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Category: Electric Vehicles

  • Olectra Greentech: 107.8% PAT Growth,₹500Cr Expansion Plans

    Olectra Greentech Limited – Q3 FY25 Results

    Olectra Greentech Limited Q3 FY2025 Results

    Value Pick Best stock to buy

    NSE: OLECTRA | BSE: 532439

    Sector: Electric Vehicles & Polymer Insulators

    Key Financial Metrics

    Market Cap

    ₹11,919 Cr

    Book Value

    ₹120

    ROCE

    14.8%

    ROE

    8.77%

    Debt

    ₹187 Cr

    Reserves

    ₹949 Cr

    Sales Growth (3Y CAGR)

    60.1%

    Profit Growth (3Y CAGR)

    112%

    Q3 FY2025 Performance Analysis

    Financial Performance (Standalone)

    • Revenue: ₹50,683.45 Lakh (YoY growth: 52.7%)
    • EBITDA Margin: 14.5%
    • PAT: ₹4,630.57 Lakh (YoY growth: 107.8%)
    • EPS: ₹5.64 (vs ₹2.71 YoY)
    • Net Profit Margin: 9.1%

    Business Segments

    Electric Vehicles Division

    • Q3 Revenue: ₹45,977.93 Lakh (90.7% of total)
    • YoY Growth: 55.4%
    • Profit Before Tax & Interest: ₹5,926.52 Lakh

    Growth Drivers

    • Expansion in public electric transport sector
    • Government-backed FAME-II tenders
    • Strategic partnerships with BYD and EVEY Trans

    Insulator Division

    • Q3 Revenue: ₹4,705.52 Lakh (9.3% of total)
    • YoY Growth: 30.5%
    • Profit Before Tax & Interest: ₹1,224.35 Lakh

    Growth Drivers

    • Growing power transmission infrastructure demand
    • Expansion in domestic and export markets
    • Steady cash flow with higher margins

    Growth Plans & Expansion Strategy

    Manufacturing Expansion

    • New EV manufacturing facility development
    • Battery technology localization initiatives
    • Capex: ₹300-500 Cr investment plan
    • Expansion of charging infrastructure

    Product Development

    • Electric trucks launch planning
    • Battery-integrated electric vehicles
    • Hydrogen fuel cell technology exploration
    • R&D focus on indigenous technology

    Financial Health & Capital Structure

    • Debt-to-Equity Ratio: 0.19x
    • Interest Coverage Ratio: Strong position with robust cash flows
    • Working Capital Management: Efficient inventory and receivables
    • Cash Reserves: Adequate for planned expansion

    Competitive Analysis

    Market Position

    • Leading player in electric bus segment
    • Strong R&D capabilities with BYD partnership
    • Established presence in state-run electric bus projects
    • Growing market share in insulator segment

    Industry Challenges

    • Raw material price volatility
    • Global supply chain disruptions
    • Increased competition in EV segment
    • Policy implementation dependencies

    Disclaimer: This research report is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before making investment decisions.

    Date: February 2025

  • Exicom Tele-System: EV Charging Revolution

    Exicom Tele-System Ltd – Value Pick Multibagger

    Exicom Tele-System Ltd

    Value Pick Multibagger Stock for long term investment

    exicom.in           BSE: 544133           NSE: EXICOM

    Executive Summary

    Exicom Tele-System Ltd. is a frontrunner in the sustainable energy and EV charging ecosystem, leveraging its 30+ years of expertise in power solutions. The company is poised to benefit from its aggressive capacity expansion, innovative product offerings, and government-driven tailwinds in the electric mobility and renewable energy space. Despite short-term earnings pressure, Exicom’s strategic positioning and long-term growth potential make it an attractive opportunity for investors seeking exposure to the EV and clean energy transition.

    Key Company Metrics

    • Market Cap: ₹2,948 Cr.
    • Current Price: ₹244
    • 52-Week High/Low: ₹530/₹169
    • P/E Ratio: 78.3
    • Book Value: ₹60.4
    • Debt: ₹620 Cr.
    • Dividend Yield: 0.00%
    • ROCE: 20.0%
    • ROE: 13.5%
    • PAT (FY24): ₹37.7 Cr.
    • Sales (FY24): ₹970 Cr.
    • Sales Growth (3Y): 25.7%
    • Profit Growth (3Y): 163%
    • Promoter Holding: 69.6%
    • Free Float: 30.4%

    Future Growth Drivers

    EV Charging Infrastructure

    • Comprehensive product portfolio catering to AC and DC fast chargers, home chargers, and liquid-cooled dispensers (480 kW).
    • Favorable government policies, including ₹10,900 Cr. in subsidies and incentives for EVs and charging infrastructure under India’s EV roadmap.
    • Targeting a dense urban and highway charging network with high-powered stations to address range anxiety.
    • Key milestones:
      • Expanded EVSE (Electric Vehicle Supply Equipment) capacity at the upcoming Hyderabad plant.
      • Orders secured from major Charge Point Operators (CPOs) and OEMs.
      • Integration of “Plug & Charge” functionality by March 2025.

    Critical Power Solutions

    • Large projects include:
      • BharatNet III (₹2,000 Cr. opportunity)
      • BSNL 4G saturation (₹360 Cr.)
      • Telecom Li-ion battery upgrades (₹800 Cr.)
    • Entry into new segments like data centers, energy storage, and renewable integration.
    • Exicom maintains a leadership position with advanced hybrid power systems and lithium-ion battery solutions.

    Export Markets & Product Innovation

    • Export Market Strategy:
      • Focused expansion in Southeast Asia, Europe, and the US
      • NEVI-compliant chargers
      • Partnerships with global OEMs
      • Collaboration with Hubject for e-roaming solutions
    • Product Innovation:
      • ₹40 Cr. investment in R&D
      • Portable 3.3kW home chargers
      • Advanced distributed chargers (240-600 kW)

    Planned Expansions

    Hyderabad Integrated Manufacturing Facility

    • Total built-up area: 280,000 sq. ft.
    • Civil work completion: January 2025
    • Trial production expected: April 2025
    • Capacity Expansions:
      • AC charger production: 42k to 180k units
      • DC chargers: 2,400 to 3,500 units
    • Green building practices, including 1.5 MW solar plant

    IPO Proceeds Deployment

    • ₹151.47 Cr. allocated for Telangana plant (₹37.35 Cr. utilized)
    • ₹69 Cr. for incremental working capital
    • ₹40 Cr. for R&D and product development

    Financial Projections

    • Revenue for FY24: ₹970 Cr.
    • Projected CAGR: 20-25% over next three years
    • EBITDA margin improvement:
      • FY24: 8.35%
      • FY27 (projected): ~12%
    • PAT Projection:
      • FY24: ₹37.7 Cr.
      • FY25 (projected): ₹50 Cr.
      • FY27 (projected): ₹100 Cr.
    • Debt/Equity ratio expected to reduce steadily

    Competitive Landscape

    Peers

    • Delta Electronics: Global scale and technology leader in EVSE
    • ABB: Premium DC fast chargers
    • Tritium: Focused on modular DC charging

    Exicom’s Strategic Advantages

    • Vertical integration reduces production costs
    • 200+ service engineers across India
    • Extensive partnerships with OEMs, utilities, and fleet operators

    Inherent Risks

    High Valuation Multiples

    P/E ratio of 78.3x indicates stock priced for significant growth, leaving limited room for valuation errors.

    Execution Challenges

    Potential delays in plant commissioning or product rollout could affect earnings momentum.

    Policy & Competitive Risks

    Over-reliance on government subsidies and potential market share erosion by larger global players with advanced technologies or aggressive pricing.

    Valuation

    Valuation Methodologies

    • Using discounted cash flow (DCF) methodology with a 10% discount rate, Exicom’s fair value per share is estimated at ₹300-₹320.
    • Peer comparison and EV/EBITDA multiples suggest a valuation range of ₹290-₹310, reflecting the company’s high growth potential and leadership in EV infrastructure.

    Investment Thesis

    Exicom represents a unique opportunity to capitalize on the EV revolution and renewable energy transition. Strong growth drivers, capacity expansions, and a robust order book support long-term bullish outlook. Recommended for investors with high-risk appetite.

    Disclaimer: This report is for informational purposes only. Always consult a financial advisor before making investment decisions.

  • Minda Corp: EV Revolution Leader – consistent Growth & Flash Electronics Synergy

    Minda Corporation Ltd. – Investment Analysis

    Minda Corporation Ltd.

    Value Pick – Best share to buy for long term investment

    Market Cap

    ₹13,950 Cr.

    Current Price

    ₹584

    52-Week Range

    ₹653 / ₹366

    P/E Ratio

    53.3

    Book Value

    ₹87.9

    ROCE

    15.2%

    ROE

    12.8%

    Dividend Yield

    0.24%

    Business Overview

    Minda Corporation Ltd. is a leading auto component manufacturer with a diversified portfolio spanning traditional internal combustion engine (ICE) components and electric vehicle (EV) systems. The company has been enhancing its product offerings and geographical reach to leverage growth opportunities in India’s evolving automotive sector.

    Strategic Growth Drivers

    EV-Focused Strategic Partnership

    • 49% stake acquisition in Flash Electronics (₹3,100 Cr. enterprise value)

    • Key Products: EV traction motors, motor controllers, BLDC motors, IDU mid-drive motors

    • Kit values for e2W powertrains: ₹30,000–₹35,000

    Revenue Diversification

    • EV products: 20% of Flash Electronics’ revenue

    • International revenue: 24% of total revenue

    • 8 global manufacturing plants including 2 in Europe

    Financial Projections

    Metric Value
    Sales Growth (3Y CAGR) 25.2%
    Profit Growth (3Y) 34.5%
    Projected EPS (FY25) ₹11.5
    Target P/E 55x
    Price Target ₹640

    Competitive Landscape

    Key Competitors

    • Bosch and Varroc Engineering

    • Delphi and Valeo

    Strategic Customers

    • Global OEMs: Audi, BMW, Ducati, Tata, Yamaha

    Risk Factors

    Macroeconomic Risks

    Currency exchange rate fluctuations impacting export profitability

    Adoption Risk

    Dependence on EV penetration rates and market dynamics

    Supply Chain

    Exposure to global semiconductor and raw material shortages

    Investment Thesis

    Minda Corporation is strategically positioned to capitalize on India’s growing EV landscape. The Flash Electronics acquisition diversifies revenue streams and solidifies leadership in EV powertrain systems. The company’s prudent financial management, sustained R&D investment, and partnerships with leading OEMs highlight its long-term growth potential.

    Disclaimer

    This report is for informational purposes only. It is not intended to serve as financial or investment advice. Please consult your financial advisor before making any investment decisions.

  • Greaves Cotton Limited (GREAVESCOT) Equity Research: EV Transformation, Financial Analysis, and Investment Potential in 2024

    Greaves Cotton Limited (GCL) – Equity Research Report

    Greaves Cotton Limited (GCL)

    NSE: GREAVESCOT | BSE: 501455

    Executive Summary

    Greaves Cotton Limited emerges as a transformative engineering and mobility solutions company, strategically pivoting from traditional diesel engines to a diversified, future-focused portfolio. With a robust presence in electric mobility, retail services, and engineering solutions, GCL represents a compelling long-term investment opportunity amid India’s evolving industrial and automotive landscapes.

    Market Cap

    ₹4,846 Cr

    Book Value

    ₹58.4 per share

    Return on Equity

    1.62%

    Debt Level

    ₹84.0 Cr

    Segment Performance (Q2 FY25)

    Consolidated Financials

    Total Revenue: ₹705 Cr

    EBITDA Margin: 14.4%

    Net Profit: ₹-34.9 Cr

    Electric Mobility

    Revenue: ₹175 Cr

    Growth: 30% YoY

    Three-wheeler EV Growth: 30%

    E-two-wheeler Growth: 29%

    Strategic Growth Roadmap

    Key Objectives

    • Revenue Target: ₹10,000 Cr by FY30
    • Growth Strategy: 15% CAGR over six years
    • Expand EV product range
    • Develop fuel-agnostic solutions
    • Enhance retail and aftermarket services

    Risk Assessment

    Key Challenges

    • Profitability Concerns
      • Recent quarterly losses
      • Margin compression
      • Ongoing transformation costs
    • Competitive Landscape
      • Intense EV market competition
      • Rapid technological changes
    • Macroeconomic Uncertainties
      • Global economic volatility
      • Potential regulatory shifts

    Investment Recommendation

    Rating: Hold with Positive Outlook

    Target Price: ₹300/share

    Investment Horizon: 3-5 years

    Ideal Investor Profile

    • Patient capital seekers
    • Believers in sustainable mobility
    • Investors comfortable with transformation stories

    Disclaimer: This report is for informational purposes only and should not be considered financial advice. Always conduct personal research and consult financial professionals before making investment decisions.

    Greaves Cotton Limited (GCL)

    Founded: 1859

    Headquarters: Mumbai, India

    TradingView chart

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