Top 5 EV Companies in India by Growth

A decade ago, it was unimaginable to drive a car without fuel. Today, there are over 1.3 million (m) cars on Indian roads that run on electricity.

With increasing awareness of harmful emissions of non-renewable energy sources, the demand for clean energy sources is increasing, and the electrification of transport has taken the top priority.

The demand for electric vehicles (EVs) is on the rise, and the EV industry in India is expected to grow at a rapid pace in the next five years.

Surely, you must be curious about the future of EVs in India...

In the latest union budget 2023, the government extended the subsidy for lithium-ion cells, reducing the cost of production for EV makers.

Apart from this, several initiatives were announced, giving this budding sector the push that it needs.

So today, we dive into the top 5 companies leading the charge in India's electric vehicle market. From their ambitious plans to their impressive growth in sales and profits over the past five years, these companies are setting the bar high for a sustainable and eco-friendly future.

Please note, we have shortlisted the top EV stocks in India by growth using Equitymaster's Indian stock screener.

#1 JBM Auto

Not Tata Motors or Maruti, the first company on the list is surprisingly an auto components manufacturer JBM Auto.

The company is engaged in the business of manufacturing and selling sheet metal components, tools, dies, and moulds.

With a presence spanning two decades, JBM Auto has a reputed clientele, including big names like Maruti Suzuki, Mahindra and Mahindra, and Eicher Motors.

The company has also ventured into EV bus manufacturing in 2018 and is setting up EV charging stations across the country.

So far, the company has manufactured and delivered over 1,000 electric buses and installed 116 fast chargers.

Currently, its electric buses are operational in 12 states. It plans to enter new markets such as J&K, Ladakh, Haryana, Himachal Pradesh, Chandigarh, and Punjab with its newly released models.

JBM Auto has invested around Rs 8 billion (bn) in various EV projects. It plans to spend another Rs 2 bn per annum for the next three years to expand its manufacturing capacity from 1,500 buses to 6,500 buses per annum.

As of March 2022, the company's revenue from EV buses was Rs 7 bn, and the company plans to increase it to Rs 10 bn by the end of the financial year 2023. This goal is attainable with an order book of 1,066 buses (as of March 2022) and its expansion into more markets.

At the Auto Expo 2023, the company launched several new EV buses, including the JBM Galaxy. With this launch, it entered the luxury coach market dominated by foreign players. This opens up a whole new market for the company and conforms with the government's 'Make in India' initiative.

Coming to the financials, the company's revenue has grown at a compound annual growth rate (CAGR) of 15.1% in the last five years due to a ramp-up in tooling and EV bus segment revenue. The net profit also grew at a CAGR of 18.2% due to its high-margin tooling business.

As a result, its return on equity (RoE) has improved from 6.6% to 17.4%, and its return on capital employed (RoCE) from 13.9% to 19.1% in 2022.

Due to a heavy capex, the debt-to-equity ratio has gone up from 0.3x to 0.5x in the financial year 2022. However, its long-term agreements and repeat business from its customers ensure steady cash flows.

JBM Auto Financial Snapshot (2018-2022)

Particulars (Rs m)	FY18	FY19	FY20	FY21	FY22
Total Revenue	15,896	22,319	19,621	19,940	32,140
Growth		40.4%	-12.1%	1.6%	61.2%
Operating Profit	2,037	2,576	2,302	1,972	3,332
Operating Profit Margin	12.9%	11.7%	11.8%	9.9%	10.4%
Net Profit	677	962	690	493	1,564
Net Profit Margin	4.3%	4.4%	3.5%	2.5%	4.9%

Source: Equitymaster

'To know more about JBM Auto, checkout its factsheet and latest quarterly results.

#2 Olectra Greentech

Second on the list is Olectra Greentech, the largest pure electric bus manufacturing company.

It is a pioneer in electric bus manufacturing and has a leading market share of 35% as of March 2022.

The company also forayed into three-wheeler electric autos and electric trucks.

At present, it has a manufacturing plant in Hyderabad, manufacturing 150 buses per month. The company has invested Rs 8 bn in building a new manufacturing plant with a capacity to produce 10,000 buses per annum.

Its technological partnership with BYD China, which has the largest fleet of 100% electric buses, has helped Olectra expand its product portfolio.

The company is all set to launch India's first electric tipper in March 2023, targeting the mining sector logistics. With rising fuel costs, this electric truck will be a game changer in helping mining companies reduce their operational costs.

Olectra has a healthy order book of 5,428 electric buses as of June 2022.

With the EV bus market experiencing a higher penetration than other vehicle segments, Olectra's prospects look good.

In the last five years, the company's revenue has grown at a CAGR of 29.3%, driven by higher volumes. The net profit also grew by 31.8% CAGR during the same period.

Despite a heavy capex, the company's debt-to-equity stood at 0.1x with a healthy interest coverage ratio of 6.6x at the end of the financial year 2022.

Increasing profitability has also led to improvement in return ratios. Its RoE and RoCE for the financial year 2022 stood at 4.5% and 7.4%, respectively. The RoE and RoCE a year ago were 1.1% and 2.5%, respectively.

Olectra Greentech Financial Snapshot (2018-2022)

Particulars (Rs m)	FY18	FY19	FY20	FY21	FY22
Total Revenue	1,661	1,850	2,249	2,929	6,010
Growth		11.4%	21.6%	30.2%	105.2%
Operating Profit	139	-152	244	202	832
Operating Profit Margin	8.8%	-8.9%	12.2%	7.2%	14%
Net Profit	89	-158	135	81	354
Net Profit Margin	5.6%	-9.3%	6.7%	2.9%	6%

Source: Equitymaster

'To know more about Olectra Greentech, checkout its factsheet and latest quarterly results.

#3 Sona BLW Precision Forgings

Third on the list is Sona BLW Precision Forgings (Sona Comstar).

The company designs, manufactures, and supplies engineered automotive systems and components.

Its products include differential assemblies, gears, conventional and micro-hybrid motors, and EV traction motors.

The company also develops mechanical and electrical hardware systems and application software solutions.

Although the company manufactures its products across all vehicle categories, it has recently increased its focus on EVs.

The company is increasing its EV product portfolio across personal and commercial vehicles. It also announced a capex of Rs 95 bn to be spent over the next two years to expand its EV business.

Sona Comstar is one of the few companies that can design high-power-density EV systems. It also manufactures motors for hybrid passenger vehicles, enabling fuel savings and EV traction motors for electric vehicles.

This has led to several deal wins, including one from a European passenger vehicle maker to supply final drive differential assemblies for their upcoming EV models. It also received 41 EV programs across 25 different customers by the end of December 2022.

At present, the EV segment is contributing 29% of the revenues. The company plans to increase this to 50% in the next two years by launching new products and penetrating into new geographies.

In the last five years, Sona Comstar's revenue has grown by a CAGR of 28% on the back of high orders. The net profit also grew by CAGR of 36.5%.

At the end of 2022, the company was debt-free. However, with a huge capex for the next few years, debt levels are expected to go up, but not significantly, as the company has a high-interest coverage ratio of 24.7x.

Its latest RoE and RoCE stand at 18.1% and 22.1%, respectively.

Sona BLW Precision Forgings Financial Snapshot (2018-2022)

Particulars (Rs m)	FY18	FY19	FY20	FY21	FY22
Total Revenue	6,259	8,152	10,438	15,686	21,507
Growth		30.2%	28%	50.3%	37.1%
Operating Profit	1,904	3,127	4,743	4,271	5,724
Operating Profit Margin	30.5%	38.5%	45.7%	27.3%	26.9%
Net Profit	764	1,730	3,603	2,152	3,615
Net Profit Margin	12.3%	21.3%	34.7%	13.7%	17%

Source: Equitymaster

To know more about Sona Comstar, checkout its factsheet and latest quarterly results.

#4 Exide Industries

Next on the list is Exide Industries.

The company is engaged in manufacturing storage batteries for the automotive, industrial, and submarine sectors.

With over 75 years of experience, the company leads the battery market in India. It caters to all top original equipment manufacturers (OEM), including Tata Motors, Maruti, and Bajaj.

Apart from a strong domestic presence, it has an international presence in the USA, Canada, and Gulf Corporation Council (GCC) countries.

In 2018, the company forayed into lithium-ion batteries and started catering to the EV market. By the financial year 2021, it started manufacturing cells in India, which it previously sourced from abroad.

As an established player in the battery market, the foray into EV batteries has allowed the company to grow in the booming segment.

At present, it has nine manufacturing plants in India with a production capacity of 57 million (m) units of automotive power and five bn units of industrial power. It plans to increase its capacity by setting up a lithium-ion battery cell facility with a capex of Rs 40 bn over the next three years.

The company was hit by poor demand in the automobile sector and saw muted growth in revenue and profit in the last five years.

However, it reported a 23.3% year-on-year (YoY) growth in revenue in the financial year 2022 on the back of strong volumes.

Being a debt-free company with good cashflows, it has an advantage over its peers.

Exide Industries Financial Snapshot (2018-2022)

Particulars (Rs m)	FY18	FY19	FY20	FY21	FY22
Total Revenue	126,278	147,926	145,689	104,219	128,513
Growth		17.1%	-1.5%	-28.5%	23.3%
Operating Profit	13,350	16,380	13,998	13,657	14,024
Operating Profit Margin	10.7%	11.1%	9.7%	13.2%	11%
Net Profit	6,941	8,474	7,625	7,334	6,943
Net Profit Margin	5.5%	5.8%	5.3%	7.1%	5.4%

Source: Equitymaster

'To know more about Exide Industries, checkout its factsheet and latest quarterly results.

#5 Kabra Extrusiontechnik

Last on this list is Kabra Extrusiontechnik (KET).

With over 40% market share (as of March 2022), it is India's largest manufacturer of plastic extrusion machines.

The company manufactures and installs machines that make plastic pipes and packaging films for its clients.

Its products are used in agriculture, housing, infrastructure, construction, and telecom industries.

In 2021, KET also ventured into manufacturing lithium-ion battery packs via its battery division Battrixx.

The company is positioned to offer a wide range of advanced lithium-ion battery packs with a smart battery management system (BMS).

Currently, the company has a lithium-ion battery manufacturing capacity of 10,000 battery packs per month. It plans to increase the battery capacity to 63,000 in the next 12-18 months.

At present, it has a market share of around 15% in the battery market at the end of December 2022. With a strong presence in the battery business, lithium-ion batteries will further boost its market presence.

In March 2022, Battrixx acquired a 100% stake in Varos Technology, a pioneer in developing IoT (internet of things) tools for EV infrastructure and battery management systems. This further strengthens KET's leadership position in new technologies for EVs and other energy storage applications.

There's more. Battrixx is actively engaged with OEMs and is exploring energy storage systems (ESS) in the two and three-wheeler segments.

All this indicates that the company is all set to grow in the EV industry.

The company's financials also provide comfort. In the last five years, its revenue has grown at a CAGR of 8.8% on the back of high orders. The net profit also grew at a CAGR of 8.6%.

The company's RoE and RoCE stood at 9.2% and 13.4% at the end of the financial year 2022.

Kabra Extrusiontechnik Financial Snapshot (2018-2022)

Particulars (Rs m)	FY18	FY19	FY20	FY21	FY22
Total Revenue	2,676	2,651	2,231	2,791	4,083
Growth		-0.9%	-15.8%	25.1%	46.3%
Operating Profit	282	207	125	411	550
Operating Profit Margin	10.6%	8.4%	5.7%	14.9%	13.5%
Net Profit	201	245	75	246	303
Net Profit Margin	7.6%	10%	3.4%	8.9%	7.5%

Source: Equitymaster

To know more about KET, checkout its factsheet and latest quarterly results.

Snapshot of top EV stocks in India from Equitymaster's Stock Screener

Take a look at the top EV stocks in India along with their financials.

Please note that these parameters can be changed according to your selection criteria.

This will help you identify and eliminate stocks not meeting your requirements and emphasise those stocks well inside the metrics.

Since you are interested in EVs checkout top EV battery makers and what to expect from EV stocks in 2023.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...