Best EV Stocks in November 2024 – Based on 5Y CAGR

India has set an ambitious target for electric vehicle (EV) adoption by 2030, aiming for EVs to account for 30% of private car sales, 70% of commercial vehicle sales, 40% of bus sales, and 80% of two- and three-wheeler sales. This could bring around 80 million EVs onto Indian roads by 2030. As part of the ‘Make in India’ initiative, the country also aims to boost domestic EV production. With advancing technology and strong government support, the EV market is expected to see major growth.

In this article, we’ll explore some of the best EV stocks in India for November 2024 based on their 5-year CAGR.

Best EV Sector Stocks in November 2024 – 5 yr CAGR Basis

Note: The top electric vehicle stocks list provided here is selected from the Nifty 500 universe and sorted as per the 5-yr CAGR as of November 08, 2024. 

Overview of Best EV Sector Stocks in India in November 2024

• HBL Power Systems Limited

HBL Power Systems Limited, originally known as Sab Nife Power Systems, is a major battery and power systems company headquartered in Hyderabad, India. It is a top supplier of specialised batteries and power electronics in the Indian market, with a strong global footprint. Over time, the company has grown its product range to include uninterruptible power supplies (UPS), sealed lead acid (SLA) batteries, and nickel-cadmium batteries. It also exports products through its 100% Export-Oriented Unit (EOU). 

HBL Power Systems share price has shown strong growth, with a CAGR of 101.2% over the last 5 years. For the quarter ended June 2024, the company’s revenue increased to ₹511.23 crore from ₹604.28 crore in the preceding quarter. 

Key metrics: 

• EPS (Earning Per Share): ₹10.44
• ROE (Return on Equity): 24.02%
• Apar Industries Ltd

Apar was established in 1958 by Mr. Dharmsinh D. Desai and has since become a leading company in India with a strong international presence. Originally focused on producing power transmission cables, Apar has expanded into three main areas: Conductors, Transformer and Specialty Oils (TSO), and Power/Telecom Cables. The company has been instrumental in supporting India’s electrification efforts.  

Apar Industries share price has given a CAGR of 76.3% over the last 5 years. For the quarter ended September 2024, the company’s revenue increased to ₹4,315.58 crore from ₹3,746.54 crore in the preceding quarter. 

Key metrics: 

• EPS: ₹203.54
• ROE: 20.95%
• Linde India Limited

Linde India Limited, majority-owned by the UK-based BOC Group with a 75% stake, primarily manufactures industrial and medical gases. The company also designs and builds air separation plants, including both cryogenic and non-cryogenic types. 

Linde India share price has given a CAGR of 69.81% over the last 5 years. For the quarter ended September 2024, the company’s revenue increased to ₹634.42 crore from ₹653.23 crore in the preceding quarter. 

Key metrics: 

• EPS: ₹51.29
• ROE: 12.74%
• Solar Industries

Solar Industries is a leading manufacturer in India of bulk and cartridge explosives, detonators, detonating cords, and related components, serving the mining, infrastructure, and construction industries. The company also produces high-energy explosives, delivery systems, ammunition, and pyrotechnic fuses for the defense sector. 

Solar Industries share price has given a CAGR of 57.34% over the last 5 years. For the quarter ended June 2024, the company’s revenue increased to ₹1,044.59 crore from ₹1,001.67 crore in the preceding quarter. 

Key metrics: 

• EPS: ₹72.17
• ROE: 27.83%
• Olectra Greentech Limited

Founded in 2000, Olectra Greentech Limited focuses on manufacturing composite polymer insulators and electric buses. The company is headquartered in Hyderabad. 

Olectra Greentech share price has given a CAGR of 53.02% over the last 5 years. For the quarter ended September 2024, the company’s revenue increased to ₹514.07 crore from ₹304.18 crore in the preceding quarter. 

Key metrics: 

• EPS: ₹12.54
• ROE: 10.45%

Overview of the Electric Vehicles Sector

The electric vehicle (EV) sector in India is expanding rapidly, fueled by government incentives, growing environmental awareness, and technology advancements. Programs like the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme aim to increase EV adoption, making transportation greener and more innovative.

Globally, the EV market was valued at about $255.54 billion in 2023 and is expected to grow to nearly $2,108.80 billion by 2033, with a strong annual growth rate of 23.42% from 2024 to 2033. In India, reports from NITI Aayog and the Rocky Mountain Institute (RMI) estimate that the EV finance sector will reach around ₹3.7 lakh crore (or $50 billion) by 2030.

Conclusion

India’s electric vehicle (EV) sector is growing fast. However, this sector changes quickly due to fast tech advancements and shifting regulations, so it’s essential to evaluate the company’s fundamentals, including its financial health, production capacity, and plans for future growth. It’s also wise to maintain diversification in your portfolio. While EV stocks offer great potential, spreading investments across different sectors helps reduce risk and ensures a balanced investment strategy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.