Opportunity Size in Electric Vehicle Space
The shift towards renewable energy and the government’s Net-zero emissions target for 2070 and the government plan to set up one charging station for every 25 km on both sides of expressways and highways present substantial growth opportunities in the Electric vehicles (EVs) segment. India will require more than 63,000 charging stations and cumulative investments of Rs 269 billion (bn) for setting them up over the next five years and 270,000 charging stations, entailing a total investment of Rs 1 trillion (tn) by 2032.
As a result, the demand for Electric vehicle charging stations has increased dramatically, leading to the emergence of several EV charging companies in India.
As Peter Lynch rightly said; During the Gold Rush, most would-be miners lost money, but people who sold them picks, shovels, tents and blue-jeans (Levi Strauss) made a nice profit.
Similarly, many investors are placing their bets on Electric vehicle (EV) original equipment manufacturers (OEMs) to capitalize on the anticipated bull run in the burgeoning EV market. However, this article focuses on companies supplying the essential tools and resources—the metaphorical picks, shovels, and blue jeans—necessary for the success of the EV industry.
Listed companies that are into infrastructure for Electric vehicle in India
Servotech Power Systems:
| Market Cap | ₹ 2,392 Cr. |
| Current Price | ₹ 107 |
| Stock P/E | 211 |
| ROCE | 11.3 % |
| ROE | 10.8 % |
| Sales | ₹ 306 Cr. |
| Debt to equity | 0.63 |
| Return over 3years | 289 % |
Business Overview:
Servotech is in the business of high-end solar products and Electric vehicle chargers. It develops ultra fast DC chargers and Home AC chargers, and has installed over 5600 EV chargers in collaboration with oil marketing companies.
20+ years of expertise in manufacturing power electronics products. Prominent manufacturer of EV chargers, solar products, LEDs, batteries, medical devices
Financial Snapshot
The sales for FY24 of ₹306 crore have been growing at a 3 year CAGR of 52% while Net profit have zoomed in to 11 crore at a 3 year CAGR of 118%. OPM has been sustainable in 6% range. Future growth could be expected because of Margin expansion and growing sales.
Marquee clientele:
comprising of BPCL, IOCL, HPCL, Nayara Energy and others
Key Growth Triggers
- Servotech Bags 120 Cr order of 1800 DC Fast EV chargers from BPCL – Servotech will manufacture, supply, install, and deploy 1800 DC EV chargers across the nation, particularly at BPCL petrol pumps in major cities, as part of the BPCL E-drive Project
- Entered into a strategic partnership with EMCOR Power Solutions to revolutionize EV charging infrastructure in India.
- Developed Solar-Powered EV Charging Carport with NSEFI, Hauz Khas, Delhi
- Signed two MOUs with IIT Roorkee to develop State-of-the-art rectifier units for CCS2 Chargers & onboard EV Chargers for 2, 3 & 4 wheelers.
- Partnered with Electra EV and filed a patent for India’s first fast-charging interoperability solution between GB/T and CCS2 protocols.
- Servotech files two patents for energy management technologies -Servotech filed two patents for innovative energy management technologies in order to facilitate grid service optimization through a battery energy storage system and to effectively channel renewable energy into BESS for maximum value , enabling the transition to sustainable energy
Exicom Tele-Systems Ltd – India’s Leading EV Charger & Telecom Power Solutions Provider
| Market Cap | ₹ 5,377 Cr. |
| Current Price | ₹ 445 |
| Stock P/E | 84.1 |
| ROCE | 19.80% |
| ROE | 13.40% |
| Profit after tax | ₹ 63.9 Cr. |
| Sales | ₹ 1020 Cr. |
| Debt to equity | 0.06 |
| Price to book value | 7.45 |
Exicom is Market leader in EV Residential Chargers with 60% market share and 25% market share in public chargers. Till Mar’24 65000+ chargers deployed across 400+ cities in India.
Leading Electric Vehicles (EV) Charger solutions players in India with market leadership in residential and public charging segments. Smart charging systems with innovative technology for residential, business, public charging, and heavy-duty vehicle charging use India.
Financial Snapshot
The sales for FY24 of ₹1020 crore have been growing at a 3 year CAGR of 26% while Net profit have zoomed in to 64 crore at a 3 year CAGR of 162%. OPM has been expanding from 8% to 11% range. Future growth could be expected because of Margin expansion and growing sales.
Earlier this year in March 2024, Exicom made a stellar debut listing at Rs 264 apiece, a massive premium of 85%. Its IPO offer price was Rs 142.
At present, the stock trades at Rs 445 per share.
TATA POWER
| Market Cap | ₹ 1,38,694 Cr. |
| Current Price | ₹ 434 |
| Stock P/E | 40.2 |
| ROCE | 11.1 % |
| ROE | 11.3 % |
| Profit after tax | ₹ 3,450 Cr. |
| Sales | ₹ 61,449 Cr. |
| Debt to equity | 1.66 |
| Return over 3years | 51.6 % |
| Price to book value | 4.29 |
Along with betting big on green energy, Tata Power is aggressively investing in EV charging stations. The company has market leadership in public charging segment with ~55% share and ~85% share in home charger installations.
The company has tied up with Tata Motors to provide home charger solutions to every EV owner. It has already installed nearly 5,450 Public EV charging points across 530 cities and town and 86,086 E4W Home Chargers
Tata Power has plans to install EV chargers all over India, with an expected 100,000 charging stations by 2025. Tata Power EZ Charge has a target of more than 10000 Public and 200000 Home chargers by FY28.
Besides this, the company also provides fleet charging facilities along with captive charging for public transportation and buses Deployed 858 E-bus charging points at their depots.
Financial Snapshot
The sales for FY24 of ₹61449 crore have been growing at a 3 year CAGR of 23% while Net profit have zoomed in to 4280 crore at a 3 year CAGR of 44%. OPM has been in 17%-20% range. Future growth could be expected because of Margin expansion and growing sales.
ABB INDIA
| Market Cap | ₹ 1,73,961 Cr. |
| Current Price | ₹ 8209 |
| Stock P/E | 119 |
| ROCE | 30.70% |
| ROE | 22.90% |
| Profit after tax | ₹ 1,463 Cr. |
| Sales | ₹ 11,116 Cr. |
| Debt to equity | 0.01 |
| Return over 3years | 65.70% |
| Price to book value | 29.3 |
ABB is a leading name in electric mobility, they have over 14,000 DC fast chargers installed across more than 80 countries. Abb India installed its first public DC fast charger in New Delhi in collaboration with EV Motors in India. The Terra54 CJG charging station caters to multiple charging protocols of CCS2, CHAdeMO and AC Type 2.
As per the company officials, the EV charging station will let the passengers charge their cars in 40-50 minutes from 0 to 80 percent. Additionally, all ABB chargers come with connected services, so customers can easily connect their chargers to different software systems like back-offices, payment platforms, Energy Management Online Solutions and smart remote diagnostics, therefore leading to significant uptime value.
Oil Marketing Companies (IOC, BPCL, and HPCL)
The government announced ₹800 Cr. as subsidy to the three Oil Marketing Companies (OMCs) like Indian Oil, Bharat Petroleum, and HPCL for the establishment of 7,432 electric vehicle public charging stations. Further, 148 EV Charging Stations were sanctioned to other entities under this scheme.
- State-run IOC is pivoting its business in some way and slowly moving away from petrol pumps into energy outlets that can offer EV charging points and battery swapping.
- In the coming two years, IOC will have EV charging facility at more than 10,000 fuel stations. Meanwhile, state-run BPCL plans to transform 7,000 conventional outlets into energy stations to support electric mobility in the next few years.
- Recently, BPCL announced that it launched 19 EV fast-charging stations at 110 fuel stations along 15 highways in Karnataka, Kerala, and Tamil Nadu.
-
Meanwhile, several companies including Hero MotoCorp, Bharat Electronics, among others have collaborated with HPCL to set up EV charging stations.
About Author
