scorecardresearchWorld Environment Day: Olectra Greentech stock hits new 52-week high; up

World Environment Day: Olectra Greentech stock hits new 52-week high; up 109% in less than 4 months

Updated: 05 Jun 2023, 01:00 PM IST
TL;DR.

Olectra Greentech, part of the MEIL Group, is a small-cap stock with a market cap of 6,525 crore. The company is primarily engaged in manufacturing of electric buses and composite polymer insulators.

For the March quarter, the company reported a strong performance, with its net profit growing 55% to  <span class='webrupee'>₹</span>25 crore from  <span class='webrupee'>₹</span>18 crore in the same period last year.

For the March quarter, the company reported a strong performance, with its net profit growing 55% to 25 crore from 18 crore in the same period last year.

India is making notable progress in transitioning from combustion engine-based vehicles to electric vehicles (EVs), as evidenced by the recent surge in EV sales during the March quarter and the significant order wins in the space.

This transition marks a significant step forward in India's journey towards reducing emissions, promoting energy efficiency, and building a greener transportation ecosystem.

The adoption of electric vehicles in the bus segment is rapidly gaining momentum in India. The government's aim is to have 70% of the commercial vehicles and 40% of buses electric by 2030.

Olectra Greentech, the country's largest pure electric bus manufacturer, has witnessed a surge in orders from several state governments for its electric buses.

On March 08, the company's subsidiary, Evey Trans Private Limited, received two Letters of Awards (LOAs) from Telangana State Road Transport Corporation (TSRTC) for 550 electric buses.

Earlier on March 01, the company announced that its first 6x4 heavy-duty electric tipper received India's first homologation certificate from the country's automobile regulatory agencies. 

Further, the company unveiled a hydrogen bus in February in a technical partnership with Reliance, which serves as a carbon-free alternative to conventional public transportation.

In May last year, the company won its biggest-ever order worth 3,675 crore for supplying 2,100 electric buses from Brihanmumbai Electric Supply & Transport (BEST).

Meanwhile, the company is also expanding its product line in the e-mobility segment for 3-wheeler electric autos and electric trucks after leading the commercial run of electric buses.

The company's shares are performing exceptionally well on Dalal Street, supported by strong order wins and strong financial performance. From its low of 384.55 apiece in February 2023, the stock has skyrocketed 109% to trade at the current market price of 803.35.

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Stock Price chart of Olectra Greentech.

In the last three years, the stock has delivered a whopping return of 1296%. During Monday's trade, the stock marked a new 52-week high of 820 apiece, and it is 15% away from its all-time high of 941.20 apiece, marked in December 2021.

For the March ending quarter, the company reported a strong performance, with its net profit growing 55% to 25 crore from 18 crore in the same period last year. The revenue from operations during the quarter surged to 376 crore, an increase of 39% YoY.

Going forward, brokerage firm Geojit Financial Services said the company is poised to reap the benefits of the government's focus on achieving carbon-free emissions.

With its advanced technological capabilities and solid partnerships with state transport undertakings (STUs), the company is expected to experience significant growth in the future, it added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

 

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First Published: 05 Jun 2023, 01:00 PM IST