May not be Tesla, but can bet on OK play Goldstone
Electric car maker Tesla eclipsed auto industry giants Ford Motor and General Motors to become the most valuable American automaker last week. While new age businesses like electrical vehicles (EVs) are well-accepted in some developed nations, the segment is at a nascent stage here. However, it has potential going ahead, analysts said.
As per the India's Society of Manufacturers of Electrical Vehicles, EVs constitute less than 1% of the total vehicle sales in India but has potential to grow over 5% in a few years. “We need to look at how it is accepted in terms of cost and mainte nance,“ said G Chokkalingam, founder, Equinomics Research & Advisory.
Those looking to play the theme could look at OK Play India and Goldstone Infratech, analysts said.
Goldstone Infratech
CMP: Rs 79.75; P|E: 50.62; Year-toDate Returns: 198.7%
The Hyderabad-based manufacturer of silicon rubber insulators is making inroads in the EV space in partnership with Warren Buffetbacked Chinese electrical vehicle manufacturer BYD. In November, the company received its first order of six electric buses from the Brihanmumbai Electric Supply & Transport Undertaking (BEST). In February , it bagged an order for 25 electric buses from the Himachal Road Transport Corporation.
“Our parallel target is electric trucks and electric three-wheelers,“ said PK Srivastava, head of e-bus division at Goldstone Infratech. “We plan to make 200-300 buses per year, which means the turnover will go to `500 crore from this.“
He expects the share of this segment to go up to 50% in a year from 10% currently . The company is also in the process of setting up a plant in Hyderabad in partnership with BYD, said Srivastava. In the nine months ended December, Goldstone reported a profit of `3.2 crore on a revenue of `71 crore. Its shares have surged 357% in the last one year.
OK Play India
CMP: Rs 143.50; P|E: 57.3; Year-toDate Returns: 17.9%
Plastics auto component company OK Play India ventured into the EV industry in 2015 with launch of electric rickshaw e-Raaja and now makes a range of electric vehicles.More recently , the company made its foray into electric two-wheelers with six different models.
“We feel that there is a huge market in the three-wheeler platform,“ said Rajan Handa, MD at OK Play India.He said the company is also tying up with some non-banking financial companies to make easy financing available to customers. The products are priced around `1.2 lakh.
The company , which currently has seven plants, plans to add three more plants to augment its presence here.It reported a net profit of `57.5 lakh in the nine months ended December compared to a loss of `6.1 crore a year ago while its shares have gained nearly 27% in the last one year.
As per the India's Society of Manufacturers of Electrical Vehicles, EVs constitute less than 1% of the total vehicle sales in India but has potential to grow over 5% in a few years. “We need to look at how it is accepted in terms of cost and mainte nance,“ said G Chokkalingam, founder, Equinomics Research & Advisory.
Those looking to play the theme could look at OK Play India and Goldstone Infratech, analysts said.
Goldstone Infratech
CMP: Rs 79.75; P|E: 50.62; Year-toDate Returns: 198.7%
The Hyderabad-based manufacturer of silicon rubber insulators is making inroads in the EV space in partnership with Warren Buffetbacked Chinese electrical vehicle manufacturer BYD. In November, the company received its first order of six electric buses from the Brihanmumbai Electric Supply & Transport Undertaking (BEST). In February , it bagged an order for 25 electric buses from the Himachal Road Transport Corporation.
“Our parallel target is electric trucks and electric three-wheelers,“ said PK Srivastava, head of e-bus division at Goldstone Infratech. “We plan to make 200-300 buses per year, which means the turnover will go to `500 crore from this.“
He expects the share of this segment to go up to 50% in a year from 10% currently . The company is also in the process of setting up a plant in Hyderabad in partnership with BYD, said Srivastava. In the nine months ended December, Goldstone reported a profit of `3.2 crore on a revenue of `71 crore. Its shares have surged 357% in the last one year.
OK Play India
CMP: Rs 143.50; P|E: 57.3; Year-toDate Returns: 17.9%
Plastics auto component company OK Play India ventured into the EV industry in 2015 with launch of electric rickshaw e-Raaja and now makes a range of electric vehicles.More recently , the company made its foray into electric two-wheelers with six different models.
“We feel that there is a huge market in the three-wheeler platform,“ said Rajan Handa, MD at OK Play India.He said the company is also tying up with some non-banking financial companies to make easy financing available to customers. The products are priced around `1.2 lakh.
The company , which currently has seven plants, plans to add three more plants to augment its presence here.It reported a net profit of `57.5 lakh in the nine months ended December compared to a loss of `6.1 crore a year ago while its shares have gained nearly 27% in the last one year.
