The electric vehicle (EV) revolution is picking up speed, and Tesla is front and center in this exciting shift. But it’s not just about Tesla—the entire EV ecosystem plays a big role. From battery makers to software companies, the EV boom is opening up opportunities across many industries. But what about the lesser-known players—the stocks that aren’t obvious but stand to benefit from this transformation?
Tesla’s India Buzz and the Broader EV Transformation
In the coming months, discussions about Tesla entering India are likely to gain momentum. While geopolitical factors like import duty negotiations could add some drama, the focus remains on the transformative impact of the EV sector.
Whenever a sector undergoes a significant shift, certain companies naturally emerge as prominent players—like automakers and auto ancillary firms in the EV space. However, there are also companies that may not immediately seem connected to EVs but stand to benefit from the industry’s growth. These unexpected players, while not directly part of the EV sector, could play a pivotal role in shaping its ecosystem.
The NSE has created an index to track the EV ecosystem comprehensively. Within this index, several companies specialize in embedded software tailored for EVs. Additionally, some auto ancillary companies, well-prepared for this shift, have successfully transitioned to support the EV industry. Others have launched operations dedicated exclusively to the EV sector. Source: Economic Times
Look at all the companies in the new Nifty EV & New Age Auto Index.
Nifty EV & New Age Auto Index Stocks
| Company | Market Cap in crore (as of 28-11-24) | CMP | PE Ratio | ROCE % | 3 Yrs Return % |
| Tata Motors Ltd. | 289068 | 785 | 8.63 | 20.1 | 19 |
| Amara Raja Energy & Mobility Ltd. | 23263 | 1271 | 24.0 | 18.7 | 28 |
| Maruti Suzuki India Ltd. | 344868 | 10969 | 24.6 | 21.8 | 16 |
| KPIT Tecnologies Ltd. | 38731 | 1413 | 53.3 | 38.4 | 47 |
| Varroc Engineering Ltd. | 7956 | 521 | 15.1 | 17.5 | 21 |
| Reliance Industries Ltd. | 1738910 | 1285 | 25.6 | 9.61 | 5 |
| Bharat Forge Ltd. | 62319 | 1338 | 62.8 | 12.9 | 24 |
| Hero Motocorp Ltd. | 96600 | 4830 | 23.4 | 29.1 | 25 |
| TVS Motor Copmany Ltd. | 115744 | 2436 | 61.4 | 14.7 | 53 |
| Samvardhana Motherson International Ltd. | 113777 | 162 | 30.0 | 13.7 | 12 |
| Ashok Leyland Ltd. | 69257 | 232 | 26.4 | 15.0 | 25 |
| Motherson Sumi Wiring Ltd. | 28445 | 64.3 | 43.1 | 48.0 | – |
| Tata Elxsi Ltd. | 42028 | 6748 | 51.4 | 42.7 | 6 |
| CG Power & Industrial Solutions Ltd. | 115519 | 756 | 129 | 46.6 | 73 |
| Sona BLW Precision Forgings Ltd. | 41406 | 666 | 72.1 | 24.0 | -3 |
| UNO Minda Ltd. | 59561 | 1037 | 66 | 19.9 | 34 |
| Mahindra & Mahindra Ltd. | 363117 | 2920 | 30.5 | 13.6 | 52 |
| Eicher Motors Ltd. | 132177 | 4822 | 31.0 | 31.0 | 27 |
| L & T Technology Services Ltd | 55418 | 5236 | 44.1 | 33.4 | 1 |
| Bosch Ltd. | 102461 | 34,740 | 51.2 | 20.6 | 29 |
| Olectra Greentech Ltd. | 12973 | 1581 | 116 | 14.8 | 25.8 |
| JBM Auto Ltd. | 18312 | 1549 | 97.8 | 14.4 | 64 |
| Rattanindia Enterprises Ltd. | 9010 | 65.2 | 12.6 | 2.89 | 13 |
The EV revolution isn’t just about carmakers or batteries; it’s about a comprehensive ecosystem involving various industries. Beyond automakers, several companies are transforming themselves to cater to the growing EV demand. These include firms that supply specialty chemicals for battery production and others developing components essential to the EV ecosystem.
Here’s a list of 8 lesser-known stocks that may not immediately come to mind when one thinks of EVs.
Jupiter Wagons Ltd.
Jupiter Wagons Ltd. is a leading Indian manufacturer of railway freight wagons, passenger coaches, and wagon components. Headquartered in Kolkata, the company caters to both Indian Railways and private sector clients. Jupiter Wagons plays a crucial role in India’s railway infrastructure development with a focus on innovation and quality.
| Company | Market Cap in crore (as of 28-11-24) | CMP | PE Ratio | ROCE % | 3 Yrs Return % |
| Jupiter Wagons Ltd. | 20856 | 491 | 57.0 | 31.7 | 144 |
Tata Technologies Ltd.
Tata Technologies is a global leader in product engineering and digital solutions. They serve major players in automotive, aerospace, and industrial machinery sectors. With a focus on innovation and digital transformation, they help clients design, engineer, and manufacture better products. Their expertise lies in areas like engineering services, product development, and digital manufacturing solutions.
| Company | Market Cap in crore (as of 28-11-24) | CMP | PE Ratio | ROCE % | 3 Yrs Return % |
| Tata Technologies Ltd. | 38143 | 940 | 59.0 | 28.3 | – |
Tube Investments of India Ltd.
Tube Investments of India Ltd. (TI) is a leading Indian engineering conglomerate. It specializes in manufacturing a wide range of products like bicycles, precision steel tubes, automotive components, and industrial chains. TI is known for its strong focus on quality, innovation, and customer satisfaction. It is a part of the prestigious Murugappa Group.
| Company | Market Cap in crore (as of 28-11-24) | CMP | PE Ratio | ROCE % | 3 Yrs Return % |
| Tube Investments of India Ltd. | 69882 | 3613 | 87.0 | 26.3 | 29 |
Schaeffler India Ltd.
Schaeffler India Ltd. is a leading manufacturer of high-precision bearings and automotive components. Part of the global Schaeffler Group, it supplies crucial components for engines, transmissions, and chassis systems. With a focus on innovation and sustainability, it caters to both the automotive and industrial sectors. Its products are designed to enhance efficiency and reduce emissions.
| Company | Market Cap in crore (as of 28-11-24) | CMP | PE Ratio | ROCE % | 3 Yrs Return % |
| Schaeffler India Ltd. | 55450 | 3548 | 58.4 | 26.7 | 32 |
Gujarat Fluorochemicals Ltd.
Gujarat Fluorochemicals Ltd. (GFL) is a leading Indian manufacturer of fluorochemicals and refrigerants. It caters to various industries, such as automotive, electronics, healthcare, and construction. GFL is known for its innovative products and commitment to sustainability. It has a strong global presence and is a major player in the fluorochemicals market.
| Company | Market Cap in crore (as of 28-11-24) | CMP | PE Ratio | ROCE % | 3 Yrs Return % |
| Gujarat Fluorochemicals Ltd. | 43164 | 3929 | 105 | 9.76 | 25 |
Exide Industries Ltd.
Exide Industries Ltd. is a leading Indian manufacturer of storage batteries. It caters to a wide range of applications, including the automotive, industrial, and telecom sectors. Exide is known for its high-quality products and strong distribution network. It is committed to providing reliable and efficient power solutions to its customers.
| Company | Market Cap in crore (as of 28-11-24) | CMP | PE Ratio | ROCE % | 3 Yrs Return % |
| Exide Industries Ltd. | 38,777 | 456 | 46.4 | 10.2 | 40 |
Tata Chemicals Ltd.
Tata Chemicals Ltd. is a leading global manufacturer of chemicals and fertilizers. It produces a wide range of products, including soda ash, inorganic chemicals, and specialty chemicals. Focusing on sustainability and innovation, it contributes to various industries like agriculture, consumer goods, and industrial manufacturing. Its products are used in everyday life, from food to pharmaceuticals.
| Company | Market Cap in crore (as of 28-11-24) | CMP | PE Ratio | ROCE % | 3 Yrs Return % |
| Tata Chemicals Ltd. | 28106 | 1103 | 45.8 | 7.81 | 8 |
Himadri Speciality Chemical Ltd.
Himadri Speciality Chemical Ltd. is a leading Indian manufacturer of specialty chemicals and carbon materials. It caters to diverse industries like steel, aluminum, plastics, automotive, and construction. With a focus on innovation and sustainability, it produces a wide range of products, including coal tar pitch, carbon black, naphthalene, and specialty oils. Himadri is committed to providing high-quality solutions to its customers.
| Company | Market Cap in crore (as of 28-11-24) | CMP | PE Ratio | ROCE % | 3 Yrs Return % |
| Himadri Speciality Chemical Ltd. | 25884 | 524 | 53.8 | 18.8 | 128 |
Key Points on the EV Ecosystem and Emerging Opportunities
Batteries
The battery is the most critical component of an EV. Companies like Ola Electric are investing in advanced batteries, such as their Bharat 4680 battery, to power the future of EVs.
The focus goes deeper into the supply chain—companies are working on providing the essential materials required to manufacture EV batteries. This includes firms supplying specialty chemicals and other critical inputs that form the foundation of the battery ecosystem.
The EV Supply Chain
The EV supply chain spans from the most unexpected players (e.g., specialty chemical providers) to the more obvious ones like Ola Electric and automakers actively involved in EV production. This interconnected chain highlights opportunities across industries, not just within traditional auto or EV firms. Source: Economic Times
Why the EV Boom is Bigger Than Tesla
While Tesla has captured global attention, it’s important to note that the EV ecosystem extends far beyond one company. Governments are setting ambitious EV adoption targets, and traditional automakers are rapidly expanding their EV offerings. This surge creates opportunities in industries that may not immediately come to mind but are critical to EV adoption.
Is the Ecosystem Ready for Tesla?
Tesla’s vision has always been ambitious, from building cutting-edge EVs to scaling up its Gigafactories. But even Tesla can’t do it alone. Its success depends on a robust ecosystem of suppliers and partners.
The readiness of this ecosystem depends on several factors:
- Infrastructure: Charging networks need to expand rapidly to match growing EV demand.
- Supply Chain Resilience: From rare earth elements to semiconductors, supply chains must adapt to the increased demand for EV components.
- Policy Support: Governments worldwide must invest in incentives, infrastructure, and research to support EV adoption.
What Should Investors Watch For?
For those looking to capitalize on the EV boom, here are some key trends to monitor:
- Battery Innovations: Breakthroughs in battery technology could shift market dynamics, benefiting companies that adapt quickly.
- Global Expansion: Companies with international operations are better positioned to benefit from the worldwide EV push.
- Regulatory Changes: Policies promoting EV adoption will directly impact companies across the ecosystem.
The Road Ahead
The EV revolution is reshaping industries far beyond the automotive sector. While Tesla remains a driving force, the ecosystem supporting EVs is just as critical—and often overlooked.
The EV ecosystem is evolving to support this shift as the world moves toward electrification. Whether or not it’s entirely ready for Tesla, one thing is clear: the opportunities in this space are immense, and the players who adapt quickly will drive the future.
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FAQ
What is the EV wave?
The EV wave refers to the rapid growth and adoption of electric vehicles (EVs). Companies across the supply chain are benefiting from this trend, including battery manufacturers, charging infrastructure providers, and auto component suppliers.
Why are these 8 stocks poised to benefit?
These stocks have been selected based on their strong positions in the EV supply chain, innovative technologies, and potential for significant growth as the EV market expands.
What are the risks associated with investing in these stocks?
Investing in any stock involves risk. These stocks are particularly susceptible to EV market fluctuations, government policy changes, and competition from established and emerging players.
How can I research these stocks further?
To conduct thorough research, consider analyzing the companies’ financial performance, competitive landscape, and future growth prospects. Consult with a financial advisor or conduct independent research to make informed investment decisions.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
