Best EV Stocks For February 2025 Based on 5Y CAGR: JBM Auto, KPIT Tech, M&M and More

The Electric Vehicle (EV) sector in India is currently in the rapid growth phase on the back of government incentives, rising environmental concerns, and technological advancements. The nation is looking to substantially grow EV adoption, and change its transportation landscape towards sustainability and innovation with initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. In this blog, we will explore the best EV stocks for Feb 2025 based on different parameters.

Best EV Stocks For Feb 2025 Based on 5Y CAGR

Note: The stocks mentioned above have been selected and sorted based on 5Y CAGR as of January 23, 2024

Overview of 5 Best EV Stocks Based on 5Y CAGR

JBM Auto Ltd

Incorporated in 1983, JBM Auto Ltd is engaged in the manufacturing and sells sheet metal components, tools, dies & moulds. It is the market leader in e-buses. Recently, JBM Ecolife Mobility Private Limited, a subsidiary of JBM Auto Limited, secured the contracts as a bus operator for Procurement, Operation and Maintenance of 343 Electric Buses for Ahmedabad BRTS, Ahmedabad Municipal Transport Service under Gross Cost Contracting [GCC] and some leading Corporates.

Key Metrics:

• ROE: 15.9%
• ROCE: 14.4%

KPIT Technologies Ltd

KPIT is a global technology company with software solutions that will help mobility leapfrog towards an autonomous, clean, smart and connected future. During Q2 FY25, commenced strategic engagements in the electric powertrain and connected domains for a leading American car manufacturer.

Key Metrics:

• ROE: 31.2%
• ROCE: 38.4%

M&M Ltd 

Mahindra & Mahindra (M&M) Ltd is one of the most diversified automobile companies in India. M&M enjoys market leadership with a market share of 43.6% in the E-3W segment and the company has recently launched two new PV BE 6E and XEV 9E.

Key Metrics:

• ROE: 18.4%
• ROCE: 13.6%

Tata Motors Ltd

Tata Motors Group is a leading global automobile manufacturer, it offers a wide and diverse portfolio of cars, SUVs, trucks, buses and defence vehicles to the world. During Q2 FY25, JLR radically transformed its plant in Halewood, Merseyside in preparation for electric vehicle production.

Key Metrics:

• ROE: 49.4%
• ROCE: 20.1%

Ashok Leyland Ltd

Ashok Leyland is the flagship Company of the Hinduja group, having a long-standing presence in the domestic medium and heavy commercial vehicle (M&HCV) segment. During Q2FY25, the company received a large order of 180 electric trucks in 19- and 55-ton categories. It is also progressing well in creating new centres of excellence for EVh.

Key Metrics:

• ROE: 28.4%
• ROCE: 15.0%

Best EV Stocks For Feb 2025 Based on Net Margin

Note: The stocks mentioned above have been selected and sorted based on net margin as of January 23, 2024

Best EV Stocks For Feb 2025 Based on Debt to Equity

Note: The stocks mentioned above have been selected and sorted based on debt to equity as of January 23, 2024

What are EV Stocks?

EV stocks represent companies that produce or supply electric vehicles, batteries, motors, software, and charging stations. Electric cars not only cut down on fuel expenses but also emit much less pollution. With India’s push for electric mobility, more investors are turning to top EV stocks in the country.

Factors to Consider Before Investing in EV Stock

There are several important factors to consider before investing in electric vehicle (EV) stocks,

1. Market Growth and Demand: Assess the potential expansion of the EV market, taking into consideration government policies, incentives, and the growing demand for eco-friendly transportation. Pay attention to trends in EV adoption and the development of supporting infrastructure, such as charging stations.
2. Company Financials: Review the financial stability of the EV companies you are interested in, including their revenue growth, profitability, debt, and cash flow. A solid financial base can help a company navigate market fluctuations.
3. Technology and Innovation: Look at the company’s commitment to innovation, especially in areas like battery technology, autonomous driving, or EV-related software. Companies leading in technological advancements could have a competitive advantage.
4. Government Regulations and Support: Investigate the regulatory environment for electric vehicles in the country where the company operates. Government incentives, subsidies, and policies aimed at reducing emissions can play a crucial role in boosting EV company profits.

EV Sector in India: An Overview

India’s electric vehicle (EV) market is expected to grow at a compound annual growth rate (CAGR) of 28.52%, reaching a value of US$ 18.319 billion by 2029, up from US$ 5.22 billion in 2024. Furthermore, the Indian EV battery market is predicted to rise from US$ 16.77 billion in 2023 to US$ 27.70 billion by 2028. Leading players in the industry are working to enhance EV charging infrastructure.

For example, Hyundai Motor India is making strides to increase EV accessibility across the country by expanding its ultra-fast charging network, adding 11 new stations in key cities such as Mumbai, Pune, Ahmedabad, Hyderabad, Gurugram, and Bangalore, as well as along major highways.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.