In a notable development for India’s electric vehicle (EV) sector, HDFC Securities has initiated coverage on Ather Energy, a recently listed electric two-wheeler manufacturer, with a ‘Buy’ rating. The brokerage firm has set a target price of INR 409, indicating a potential upside of nearly 30% from the company’s last closing price of INR 314.90 on May 13.
Ather Energy, which made its stock market debut on May 6, has drawn attention from both retail and institutional investors for its strong fundamentals, innovation-led product portfolio, and positioning in India’s fast-growing EV segment.
Stock Performance and Market Reaction
Following the ‘Buy’ call from HDFC Securities, Ather Energy’s stock experienced a 2.32% intraday jump, trading at INR 320.90 on the Bombay Stock Exchange (BSE). The bullish sentiment led to heightened trading activity, with over 5 lakh shares exchanged by 2:38 PM. At that point, the company’s market capitalisation stood at INR 11,892.64 crore, highlighting growing investor interest in India’s emerging EV story.
Despite the positive momentum on June 16, the stock has had a mixed run since its listing. It has gained 1.24% in the past one month and closed in the green in five of the last seven trading sessions. However, since its listing, the stock has seen a decline of 3.8%, indicating early-stage market volatility as investors evaluate its long-term growth potential.
HDFC Securities’ Bullish Outlook
HDFC Securities’ optimistic outlook on Ather Energy is driven by the company’s strong R&D capabilities, premium product offerings, and strategic market expansion plans. The firm sees robust demand for electric two-wheelers in urban India, aided by rising fuel costs, government subsidies, and increasing environmental consciousness among consumers.
The brokerage expects Ather to maintain a high growth trajectory, supported by expanding production capacity, a widening distribution network, and strong brand recall among millennials and Gen Z buyers.
Ather Energy: Positioned for the Future
Founded in 2013, Ather Energy has rapidly emerged as a key player in India’s electric mobility space. Known for its smart and connected scooters like the Ather 450X, the company differentiates itself through advanced features, fast-charging technology, and superior customer service. The startup has also invested heavily in developing its charging infrastructure (Ather Grid), a move that enhances customer convenience and promotes EV adoption.
With India’s EV market expected to grow exponentially in the next five years, Ather Energy is well-positioned to benefit from increasing demand and favorable policies under the FAME II and state-level EV incentives.
Conclusion
The ‘Buy’ recommendation by HDFC Securities and a price target of INR 409 have added momentum to Ather Energy’s stock, reflecting strong investor confidence in the company’s future. While the stock has seen initial volatility since listing, its fundamentals, innovation-driven strategy, and leadership in the electric two-wheeler space make it a compelling long-term investment opportunity.
As the EV revolution accelerates in India, Ather Energy remains a stock to watch for both growth-focused and sustainability-driven investors.
Leave a comment