Free Reports

Here's Why This Smallcap Will Beat the Big Autos in the EV Race

Jul 16, 2019

Richa Agarwal, Research analyst

Yesterday, I wrote to you about the slowdown in auto sector.

India saw the worst quarter in two decades for auto sales volumes.

But this in an incomplete picture.

You see, this data is mostly about internal combustion engined (ICE) vehicle sales.

Here is the stat we must not ignore amid the auto sector blues.

Last Time: Watch the Re-Airing of our 'One Stock Crorepati' Mega Summit

Sales Volumes of Electric Vehicles (EVs) in India

Sales Volumes of Electric Vehicles (EVs) in India

The sales volumes of electric vehicles (EVs) in India are up 1,255% over a year (See Chart above).

It's a data point those cynical about electric vehicle disruption will find hard to ignore.

Yes, the base is still quite low. Electric vehicles form less than 3% of the total domestic auto sales volumes at present.

Stock Alert: Our Top 5 Stocks to Buy Now

No wonder then that the big auto companies are still dragging their feet when it comes to this revolution in automobile technology.

But if the growth in EV sales continues surging at this rate (the recently announced Government incentives could give a further boost)...then a full-blown disruption for large auto players awaits.

But are there any businesses that stand to benefit from this disruption?

My latest smallcap stock pick is one. (My Hidden Treasure subscribers can access the detailed report here.)

This company is the first in India to introduce a product that offers higher power, efficiency, and reliability, in compact size to EVs.

It has already been exporting to global electric automakers for quite some time now.

The rise of EVs in India is a great incremental opportunity for this smallcap firm. That's because it will give a handsome boost to the value supplied per vehicle.

As for its clients, I can hardly think of a name that is not associated with the firm. From domestic players like Bajaj Auto, M&M, Hero, Honda, TVS, to global players like BMW and Ford, the list is long.

And the rise of electric vehicles is just a slice of the opportunity pie.

With an innovation led business model, the company is a great play on the rise of automation in vehicles. It powers the technology behind driverless cars.

--- Advertisement ---
Urgent: 'One Stock Crorepati' mega summit will re-air at 1 pm

Yesterday, we went LIVE with our 'One Stock Crorepati' MEGA Summit at 5 pm which thousands of people attended to learn about the 'Crorepati Stock' opportunity…

Now, we have decided to give our readers one last chance to learn about the 'Crorepati Stock' opportunity.

That is why we are re-airing the 'One Stock Crorepati' Summit at 1 PM today.

Here are the things you will get from the summit:

Details of a 'crorepati stock' that could potentially make you a lasting fortune
A '5-minute blueprint' to finding out potential multibaggers in the market
A Breakdown and analysis of how some people became Crorepatis from a single stock
And a lot more!

Remember: This event is could be a gamechanger for you and can save you years of frustration and failure to pick the right multibagger stock.

So, don't miss it for any reason.

Claim your free seat right away before we end the free registrations

Further, with change in emission norms from Bharat Stage 4 to Bharat Stage 6, some products it supplies to automakers could more than double.

To sum up, while the conventional auto sector faces existential crisis, this smallcap firm is all set to ride the trend of rise in new age vehicles.

Now, I obviously cannot reveal the name of this company on a public platform. But the reason I am telling you this is that sometimes disruptions can be an opportunity to make extraordinary profits.

And to find those, you need to tune off the mainstream media (which by the way is crying hoarse over the monthly auto sales numbers) and instead focus on finding where the next big opportunity is.

A final word on EVs...

EVs are expected to comprise 25% of the total vehicles in India over next 10 years. I believe the real beneficiaries of this trend will be in the smallcap space. I am keeping an eye out for more such opportunities (which I will share with my Hidden Treasure members).

And you should too...

Warm regards,

Richa Agarwal
Richa Agarwal
Editor and Research Analyst, Hidden Treasure

PS: EVs aren't the only trend I'm keeping an eye on. When the markets are down, like now...small caps tend to get beaten down worse than the rest. But that also means that the profit potential when they rebound, is much better. Like the 3 stocks I now think are headed for a rebound... you can access the report containing full details here.

Recent Articles

Britannia's Biskoot Dunks in the Economic Slowdown August 23, 2019
Biscuit makers are finding difficult to sell a 5-rupee packet. Should you buy their stocks?
This is Every Investor's Dream: A Growth Stock at Value Prices August 22, 2019
Owning the right stock can create massive wealth. I want to tell you about just such a stock today.
Stock Alert: Our Top 5 Stocks to Buy Now August 21, 2019
We have identified 5 high-quality stocks with huge wealth building potential, wherein we increased exposure to 100%.
Why I Broke My Own Allocation Rule for this South India Based Smallcap Company... August 20, 2019
You won't read or hear about this smallcap company that could be next Page Industries in the newspapers or financial channels. Here's how you can act on this opportunity.

Equitymaster requests your view! Post a comment on "Here's Why This Smallcap Will Beat the Big Autos in the EV Race". Click here!

1 Responses to "Here's Why This Smallcap Will Beat the Big Autos in the EV Race"

Rajeev Arora

Jul 16, 2019

A lot of infrastructure needs to be in place before it becomes a reality. There is no charging infrastructure in place in public places or homes unlike some of the other countries. The electric supply fails often which is a negative for EVs growth.

Like (1)
Equitymaster requests your view! Post a comment on "Here's Why This Smallcap Will Beat the Big Autos in the EV Race". Click here!