EV Stock jumps 35% in 2 trading days after partnership with Reliance industries 

Electric Bus manufacturer Olectra Greentech’s shares appreciated to the tune of 35% from ₹ 406.30 to 551.70 apiece in the past two days, as the company unveiled a hydrogen bus in partnership with Reliance Industries (NS: RELI ). This bus is a carbon-free alternative to traditional public transportation.

The company’s shares were trading at ₹ 528.45 apiece, up 10.11% at 11:45 AM amid high volumes on Monday and a whopping 80,31,305 shares had changed hands by that time.

Olectra Greentech (NS: OLEC ) is a subsidiary of Megha Engineering and Infrastructures Ltd (MEIL) and is a pioneer in the bus manufacturing space in India. In addition, it is India’s largest silicone rubber/composite insulator manufacturer for power transmission and distribution networks.

Its initiative to accelerate hydrogen-powered buses will help the Indian Government to achieve its carbon-free hydrogen emissions and contribute to the nation’s environmentally sustainable energy security.

The newly unveiled bus, with Reliance Industries as Olectra’s technology partner, is a 12-metre low-floor bus with a customisable seating capacity of between 32 to 49 seats for passengers + one driver seat. It travels for up to 400 km with a single fill of hydrogen and generates only water as tailpipe emissions. This is the main USP (Unique Selling Proposition) for phasing out old diesel and petrol systems and replacing them with these buses.

The bus manufacturer’s consolidated total income for the quarter that ended on December 31, 2022, came in at ₹ 257.56, indicating an increase of 22.76% as compared to the corresponding quarter a year ago. It reported a consolidated total income of ₹ 209.80 crores for the quarter that ended on December 31, 2021.

The company posted a 21.02% in its consolidated net profit at ₹ 15.30 crores for the quarter that ended on December 31, 2022, against ₹ 1264.33 crores reported in the corresponding quarter last year.

Olectra Greentech is a small-cap company with a market capitalization of ₹ 3,939 crores. It has an ideal debt-to-equity ratio of 0.10, but a low return on equity of 4.66%. Its shares were trading at a price-to-earnings ratio of 69.93, which is significantly higher than the industry P/E of 39.01, indicating that the stock might be overvalued as compared to its peers. This could also be an indication that investors are willing to pay a higher share price for the company’s future earnings.

Written by Simran Bafna

The post EV Stock jumps 35% in 2 trading days after partnership with Reliance industries appeared first on Trade Brains.

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