Electric Bus Stocks in India in 2024

The Indian government plans to replace 800,000 diesel buses with electric buses by 2030. This initiative is expected to benefit several companies that manufacture electric buses and their components.

Related News: India to replace 800,000 diesel buses with electric buses by 2030.

11 Electric Bus and Component Manufacturers Set to Benefit From This Initiative

Note: All data is as of 28 May 2024.

1. Mercury EV-Tech Ltd.

The company manufactures a range of electric vehicles in India, including scooters, cars, buses, vintage cars, golf cars, and more. They plan to create custom electric vehicles for sectors such as hospitality and golf courses.

Key Metrics:

• Market Cap: ₹1,229 Cr

• Current Market Price (CMP): ₹70.0

• P/E Ratio: 569

• Return on Capital Employed (ROCE): 4.35%

• Operating Margin (OPM): 21.2%

• Debt to Equity: 0.65

• 3 Years Sales Growth: Data Not Available

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2. Sona BLW Precision Forgings Ltd.

The company designs, manufactures, and supplies automotive systems and components. It has a technology licensing deal with the UK's Equipmake for high-performance electric powertrains.

Key Metrics:

• Market Cap: ₹36,847 Cr

• CMP: ₹628

• P/E Ratio: 75.0

• ROCE: 24.1%

• OPM: 28.1%

• Debt to Equity: 0.15

• 3 Years Sales Growth: 27.4%

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3. Precision Camshafts Ltd.

A major player in the camshaft market with a 70% market share in India. The company is developing India's first mid-size retrofitted E-Bus using EMOSS technology.

Key Metrics:

• Market Cap: ₹1,743 Cr

• CMP: ₹184

• P/E Ratio: 61.8

• ROCE: 6.01%

• OPM: 8.46%

• Debt to Equity: 0.15

• 3 Years Sales Growth: 13.3%

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4. Automotive Axles Ltd.

As the largest independent axle manufacturer and the second-largest brake manufacturer in India, this company plays a vital role in supplying parts to truck and bus manufacturers.

Key Metrics:

• Market Cap: ₹2,962 Cr

• CMP: ₹1,960

• P/E Ratio: 17.8

• ROCE: 26.8%

• OPM: 11.2%

• Debt to Equity: 0.02

• 3 Years Sales Growth: 35.0%

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5. Wardwizard Innovations & Mobility Ltd.

The company is a key player in the electric two-wheeler and three-wheeler market in India, and will soon be producing Brushless DC Motors for both internal use and supply to other electric vehicle manufacturers.

Key Metrics:

• Market Cap: ₹1,311 Cr

• CMP: ₹50.3

• P/E Ratio: 92.7

• ROCE: 17.8%

• OPM: 7.98%

• Debt to Equity: 0.82

• 3 Years Sales Growth: 101%

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6. Subros Ltd.

The company is the largest Air Conditioning & Thermal Products manufacturer in India and has developed an electric air-conditioning system with an integrated battery management system for hydrogen cell buses.

Key Metrics:

• Market Cap: ₹3,953 Cr

• CMP: ₹606

• P/E Ratio: 40.5

• ROCE: 17.2%

• OPM: 9.25%

• Debt to Equity: 0.05

• 3 Years Sales Growth: 19.6%

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7. Ashok Leyland Ltd.

Through its subsidiary, Switch Mobility, the company is actively engaged in manufacturing electric buses and trucks. It has secured significant orders, including for 552 electric buses from Tamil Nadu State Transport Corporation.

Key Metrics:

• Market Cap: ₹66,451 Cr

• CMP: ₹226

• P/E Ratio: 26.2

• ROCE: 15.2%

• OPM: 19.2%

• Debt to Equity: 4.53

• 3 Years Sales Growth: 33.0%

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8. Eicher Motors Ltd.

Known for its iconic Royal Enfield motorcycle brand, Eicher has also signed agreements to supply 1000 electric buses and trucks in collaboration with Amazon India and Greencell Mobility.

Key Metrics:

• Market Cap: ₹1,31,168 Cr

• CMP: ₹4,791

• P/E Ratio: 32.8

• ROCE: 31.1%

• OPM: 26.5%

• Debt to Equity: 0.02

• 3 Years Sales Growth: 23.8%

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9. Tata Motors Ltd.

As India's largest automobile company, Tata Motors is running an EV bus segment through its subsidiary, TML Smart City Mobility Solution Ltd., which operates on a per-kilometer rate model.

Key Metrics:

• Market Cap: ₹3,47,921 Cr

• CMP: ₹949

• P/E Ratio: 10.8

• ROCE: 20.1%

• OPM: 14.3%

• Debt to Equity: 1.26

• 3 Years Sales Growth: 20.6%

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10. Olectra Greentech Ltd.

Specializing in electric buses and composite polymer insulators, Olectra Greentech is planning to expand its manufacturing capacity for electric buses.

Key Metrics:

• Market Cap: ₹14,694 Cr

• CMP: ₹1,790

• P/E Ratio: 191

• ROCE: 14.8%

• OPM: 11.9%

• Debt to Equity: 0.13

• 3 Years Sales Growth: 60.1%

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11. JBM Auto Ltd.

The company has expanded into manufacturing various electric buses and is working on delivering significant orders to different city transport services.

Key Metrics:

• Market Cap: ₹25,274 Cr

• CMP: ₹2,137

• P/E Ratio: 141

• ROCE: 14.6%

• OPM: 11.6%

• Debt to Equity: 1.82

• 3 Years Sales Growth: 36.2%

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Investing in electric buses and their component manufacturers presents a significant opportunity as India moves to replace its diesel fleet with electric ones. These companies, with their strong financial metrics, are well-positioned to benefit from this ambitious transition.

Disclaimer: The data provided in this article should not be considered as investment advice. The analysis is intended for educational and learning purposes only. Please conduct thorough research or consult with a financial advisor before making any investment decisions.