EV stocks discussed above. By considering important factors like sound financials, market leadership, potential for growth and experienced management teams investors can make informed choices aligning their portfolios with changing dynamics of electric mobility.
