Olectra Greentech Ltd
(Formerly Goldstone Infratech Ltd)
was founded in 1992 in Hyderabad.
Cmp – 211
Market cap – 1060cr
Accmulation zone – Add on all Dips 160-211
T – 1000
TF – 30 to 36 months.
Long term target – 2500-3000+ ( 5 to 6 yrs)
It is a part of the highly diversified Goldstone Group, with major interests in Composite Insulators, Amorphous core-distribution transformers, Data Analysis, IT consulting and Electric Buses.
Goldstone Infratech Ltd is the largest manufacturer and suppliers of Composite Insulators in India. Composite Insulator s are well used across the globe as a significant technology breakthrough.
Company has Joint Venture with BYD of China to manufacture Electric Bus in India.
Background of BYD
BYD was incorporated in the year 1995 to manufacture Batteries for mobiles and other applications.
Company soon realised the future of Batteries and Electric Mobility as future.so it started to develop high class batteries and started R&D for Electric Automobiles. BYD also manufactures fossil
First Electric Vehicle by BYD was first Introduced in 2008 in China .It Now Manufactures over
In 2008 Warren Buffet had picked up stake in BYD and in a decade, today it is almost 8X-10X.
BYD is the Largest Manufacturer of electric vehicles of China
Goldstone & BYD JV is working agressively to capture Electric Bus market share in India.
State Governments are going for tenders for procuring it’s electric Bus requirements.
Why BYD Goldstone ?
Goldstone BYD are offering rates on per KM basis to Government which is very lucrative for State Government and are the lowest in Industry.
Company had Bagged 290 Bus Orders in various Tenders floated by states like Delhi,Gujarat and others.
Its market share in Electric buses is almost 50% which has left Heavy rivals such as Tata Motors and Ashok Leyland Behind.
Charging infrastructure has so far been a major challenge to India’s electric mobility dreams.
Goldstone has a strategic tie-up with BYD for selling electric vehicles in India will start assembling lithium ion battery packs this financial year and start sourcing electric vehicle components locally in India
Olectra Greentech (Goldstone Infra) have already installed some and will further create infrastructure in Bangalore, Hyderabad and Mumbai .
Goldstone will not find it difficult because public transport vehicles are parked at bus depots and state transport departments are allocating space for creating charging infrastructure.
At present approximately 31 BYD buses are operating in India. Goldstone has orders for an additional 165 buses.
Recently company has announced plans to manufacture 5,000 Electric buses per year by 2021 which would be used to serve Indian Markets and for exporting to other South Asian countries.
Goldstone-BYD has recently unveiled its electric feeder bus fully manufactured in India and Five of these electric feeder buses will be exported to Nepal at a cost of Rs 1.2 crore each before buses run on Indian Road.
Huge Opportunity : 5,000 buses * Rs.1 Crore = Rs.5,000 Crs. (Approx)
Why BYD is pushing Electric buses in India?
Chinese government started to give Incentives for Electric vehicle from 2007-2008 to promote use of electric vehicles.
Promotion led high growth in sales of electric vehicles. Now government is slowly withdrawing incentives and schemes which means slow growth.
To maintain growth momentum BYD do not want to miss opportunity in Indian market as Government wants to promote alternate fuel vehicles and is giving incentives at various levels to Promote electric mobility.
This will again bring BYD sales on High growth path.
Why Electric Is future?
We all know that India is huge importer of Crude Oil.These Imports are denting CAD balance and Balance of Payments.As Oil price starts to shoot up India’s Fiscal deficit will become worse.
To cut the import bill and to be less dependent on Imported Fossil fuels government wants to largely support renewables and Electric Mobility.
As Crude Oil rises , so will the import bill and government will be forced to promote Electric Mobility even at larger scale from now to protect hefty import bill.
This would be Win-Win for Country Fiscal deficit , For environment and augment further economic growth by deploying those savings to other meaningful activities.
Since Goldstone has joint Venture with BYD and BYD has a Decade of experience and also mass manufacturing , Goldstone BYD can have a good Competitive and Strategic advantage over Other companies.
Why Bullish On Olectra Greentech?
As electric Mobility is a new industry we can expect stock to get relatively high PE multiple then other Auto Companies.
High Competion in future.
Government Delay in Promoting Electric Mobility for Public Trasportation.
Lack of Incentives.
Low Oil Prices.
Disc – All Views expressed are for Educational & Study purpose only.Consult your financial Advisor before investing.