Olectra Greentech Ltd’s shares surged over 8% to hit a new high of Rs 1,346.00 on Friday after the company posted strong results for the quarter ended September 2023.
Financial Highlights
In Q2, Olectra Greentech posted a net profit of Rs 18.06 crore, up 38% year-on-year. Revenue from operations jumped 18% to Rs 307.16 crore compared to Rs 216.02 crore in Q2 FY22.
EBITDA margin improved 120 bps to 10.3% from 9.1% in the same quarter last fiscal.
Operational Performance
The company witnessed strong growth in operations with total kilometers operated increasing to 5.08 crore km in Q2FY23, up 30% YoY. The total number of electric buses as on 30th September 2023 stood at 755.
Olectra Greentech is continuously scaling up its electric bus operations across India. During the quarter, the company commenced operations of 150 electric buses for Brihanmumbai Electric Supply and Transport (BEST) in Mumbai.
Growth Outlook
The company has a strong order book of over 1,500 electric buses as on date. This comprises 1,225 electric buses under FAME II scheme, 150 electric buses for BEST, Mumbai and 200 electric buses for Delhi Transport Corporation.
Olectra Greentech is expected to witness strong growth in volumes going ahead, led by healthy order pipeline and increasing adoption of electric vehicles in India.
Valuation & Stock Performance
The company’s shares have surged over 160% in 2023 so far, significantly outperforming the broader markets. The stock is currently trading at a P/E ratio of 137.80.
Among peers, Bajaj Electricals is down 0.83%, Graphite India fell 0.56% while Olectra Greentech jumped 8.17% on Friday.
Ownership Pattern
Promoters held 50.02% stake in the company as of September 2023. FIIs held 8.01% stake, down from 8.76% in the previous quarter. Public shareholding in the company stood at 49.98%.
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Conclusion
Backed by strong Q2 performance, robust order book and favourable industry trends, Olectra Greentech seems well placed to capitalize on the expected strong growth in electric vehicle adoption in India. The company’s surging stock price reflects the positive outlook. Investors can consider adding the stock for long-term gains.