Olectra Greentech
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Olectra Greentech's management has expressed strong optimism regarding the company's growth trajectory, particularly in the electric vehicle (EV) segment, driven by a robust order book exceeding 10,000 electric buses and strategic expansion into electric trucks. The new manufacturing facility in Hyderabad, with an initial capacity of 5,000 EVs per year, is a critical catalyst for scaling production to meet anticipated demand. Vista's financial outlook reflects this optimism, projecting revenue, EBITDA, and PAT to grow at CAGRs of 41%, 40%, and 50% respectively through FY26, supported by favorable government policies and increasing market demand. However, challenges such as intense competition and potential supply chain disruptions remain pertinent. The commercial vehicle industry is experiencing a sunrise phase, with improving pricing power and stable margins, which aligns with Olectra's growth potential. Over the next 12-24 months, key opportunities include expanding into the electric truck market and leveraging government procurement programs, while watchpoints include execution risks in scaling production and reliance on government contracts for demand
Why We Like This Stock
- Strong order book of over 10,000 electric buses provides substantial revenue visibility
- New manufacturing facility in Hyderabad enhances production capacity and scalability
- Strategic diversification into electric trucks taps into captive demand from parent company MEIL
Things To Watch Out For
- Intense competition in the EV market may pressure margins and market share
- Potential supply chain disruptions could hinder production ramp-up
- Reliance on government procurement for e-bus demand poses execution risks
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,154 | 1,802 | 2,312 | 2,611 | 3,170 |
| Profit Before Tax (Cr.) | 106 | 190 | 246 | 234 | 298 |
| PBT Margin | 9.2% | 10.5% | 1064.0% | 9.0% | 9.4% |
| Net Profit (Cr.) | 80 | 137 | 182 | 173 | 220 |
| Earnings Per Share | 9.6 | 16.7 | 22.2 | 21.1 | 26.8 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
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Olectra Greentech Limited manufactures and sells electric buses and trucks in India. It operates in two segments, Composite Polymer Insulators and E-Vehicle. The company offers electric tippers. It also provides 1200KV, 330-420KV, 220-245KV, 110-132KV, 52-77KV, 33-36KV, 22-28KV, and 10-15KV composite polymer insulators for transmission and distribution; and tonne, bracket tube, and stay arm insulators for railways. It serves state and central government bodies, and power generation and distribution corporations; private power generation companies; and multinational infrastructure companies. The company was formerly known as Goldstone Infratech Limited and changed its name to Olectra Greentech Limited in July 2018. Olectra Greentech Limited was incorporated in 2000 and is headquartered in Hyderabad, India.