Brokerages are backing Ather Energy with upbeat projections—HSBC sees a nearly 30% upside and highlights the company’s defensible position despite a tough EV landscape. Nomura expects strong gross margin growth as the brand capitalizes on the shift to premium electric two-wheelers
Ather Energy share price surged over 3% on Wednesday after the recently-listed EV maker received ‘Buy’ rating from HSBC and Nomura as the brokerage firms initiated coverage on it. HSBC gave a target price of Rs 450 for Ather, nearly 30% upside from its last closing price of Rs 348.
“EV penetration remains low, but we think the stock price will be driven by its relative performance, not industry growth,” the brokerage said in its latest report. Calling it a good company in a tough industry, HSBC stated that Ather’s product quality and technology leadership are difficult to replicate even for rivals with deep pockets.
It further believes that Ather’s stock will be driven by its relative performance rather than industry growth in the near term. Any acceleration in e2W penetration should be a significant upside risk to earnings and valuation as Ather is a pure-play e2W stock, the brokerage added.
On the other hand, Nomura stated that the company is riding on electrification and premiumisation. As per the brokerage estimates, quoted by NDTV Profit, Ather’s gross margin will increase from 16.6% in Q4 FY25 to 28% by FY28F.
Ather Energy-DPIIT Pact
The Department for Promotion of Industry and Internal Trade (DPIIT) has inked an initial pact with Ather Energy with an aim to provide new opportunities for start-ups in the EV and manufacturing space.
The MoU will focus on providing strategic mentorship for deep-tech startups, infrastructure support for startups in the EV value chain.
"Through this partnership with Ather Energy, we aim to catalyse the development of an enabling environment where startups can contribute meaningfully to EV manufacturing, battery innovation, and clean energy solutions," DPIIT Joint Secretary Sanjiv Singh said.
Founded in 2013 out of the IIT Madras incubator, Ather has grown into a key homegrown electric scooter manufacturer in India. It operates in a competitive space alongside major players like Ola Electric, TVS Motor, Bajaj Auto, Hero MotoCorp, and Honda.
