Shares of a key electric vehicle (EV) manufacturer slipped 5% amid supply delays, yet analysts spotlight upcoming innovations as catalysts for recovery. The firm, valued at ₹30,000 crore, leads the two-wheeler EV space with 40% market share.
Consumer trends favor sustainability. Urban riders, facing fuel costs up 10%, shift to EVs, with sales volumes doubling to 2 million units annually.
Innovation takes center stage. The company unveils solid-state batteries next quarter, promising 50% longer range and 20% cost cuts, positioning it against global rivals.
Economic analysis links this to India's net-zero ambitions. EV penetration targets 30% by 2030, supported by PLI schemes allocating ₹26,000 crore.
Policy implications are profound. Subsidies under FAME-III extend to 1 million units, slashing effective prices by 15% and spurring rural uptake.
Market impact: Peers in auto ancillaries gain 7%, as localization mandates boost domestic sourcing to 70%.
Challenges include raw material volatility. Lithium prices, volatile at $15,000/tonne, pressure margins at 12%.
Trading at ₹80, the stock offers a 3x EV/EBITDA multiple, attractive for long-term bets. Brokerages like a top firm rate it "accumulate," forecasting 35% revenue growth.
Fiscal metrics strengthen. Cash reserves top ₹5,000 crore post-IPO, funding R&D at 8% of sales.
As Q3 results loom, expectations build for 25% YoY delivery surge. Festive discounts accelerated orders by 40%.
This dip tests conviction, but EV innovation underscores sector potential. Investors monitoring green stocks should weigh infrastructure gaps.
