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  • Sep 19, 2022 - Top 5 EV Charging Infrastructure Stocks to Add to Your Watchlist

Top 5 EV Charging Infrastructure Stocks to Add to Your Watchlist

Sep 19, 2022

Top 5 EV Charging Infrastructure Stocks to add to Your Watchlist

Editor's Note: The centre has come out with good news for EV infrastructure companies in India.

In a recent conference, held on 15 and 16 September 2022, Union Power Secretary Alok Kumar said that the central government will amend the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II).

At present there is no subsidy for the upstream infrastructure. However, this might soon change. The government is planning to give subsidy for setting up EV charging stations.

The primary focus will be setting up EV charging station on highways, expressways, petrol pumps and in small towns.

Oil marketing companies (OMCs) will be the biggest beneficiaries of the subsidy since they plan to set up EV charging infrastructure on 8 to 10 major national highways by 2025.

At the start of this year, we wrote to you about the top 5 EV charging infrastructure stocks.

Top EV Charging Infra Stocks in India

Company CMP (Rs) YTD Change (%)
Tata Power 234 6%
IOC 70 -6%
BPCL 321 -17%
Reliance Industries 2,505 6%
ABB India 3,123 40%
Source: Equitymaster

The above list is extremely relevant today as these companies stand to benefit the most from the changes happening in the electric vehicle sector.

Continue reading to know more...

India's Top EV Charging Infrastructure Stocks

There is so much hype around electric vehicles (EV) worldwide.

And for good reason.

EV manufacturers are investing a lot of money in producing new models and developing a comprehensive EV portfolio.

The government is also encouraging to shift to EVs with its policies and initiatives.

However, it's highly unlikely that electric vehicles will succeed without proper EV charging infrastructure. Hence EV makers are concentrating on developing EV charging stations across the country.

Here are five companies developing a charging infrastructure network across India.

#1 Tata Power

The first company on our list of EV charging stations is Tata Power.

As India's largest integrated power company, its no surprise that it's on our list.

It offers EV charging solutions across all segments, including home charging, public charging, workplace charging, and captive charging.

The company has partnered with various EV makers such as Tata Motors, TVS, MG Motor India, and Jaguar Land Rover (JLR) India to develop charging infrastructure.

It has also tied up with original equipment manufacturers (OEMs) to deploy all types of chargers at its charging stations.

As of September 2021, Tata Power installed around 5,458 home charging points, 32 e-bus charging stations, 878 EV charging stations in India.

Recently, the company tied up with Lodha Group and Central Railway Mumbai to provide EV charging solutions in Pune and Mumbai.

It has also developed an EV charging app to locate the nearest charging station, get updates on charging, and pay charges online.


#2 Indian Oil Corporation

Second on our list is Indian Oil Corporation, India's largest oil refining & petroleum marketing company.

Indian Oil plans to install EV charging facilities at 10,000 fuel stations in the next three years. It currently has 448 EV charging stations and 30 battery swapping stations across the country.

It has also collaborated with EV makers and power companies such as Hyundai, Mahindra, Ola, NTPC, and Tata Power to set up EV chargers at fuel stations.

The company is evaluating emerging trends in mobility and the EV value chain to identify business opportunities to stay ahead in this transition.

As a part of its 'zero-emission electric mobility mission', it has set up the first hybrid microgrid to charge EVs using solar power, battery storage, and grid power.

The company also collaborated with Sun Mobility and Phinergy of Israel to strengthen its green energy presence and commercialise aluminium air battery technology in India.

Moreover, it has been exploring Solid Oxide Fuel Cell (SOFC) to generate clean, reliable, and affordable green energy for EV charging.


#3 Bharat Petroleum Corporation

Next on our list is Bharat Petroleum Corporation, an integrated refining and marketing company.

It's India's second-largest oil marketing company and third-largest refining company with a network of 19,000 outlets.

Currently, the company runs 44 EV charging stations and plans to add another 1,000 outlets by October 2022.

It plans to transform 7,000 conventional outlets into energy stations to support electric mobility in the next few years.

These stations will provide multiple fuel options, including EV charging, compressed natural gas (CNG), petrol, diesel, flexi fuels, and hydrogen.

The company plans to invest Rs 50 bn in the next five years through an inorganic route to expand its renewable power portfolio to 1,000 megawatts (MW) from its existing capacity of 45 MW.


#4 Reliance Industries

Reliance Industries, the largest private-sector corporation in India, is fourth on our list.

The company is already an established player in the petroleum and refinery business and is the second-largest refinery in the country.

To set up EV charging stations in the country, Reliance has tied up with British Petroleum under the name Jio-BP.

In the first phase of the plan, Jio-BP will set up EV charging stations across the Delhi-NCR region to charge a minimum of 30 cars in each station.

The first EV charging station has already been established in Mumbai with multiple fuelling choices.

It has partnered with BluSmart, an EV ride-hailing platform, to set up an EV charging network with the latest technology in India.

Jio-BP has also tied up with Mahindra Group to provide charging solutions to EVs made by the latter using mobility-as-a-service (MaaS) and battery-as-a-service (BaaS) models.

Currently, it operates a network of 1,400 petrol pumps in the country. It plans to expand this to 5,500 pumps in the next five years with multiple fueling options, including EV charging.


#5 ABB India

Last on our list is ABB India, one of the largest integrated power equipment manufacturers.

It primarily has four business divisions - electrification, robotics and discrete automation, motion, and process automation.

The electrification business provides products, charging solutions and services in the power industry.

It deploys high-quality AC chargers and fast-charging DC chargers to offer charging solutions.

ABB also recently developed and launched the fastest EV charger globally, Terra 360. It has the capability to deliver a range of 100 km with 3 minutes of charging.

The company is all set to launch Terra 360 in different countries. It won't be long before this technology will be accessible in India.


Should you invest in EV charging infrastructure stocks?

After lithium-ion batteries that are at the heart of electric vehicles, charging points are the next most important thing.

In the next five years, the EV charging stations are estimated to be a US$29.7 bn business, growing at a CAGR of 40% between 2020-2027.

The government has been encouraging the adoption of EVs in the country and has planned to set up 70,000 EV charging stations across the country in the next few years.

Many companies, listed and unlisted, are already knee-deep into establishing EV charging infrastructure in India.

So which EV stock should you invest in?

Before you zero in on any, we recommend you watch the below video to study the results of our latest research project.

You can also check out the playlist on electric vehicles Equitymaster's YouTube channel

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Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Ayesha Shetty

Ayesha Shetty is a financial writer with the StockSelect team at Equitymaster. An engineer by qualification, she uses her analytical skills to decode the latest developments in financial markets. This reflects in her well-researched and insightful articles. When she is not busy separating financial fact from fiction, she can be found reading about new trends in technology and international politics.

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