Search
+
    Invest with Confidence. Lead with Insights.
    • Drench in the knowledge with exclusive insights, ePaper & smart market tools with ETPrime.

    The power of balance sheet will finally matter in EVs: 7 auto stocks with upside potential of up to 53%

    Synopsis

    If one looks at reasons for the out-performance of stocks like TVS motors and Tata motors, a large part of it can be attributed to their moving early into EV space. Now let’s go back a couple of years. What dominated the headlines was the XYZ startup focused on EV space has become a unicorn because it has raised US $ 20 million at such and such valuations. Here we need to make a distinction between the total amount raised which will go into operation of the company and the valuations. The total amount which is real business is just Rs 150 crore, though the valuation has crossed more than a US $ one billion dollar. Valuations don't run business, they only get headlines. It is cash which a company will be able to pour into EV business and price wars which are bound to take place in the long term which will decide the final winner.

    Few weeks back a company announced the launch of an EV tractor. The reaction on the street, a 20 percent jump in stock price in a single trading session. The company in question has been in this space for decades but the launch of just one product in the EV space changed the whole perception and re-rated the stock. It was quietly working on the project without making a song and dance about it. It was able to do so because it had a good amount of
    • FONT SIZE
    • SAVE
    • PRINT
    • COMMENT
    ET

    Uh-oh! This is an exclusive story available for selected readers only.

    Worry not. You’re just a step away.

    Why ?

    • Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

    • Stock analysis. Market Research. Industry Trends on 4000+ Stocks

    • Clean experience with
      Minimal Ads
    • Comment & Engage with ET Prime community
    • Exclusive invites to Virtual Events with Industry Leaders
    • A trusted team of Journalists & Analysts who can best filter signal from noise
    • ​Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-​

    The Economic Times