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This EV maker that wants to compete with Tatas, is a multibagger with 26x returns

Aug 24, 2022, 15:38 IST
BCCL
  • Gensol Engineering has witnessed growing investor interest as the stock skyrocketed 2600% in the last one year.
  • Gensol has said that its electric car will have a range of 100-200 kms with speed of 80 kmph and a three-hour charging time and will be priced at ₹5-6 lakh.
  • Presently, Tata Tigor is the only cheap EV car in the market that costs ₹12 lakh followed by Tata Nexon at over ₹14 lakh.
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Ahmedabad-based renewable energy solutions provider Gensol Engineering is now the talk of town as it has entered the electric vehicle ecosystem with the stated aim of manufacturing an electric car locally and to be sold at ₹6 lakh.

Part of the Gensol group of companies, which offers EPC and solar advisory services, Gensol Engineering is engaged in the buying and leasing of EV cars to ride-hailing companies and earning lease rental income. Now, it has announced its intention to get into manufacturing electric three- and four-wheelers.

Gensol will start manufacturing three wheeled EVs from October 2022 and will commence compact cars in FY24.

The stock has witnessed growing investor interest with the shares skyrocketing over 2,600% in the last one year. To put that in perspective – an investor who invested ₹10,000 in the stock a year back would have made a huge profit of ₹2.77 lakh today.
Gensol Engineering % change
Last 1-month 61%
Last 6-month530%
Year to date1,137%
Last 1-year2,649%

Gensol Engineering is riding the EV wave. The interest in EV stocks among investors is growing and companies connected to the EV ecosystem have been picked up by traders. Olectra Greentech, Tata Power and Motherson Sumi are among EV company stocks that have nearly doubled or more than doubled investors' money in over a year.

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Aspiration to build an EV car like WagonR
On Monday, Anmol Singh Jaggi, managing director of Gensol told Moneycontrol that he plans to introduce an electric car for the masses to take on WagonR.

Gensol wants to manufacture an EV car in the entry level segment with a far more reasonable cost at less than ₹6 lakh. Presently, Tata Tigor is the only relatively cheap electric car in the market at ₹12 lakh followed by Tata Nexon at over ₹14 lakh.

“Hatchbacks form 46% of the cars sold in India and the total market size of EV hatchbacks is $9 billion.The Indian EV car segment is set to grow at 105% till 2030 reaching 2 million annual sales volume. We propose to invest in this US-based EV startup with a very positive outlook to serve India's need for affordable and efficient EVs. With the rising fuel prices, our vision is to provide a solution that reduces fuel costs by 5x,” said Jaggi in a press release on July 7.

In July, Gensol Engineering picked up a majority stake in a US-based electric vehicle manufacturing startup to accelerate its plan of delivering a domestically manufactured EV in India. With this deal, Gensol foresees an increment in revenue by ₹500 - ₹600 crore for FY24.

The company plans to set up a manufacturing plant at the Chakan Industrial zone in Pune, Maharashtra that is expected to make electric cars from next year. The plant will have a capacity of 12,000 cars per year in the first phase. It is hiring a team of more than 150 automobile engineers and designers for the plant. Gensol Engineering has a market capitalisation of ₹1,474 crore.

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Analysts at global firm brokerage JP Morgan also came out with a report earlier in August after a visit to the company’s Pune plant.

“The company is positioning itself as the only EV player offering personal mobility EVs at a highly competitive price range of ₹500-600K (v. existing EVs at c.₹1.5 million). Gensol also plans to launch a new facility for the manufacturing of compact cars (expected to commence in FY24) with an expected capacity of 50K cars per annum,” the report said.

Gensol has said that its electric car will have a range of 100-200 kms with speed of 80 kmph and a three-hour charging time and will be priced at ₹5-6 lakh.

The company plans to get into manufacturing of three electric vehicle variants including personal mobility (Brand X-PV), ride hailing (Brand X-Fleet) and cargo vehicles for last mile delivery (Brand X-Cargo).

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