Globally Every year, the 9th of September is celebrated as World EV Day. This day celebrates the e-mobility mode. It was an initiative created by the sustainability media company Green TV. On this day awareness programs are being carried out to educated the pros of electron vehicles (EVs).
5 Stocks to Watch:
i) Tata Motors:
- Recently news and reports are circulating in News and other sources, wherein it has been read out that the Production-Linked Incentive (PLI) Scheme incentives to Automobile Industry Players will be extended to only Electric Vehicles Producers and may not be available to the other players.
- Earlier, incentive worth Rs. 57,000 Cr. was assigned to the Automobile Industry under this scheme which has now reduced to Rs. 26,000 Cr. Later on, these incentives can be assessed and increased, as and when required.
- In the Current EVs market in the 4-wheeler segment, Tata Motors is having a significant market share of 65% of the Total EVs sold in the country. For sure, the EVs figure is small as compared to the market of IC Engine vehicles, but the company is enjoying and may possess an early mover advantage.
ii) Tata Power:
- Recently Management has discussed how the company is aggressively increasing its focus on Electric Vehicles (EVs) Charging Stations.
- Currently, Out of the total charging stations in the country, 50% of the EVs Charging Stations are owned and controlled by Tata Power.
- There can also be a good combination between Tata Motors and Tata Power in the EV Surrounding.
iii) Tata Chemicals:
- Another Company from Tata Group, Tata Chemical is planning to produce a Lithium-Ion Battery which will be a crucial part of Electric Vehicles.
- The Company has not provided any clear indication and direction in its recent quarterly (Q1FY22) results, but if the Vision of the Tata Group remains intact developing the EVs ecosystem within its Group Companies, then this Company will surely play an important role in the future.
iv) Tata Elxsi:
- Tata Elxsi is in the Technology Service Providing industry to other segments like Automotive, Broadcast, Communication, and others.
- The possibility of usage of Smart Services in the Vehicles in future and the niche this company has developed in its segment will surely benefit this company.
- KPIT Technologies is another software solution company just like Tata Elxsi and hence this company can too be benefited from the same factors which Tata Elxsi is expected to enjoy. In terms of products and services, this company too is giving a strong competition to Tata Elxsi.
1 Bonus Stock:
Indian Energy Exchange (IEX):
- Ultimately, Electric Vehicles are dependent on Energy wherein IEX will play a big role in meeting the supply of energy across the states in the country.
- The Company is having an EBITDA Margin of around 80% and very well enjoys the operating leverage.
- As rapidly the volume of the company will increase, the company will not need any further investments.
- The only risk associated with this company is the Regulatory Risk, which is whether Government will introduce any new player in this sector.