EV Series - 1. Top 4:- 4 and 2 Wheeler Manufacturers Stocks

Episode 1- EV Series

There are many 4 wheeler and 2 wheeler EV(Electronic Vehicle) manufacturers in india. Lets dive deep into each company.

1. Mahindra Electric

Mahindra Electric is owned by Mahindra & Mahindra, headquartered in Bengaluru in india. Mahindra is the pioneer for EV in the Indian space. Being the first major EV manufacturer it launched Mahindra Reva, its first EV as early as 2001 . They have currently 5 Ev’s in production. It has launched E verito which is used by many cab aggregators .They have a dedicated Manufacturing Plant in Bengaluru of EVs.

Amazon India partnered with Mahindra Electric to help fulfil its commitment towards electric mobility. This is in line with Amazon India's commitment that its fleet of delivery vehicles will include 10,000 electric vehicles by 2025 in India. The Mahindra Treo Zor vehicles have been deployed in seven cities so far with Amazon India's network of Delivery Service Partners.

They have sold 5,418 EVs (27 four wheelers and 5,391 three-wheelers) as against 14,602 EVs (966 four wheelers and 13,636 threewheelers) in the previous year.

Now you might be wondering why is Jay talking about Mahindra & Mahindra in between when discussion is all about Mahindra Electric . This is the reason why.

Mahindra & Mahindra company are considering a Merger of Mahindra Electric into Mahindra & Mahindra company. Source- Annual Report 2020-2021

Now lets focus on financials of Mahindra & Mahindra.

Income Statement.

Source- Screener

Their revenue saw a dip in 2020 due to Covid and also 2021 remain steep as well. But the Net Profit is recovering to previous levels slowly .OPM % in Gradually increasing and recovering.

Balance Sheet.

Total Assets are barely same for last 3 yrs. Their borrowings are continuously increasing which is not good. Capital work in progress is almost 5 % of total assets. Receivables % of Total assests from 8% in 2012 to 3% in 2021 , which is a positive sign.

2. Tata Motors

Tata is Indias biggest automobile manufacturer  It automobile segment ranges from the manufacture of cars, utility vehicles, buses, trucks, and defense vehicles.It has launched 5 EVs in India . Nexon EV, Xpres T-EV,Tigor EV, Nano EV, and the Tiago electric variant. They aim to only manufacture EVs till FY25 along with their subsidiary Jaguar land Rover(JLR).

Ziptron - Ziptron is at the core of Revolutionary Electric Vehicles. It encapsulates all the virtues of Tata Motors’ Electric Vehicle Technology .

Ziptron Comprises of :-

“Tata Motors has a very ambitious goal for EVs. We have planned at least 25 per cent of our total PV sales to come from electric in the medium to long term,” Chandrasekaran said. “We will launch 10 EV models before 2025. They are very aggressive on growth of ev segment of tata motors.Apart from EV’s, Tata has also focussed on setting up charging stations in its efforts to improve the industry infrastructure.

Lets move to financials….

Income Statement.

Sales droped due to again Covid, but sales are showing good recovery in Trailing Twelve Months(TTM). Net Loss is declining which is a good sign. OPM% shows criticality of Automobile Industry. After Covid the ROCE is also showing recovery from -0% in 2020 to 6% in 2021.

Balance Sheet

Their borrowing % as of total liabilities are increasing which is not good sign.Capital Work in progress is also declining continuously which is also not a good sign. Receivables are decreasing which is a good point from balance sheet.

3. Maruti Suzuki

Till writing of this article maruti hasen’t launched any EV in India. They are estimated to release their first EV WagonR on 15 Jan, 2022 according to CarDekho.

Maruti Suzuki believes in collaboration in EV space. It has collaborated with many startups for vision, artificial intelligence, big data analysis, vehicle safety, augmented reality and electric vehicles .Use of data analytics for effective and efficient decision-making .The Company is conducting nationwide field testing of prototype electric vehicles across multiple terrains and climatic conditions. The inputs gathered from the tests will help develop a reliable and suitable electric vehicle for the Indian market.

For batteries of ev the Company has entered into an agreement with an international battery recycling firm and is also exploring domestic market for recyclers with endto-end capabilities, starting from safe collection of batteries to efficient recovery of precious metals. Successful trials have been completed with a domestic recycler.

Lets look at financials then …

Income Statement

Sales again are recovering like anyother automobile company.OPM% is decreasing even after good revenue due to increasing expenses . Net profit is touching the levels of that of 2020 , good sign.

Balance Sheet

Borrowing as that of total liabilities is decreasing,good sign. Net block is decreasing % of total assests from 2012 at 33% fast forward to 2021 at 21%.Receivables are also descreasing.

4 . Hero MotoCorp

Lets talk about Ather energy. Wait what ? how is Hero Motocorp related to Ather energy? And first of all what is ather energy.

Ather energy is a Bengaluru based 2 wheeler EV manufacturer startup . Hero motocorp hold around 38 % stake in this startup. Hence were are talking about Ather energy. It has a valuation of 190 Million Dollars.

It currently makes 2 EV Scooters named Ather 450 Plus and Ather 450X.

Features of these 2 scooters are as follows.

And much more…

Lets discuss the financials now

Income Statement

Again sales are increasing after covid, OPM% in decreasing. Dividend Payout % is increasing even though company is in debt of 584 Cr.

Balance Sheet

Borrowing of company as % of total liabilities is increasing , not a good sign.Receivables % are cyclical due to automobile industry.Capital Work in progress is slightly increasing after Covid due to capex.

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