Top 4 EV stocks from TATA group that are going to lead Electric Vehicle and Green Energy theme.
The big revolution is going to be witnessed in the auto sector across the world, as already global warming is too high. As pollution becoming becoming major issue, now everyone is looking for clean and renewable energy side. t
These segments will lead auto sector further. now every country is being realised that petrol and diesel that are used in vehicles are one of the biggest reason for pollution. already european countries like UK, Germany, Norway and so many countries are decided to ban the petrol and diesel vehicles in their countries in coming near term.
So we can understand that the Electric and other green energy will lead the Auto mobile sector. Even the indian government has been taking too many initiatives towards encouraging the electric vehicles and announced the subsidy schemes to enhance the utilisation and production of Electric vehicles.
In this case not only the electric vehicles but also it is very important to build the ecosystem around the electric vehicles is also a very important such as building charging network and building Lithium ion batteries as they are Heart of electric vehicles. And here are the top 4 ev stocks from TATA group come together to build the ecosystem and environment that can encourages and big boost for Electric Vehicles.
Scope and Growth factors of EV segment :
Basically the Electric Vehicles are better for the environment. they emit lower greenhouse gases as compared to the petrol and diesel vehicles. Already the world has been almost pollutes due to the higher emissions from vehicles and industries. though the production of electric vehicles may raise the pollution but ultimately it’s the lesser than the previous.
Also the natural resources are coming to zero that are producing petrol and diesel. Actually the electric vehicles are cost effective than the petrol and diesel vehicles because they are cheaper to run, cheaper to maintain, better for our health and better for our environment.
Now we discuss the 4 EV stocks from TATA Group that are going to be participate in the growth of this theme and leading this theme to move further and these companies building the ecosystem that this theme needs to grow.
EV Stocks from TATA Group:
1. TATA Motors Ltd
TATA Motors is one of world’s largest and India’s biggest automobile company. and established in 1945. this company manufactures buses, trucks, utility vehicles, cars and defence vehicles. this company operates all over the world with a total of 109 subsidiaries including Jaguar and Land rover. Tata Motors started its electric vehicle journey by launching it’s first vehicle TATA Nexon and now this company transforming itself into the electric vehicle side by launching one more vehicle called the TATA Tigor electric version,
Also company is planning to launch more electric vehicles in coming few years in it’s portfolio. company is expecting 10 electric vehicles in it’s portfolio by 2025. and also this company already announced that it’s UK’s subsidiary Jaguar would become complete vehicle company by 2025 and Land rover will launch 6 electric of it’s 10 vehicles and TATA Motors is having 65% of market share in electric vehicle segment in india.
Financials :
TATA Motors is backed by grat TATA group and this company was struggling financially since last few years. and the revenues of this company are constant. this might due to the slow down in auto sector globally. this company is having 2.75, which is very high still we consider it for long term hence this company is backed by cash rich tata groupa and the company is going to deliver multiple returns in coming 5-10 years if electric theme get success. It builds the confidence as promoters of this company are continuously increasing their stake in the company. though this company has recovered from it’s low 65 to it’s current level Rs. 333, still this stock is trading in 38% discount from it’s all time high.
2. TATA Power Company Ltd
TATA power company ltd is one of the ev stocks from tata group. And india’s leading integrated power companies and across the power value chain this company has the presence such as power services and next generation power solutions including solar roof tops, vehicle charging stations and home automation and this company leads in clean power and sustainable solutions.
This company already established it’s first charging station in Mumbai and now in other cities like Delhi and Hyderabad. being india’s no.1 solar roof tops provider tata power is continuously driving green energy solutions to the smart consumer. tata power is the leader in future source of power and this company is bound to grow.
Recently this company has signed an agreement with HPCL to provide EV charging stations in hpcl fuel stations in multiple cities and major highways across the country. currently this company has the network of 5000+ home chargers and 700+ public chargers in 120+ cities across the country. this company is leading player in clean energy segment as it’s solar business is growing very quickly and it’s roof tops business jumped to 4 times in first quarter of FY 22. TATA power company is working on Clean energy business and EV charging infrastructure which both have immense potential growth in coming future.
Financials :
TATA power company’s revenues and profits are growing constantly in the last five years and the promoter holding is continuously grown from 33% to 46.8%, it shows the strong confidence of promoters in this company. the debt to equity is 2.5 and this company has been doubled it’s returns in last five years to it’s shareholders. This stock is currently trading around Rs. 164
3. TATA Chemicals Ltd
TATA Chemicals Ltd is engaged in the business of manufacturing inorganic chemistry prodicts, and this company is the world’s third largest and Soda Ash and India’s leading vaccum evaporated iodised salt producer. Soda ash used in glass manufacturing and soda ash has seen huge demand as increased focus on renewable energy with government and private sector companies particularly investing for flat glasses in solar application, not only that, Soda ash is the key raw material in processing of Lithium which is the key component in manufacturing Lithium – Ion batteries, as demand for electric vehicles increased that would drive the demand for Lithium ion batteries, that would drive the demand for TATA Chemicals Soda ash.
Financials :
As the company has gone through the restructuring and de merged we can’t discuss the last five years data. if you look at the last quarters data the profits were grown immensely. As there is huge demand for Soda ash, the prices of soda ash has increased more than 100%, that was reflected in company’s profitability. In this company also same story repeats that promoters holding is continuously increasing. this stocks is currently trading at Rs. 911
4. TATA Elxsi Ltd
TATA Elxsi Ltd is one of the leading provider of design and technology services across the industries such as automotive, media and communications and health care. this company helping their customers by enabling them to reimagine their products through their efficient design thinking and applications of digital technologies such as IoT, Cloud solutions, Mobility solutions, Virtual reality and Artificial Intelligence.
If you look at the revenue break up of tata elxsi across the industries the transportation is major contributor with mor 40% contribution. the future generation cars may highly depends on software and AI & ML.
TATA Elxsi is closely working with OEM manufacturers all over the world in building the next generation cars that are connected, integrated, autonomous and electric, also this company won many deals in mobility space for multi year multi million dollar in mobility space.
TATA Elxsi is working on AI based perception model, AI & ML based cabin monitoring system to driver movements also designed intelligent parking technologies such as advance assisted parking system and automated parking system with top global OEMs and tier 1 suppliers.
Financials :
TATA Elxsi’s revenues and profits are growing consistently over the last five years, revenues were grown from 1075 cr to 1984 cr as well athe profits grown from 155 cr to 413 cr. and this is a debt free company and this company has been delivered more than 700% returns in last five years. there is no change in promoters holding in last 12 quarters. this stock is currently trading at Rs. 5600.
Conclusion :
Above we have discussed in detail about top EV stocks from TATA Group, that are going to lead electric vehicle revolution in India. the E-Mobility journey has been just started and there is long way to go. so that these stocks can deliver multiple returns on coming years. however the way TATA companies have come together to build the ecosystem around the electric vehicles. It looks like the TATA group is very serious about electric vehicle revolution and usage of clean energy. it would be great opportunity for these tata companies if e – mobility pick up the momentum. though tata power and tata motors debt levels are high the promoters are significantly increasing their stake in these company would definitely suggests these companies how the promoters are confident about the future of these companies. As far as we concern these stocks for long term, we can definitely accumulate these stocks in considerable corrections.
Also we’ve discussed about the top 5G Stocks from TATA Group.
Disclaimer : The above all recommendations are from the individuals, working for ICICI Securities. please do your own research before investing else take an advice from your financial advisor.