'Buy' Ather Energy Maintains HDFC Securities On Strong Growth Outlook; Stock Remains Top Pick

The success and acceptance of its more affordable scooter, Rizta, coupled with an expanding dealer network and increased marketing efforts, has enabled Ather Energy to gain market share, especially in states where it had a small presence earlier..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Institutional Equities.Ather Energy Ltd. is in a strong volume growth phase and is accelerating its efforts towards profitability. The current growth phase is aided by dealership expansion, as it is looking to reach 700 stores by the end of FY26, from 351 stores as of FY25-end. We expect another growth phase to start from late FY27 or FY28, which would then be led by portfolio expansion, with the expected addition of lower priced models on the new EL platform. On the profitability front, we expect benefits from operating leverage, move to lower cost LFP battery, move to the lower cost EL platform, better vertical integration at the new plant in Sambhajinagar, and better monetization of its software and accessories to help aid the company’s journey towards a positive Ebitda, and beyond. We upgrade the financials, with positive Ebitda now expected in FY28. Considering another inflection point from FY28, we factor that in the multiple and, hence, raise the EV/sales multiple from 5.0x to 6.0x, which is a premium to the listed peer set. We value the company at 6x Sep-27 EV/sales for a target price of Rs 748 and maintain Buy, while also maintaining the company as our top pick..Click on the attachment to read the full report:.Motilal Oswal Settles SEBI Proceedings On Record-Keeping Lapse By Partner Om Securities For Rs 34.85 Lakh.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Ather Energy Maintains HDFC Securities On Strong Growth Outlook; Stock Remains Top Pick

Considering another inflection point from FY28, the brokerage factors that in the multiple and, hence, raise the EV/sales multiple from 5.0x to 6.0x, which is a premium to the listed peer set.

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