EV stock to buy now for an potential upside of 32%; Recommended by Nomura

Synopis:
Ather Energy Ltd stock is in focus after institutional firms predicted strong growth and highlighted upside potential.

The shares of this small-cap company, which is engaged in the design, development, and in-house manufacturing of e-scooters, are in focus after HSBC and Nomura gave target price recommendations for the stock.

Ather Energy Ltd  is a large-cap company with a market capitalization of Rs.12,671 crores. It opened at Rs.354.80 per equity share from its previous day’s closing price Rs.345.45 and made an intraday high of Rs.358.05 per equity share.

Buy Rating By HSBC and Nomura

Nomura and HSBC have given target prices of Rs.458 and Rs.450 per share for Ather Energy. The CMP of the company is Rs.345.80 with an upside of 32.44 percent and 30.13 percent, respectively. Both firms are positive about the company’s future because they believe the demand for electric two-wheelers in India is growing quickly.

Also Read: Infra stock jumps 5% after company’s net profit increases 94% YoY

Why?

Ather Energy is gaining attention after signing a Memorandum of Understanding (MoU) with the Commerce Ministry to support clean mobility and boost advanced manufacturing. This partnership is part of the “Build in Bharat” initiative, where Ather will mentor deep-tech startups and provide infrastructure support to new players in the electric vehicle (EV) value chain.

Nomura believes that EV adoption in the 2W segment will grow significantly from 6 percent in FY25 to 19 percent by FY30. They expect traditional petrol-powered vehicles (ICE) to reach peak sales by FY30, especially as new emission norms like BS-VII come into effect.

According to Nomura, the shift to EVs gives companies like Ather Energy Ltd  a fair chance to grow, as the old advantages held by legacy ICE vehicle makers are slowly fading.

HSBC highlighted that Ather is already the fourth-largest EV two-wheeler maker in India, with a 14 percent market share. It praised Ather’s product quality and technological strength, saying that even larger companies will find it tough to compete.

HSBC expects Ather to grow rapidly, predicting a 47 percent revenue CAGR from FY25 to FY28, and believes the company will reach EBITDA breakeven by Q4 FY27. However, it also noted that the company’s success will depend more on its execution than overall industry growth.

About The Company

Ather Energy is a Bengaluru-based electric vehicle company founded in 2013 by IIT Madras graduates Tarun Mehta and Swapnil Jain The company designs, develops, and manufactures smart electric scooters such as the Ather 450X, 450 Plus, and the family-focused Ather Rizta. It also operates Ather Grid, one of India’s largest fast-charging networks for electric two-wheelers, with over 1,000 charging points across more than 80 cities

Backed by investors like Hero MotoCorp, Tiger Global, and NIIF, Ather achieved valuations exceeding $1 billion, earning it unicorn status in 2024 Known for its combination of hardware and software innovation, Ather is ranked among India’s leading EV makers and is well-positioned to grow with a compelling focus on clean and connected mobility.

Written by Sudeep Kumbar

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