Top 5 EV Stocks in India to Add to Your Watchlist

#2 Hero MotoCorp

Next on the list is Hero MotoCorp.

Hero MotoCorp, the world's largest manufacturer of motorcycles and scooters for 24 consecutive years, is steadily advancing its transition toward electric mobility.

The company is manufacturing advanced battery packs and Vida electric scooters at its state-of-the-art facility in Sri City, Andhra Pradesh, strengthening its presence in the EV segment.

The company's partnership with Ather Energy further strengthens its presence in the premium electric segment while expanding access to one of India's largest EV charging networks.

Over the past five years, profit has expanded even faster at a CAGR of 66.5%. As far as return ratios are concerned, the ROE has averaged 23.73%.

Going forward, Hero MotoCorp is focusing on scaling its EV business. The company expects a ramp-up in capacity by FY27, supported by investments in manufacturing and distribution.

In the EV space:

• The company is close to completing EV capacity expansion, which will increase output by around 50% compared to the previous quarter.
• It has already scaled EV capacity from 15,000 to 25,000 units and plans to further double this capacity before the end of the year, with another round of expansion underway in the following quarters.

For more details, see the HERO MOTOCORP company fact sheet and quarterly results.

#3 Eicher Motors

Next on the list is Eicher Motors.

A leading Indian automotive company and the listed parent of Royal Enfield, Eicher operates in the mid-size motorcycle segment, ranging from 250cc to 750cc.

The company operates through more than 2,000 retail touchpoints in India and has expanded its global presence across over 65 countries. In the Indian mid-size motorcycle segment, Royal Enfield commands a dominant market share.

Alongside motorcycles, Eicher Motors has a significant presence in commercial vehicles through its 54.4% JV with Volvo Group, VE Commercial Vehicles (VECV).

VECV manufactures Eicher-branded trucks and buses, Volvo trucks, and powertrains, and is the market leader in the light and medium-duty truck segment.

Through VECV, Eicher has made notable strides in the electric bus space with its Eicher Skyline Pro-E range, which includes both city and intercity variants, with the 50,000th bus rolled out from its Baggad plant being a Skyline Pro-E electric bus.

Also, VECV partnered with LeafyBus to deploy 35 of its 13.5-metre electric sleeper buses on high-traffic corridors like Delhi-Dehradun and Delhi-Lucknow Machine Maker, marking Eicher's push to take electric mobility beyond city limits and into India's long-haul intercity segment.

Talking about its financials, over the past three years, Eicher Motor' net profit has grown at compounded annual growth rate (CAGR) of five years to 171%. The company has the best return ratios in the industry, with an average ROE of 22.17%.

Moving forward, Eicher Motors plans to expand annual production capacity to 2 m units from 1.6 m units through a brownfield expansion over FY28, with planned investments of around Rs 9.6 bn.

In India, to support rising demand, the company has been expanding and debottlenecking its manufacturing facilities.

For more details, see the EICHER MOTORS company fact sheet and quarterly results.

#4 Himadri Speciality Chemical

Next on the list is Himadri Speciality Chemical.

Himadri Speciality Chemical is a carbon-based chemical manufacturer with a growing portfolio in advanced materials for lithium-ion batteries, speciality black and performance chemicals. It supplies end-markets like aluminium, rubber, textiles and increasingly, energy storage, and EVs.

Lithium-ion batteries are the dominant battery technology used in electric vehicles (EVs). Anode materials play a pivotal role in the functioning of a Lithium-Ion Battery.

Himadri is the first commercial LFP producer outside China, using an integrated supply chain that gives it a competitive edge in the global EV transition.

Over the past three years, Himadri Speciality Chemical has delivered strong financial growth, with net profit recording a compounded annual growth rate (CAGR) of five years to 74.1%. Its ROE has averaged 18.1%.

The company's cathode active material vision is to produce 200,000 MTPA of Lithium Iron Phosphate (LFP) Cathode Active Material, catering to 100 GWh of Li-ion Battery, in a phased manner over the next 5-6 years.

Going ahead, the management is optimistic about the future on the back of lithium-ion battery demand growing 33% annually, and battery energy storage demand is also poised to grow multifold.

For more details, see the HIMADRI SPECIALITY CHEMICAL company fact sheet and quarterly results.

#5 Olectra Greentech

Last on the list is the Olectra Greentech.

Olectra Greentech is India's largest pure electric bus manufacturer with manufacturing facilities in Hyderabad, India.

After leading in the commercial run of electric buses, the company is expanding its product line in the e-mobility segment for electric trucks and electric tippers.

The company has strong partnerships, an ongoing expansion, and a first-mover advantage in the e-bus segment. Additionally, its insulator business provides an added layer of diversification.

Talking about its financials, over the past five years, Olectra Greentech's profit has grown at a CAGR of 589.6%. As far as return ratios are concerned, the ROE has averaged 13.3%.

Going forward, Olectra Greentech's long-term growth is fuelled by India's emphasis on electric public transportation, an increase in state transport tenders, and the expanding adoption of electric buses.

Olectra Greentech is undertaking a capacity expansion to 5,000 vehicles per annum, which is expected to support the scale-up of operations and the timely execution of its growing order book.

For more details, see the OLECTRA GREENTECH company fact sheet and quarterly results.

Conclusion

India's electric vehicle (EV) story is gaining momentum.

As per the India Brand Equity Foundation, the sector is growing fast due to government support, rising environmental awareness, better charging infrastructure, and improvements in technology.

Policies like the FAME scheme and the Make in India initiative are speeding up domestic EV manufacturing across the entire value chain.

Looking ahead, India has set bold goals for 2030. The aim is for EVs to make up 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two and three-wheelers. This could mean nearly 80 m EVs on Indian roads in the coming years.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy investing.

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...