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HDFC Securities Initiates Coverage On Ather With ‘Buy’ Rating
- HDFC Securities has initiated coverage on Ather Energy, an electric two-wheeler startup, with a 'Buy' rating.
- The brokerage firm has set a target price of INR 409 for Ather Energy, representing a 30% increase from its last closing price.
- Following the rating, Ather Energy's stock rose by 2.32% and traded at INR 320.90 on the BSE.
- Ather Energy's market capitalization reached INR 11,892.64 Cr with over 5 Lakh shares exchanged.
- The stock has seen fluctuations since its listing on May 6, showing both gains and losses.
- HDFC Securities expects Ather Energy to outgrow the industry and gain market share with its expanding product portfolio and network.
- The brokerage firm forecasts Ather to achieve EBITDA break-even by FY30 and improve profitability on various factors.
- Ather is focusing on transitioning to LFP battery and introducing new scooter platforms to enhance gross margins.
- Ather aims to expand its portfolio and dealer network to scale up in the market.
- Ather narrowed its net loss in the fourth quarter of FY25 and saw a 29% growth in operating revenue.
- The company is shifting focus to northern India with the introduction of a more affordable scooter, 'Rizta'.
- The new scooter may help Ather capture markets in states like Gujarat and Maharashtra.
- Ather is exploring rare earth-free motors to reduce costs and dependence on rare earth metals.
- Founded in 2013, Ather has raised over $630 Mn in funding and competes with players like Ola Electric and Bajaj Auto.
- The rating by HDFC Securities points towards positive growth prospects for Ather Energy in the electric two-wheeler market.
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