On 19th November, the Ministry of Heavy Industries reinstated the subsidy for electric three-wheelers under the PM E-Drive scheme. After the allocated budget for FY25 ran out, the government approved additional funds till FY26, benefiting around 3,20,000 advanced battery technology commercial e-three-wheelers. This government move is likely to boost the stocks of some key companies.
Let’s explore the 3 companies that could benefit from this scheme.
Atul Auto Limited: A Favorite Brand in Rural Markets
Company Overview: Established in 1992 in Gujarat, Atul Auto Limited mainly manufactures three-wheelers for rural markets. The company has a portfolio of over 45 models under the Shakti and Smart brands, targeting both passenger and cargo segments.
Financial Highlights:
- Market Cap: ₹1,548.52 crore
- Share Price: ₹558 (up by 4.97%)
- Sales Growth: Sold 646 units in October 2024, up from 503 units in September 2024.
- Revenue Growth: Q2 FY25 revenue increased by 18.5% to ₹181.65 crore from ₹153.17 crore in Q2 FY24.
- Profit: Increased from ₹4.57 crore to ₹7.13 crore.
Atul Auto’s increasing sales and strong operational performance make it a strong contender under this scheme.
Bajaj Auto Limited: A Global Leader
Company Overview: Established in 1945, Bajaj Auto Limited is India’s largest three-wheeler manufacturer and the world’s third-largest motorcycle manufacturer. With a business model based on innovation and strong R&D, the company earns a significant portion of its revenue from international markets.
Financial Highlights:
- Market Cap: ₹2,70,216 crore
- Share Price: ₹9,676 (up by 1.69%)
- Sales Growth: Sold 6,299 units in October 2024, up from 5,000 units in September 2024.
- Revenue Growth: Q2 FY25 revenue increased by 22% to ₹13,247 crore from ₹10,838 crore in Q2 FY24.
- Profit: Increased from ₹1,385 crore to ₹2,020 crore.
Bajaj Auto’s extensive market reach and consistently growing sales make it one of the most beneficial companies under this scheme.
Also Read: Tata Group Stock Upside, Partners with Suzuki for EV Development in 2024
Tube Investments of India: A Leader in New Technology
Company Overview: Tube Investments of India Limited is an engineering and manufacturing company that produces products for the automotive, railway, and construction industries. The company has three main verticals: Engineering, Bicycles, and Metal Formed Products. Recently, it has also entered the electric vehicle sector.
Financial Highlights:
- Market Cap: ₹68,485 crore
- Share Price: ₹3,540 (up by 3.07%)
- Sales Growth: Sold 632 units in October 2024, up from 599 units in September 2024.
- Revenue Growth: Q2 FY25 revenue increased by 14.37% to ₹4,925 crore from ₹4,306 crore in Q2 FY24.
- Profit: Increased from ₹299 crore to ₹346 crore.
Tube Investments’ growing sales and profitability under its Montra Electric brand make it a strong contender under this scheme.
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Conclusion
With the increased subsidy under the PM E-Drive scheme, companies like Atul Auto, Bajaj Auto, and Tube Investments are poised to reap significant benefits. With improved sales and revenue, their stocks have the potential to deliver robust returns to investors.