Table of Contents
Company Overview of Olectra Greentech Ltd
Olectra Greentech Limited, an India-based company, specializes in the production of composite polymer insulators and electric buses. The company is divided into three segments: the Insulator division, the e-bus division and the e-truck division.
Its key products consist of Power Insulators and Electric Buses. The company’s lineup includes the K9 (12-meter), K7 (nine-meter) and K6 (seven-meter) buses, all of which offer customizable seating capacity and are tailored for extended travel distances.
Company Overview of Ashok Leyland Ltd
Ashok Leyland Limited is an Indian company involved in automobile manufacturing. The company’s core operations include manufacturing and selling various commercial vehicles, providing vehicle and housing finance, offering IT services and producing engines for industrial and marine purposes, as well as forging and castings.
The company is divided into segments such as Commercial Vehicles and Financial Services. Its truck lineup comprises haulage, ICV, tippers and tractors, while its bus range includes city, intercity, school, college, staff, stage carrier and tourist buses. Additionally, the company offers light commercial vehicles, small commercial vehicles, goods carriers and passenger vehicles.
The Stock performance of Olectra Greentech
The table below displays the month-by-month stock performance of Olectra Greentech Ltd for the past year.
Month | Return (%) |
Dec-2023 | 12.08 |
Jan-2024 | 29.14 |
Feb-2024 | 12.31 |
Mar-2024 | -4.52 |
Apr-2024 | -9.17 |
May-2024 | 0.98 |
Jun-2024 | -4.08 |
Jul-2024 | -3.97 |
Aug-2024 | -9.0 |
Sep-2024 | 5.78 |
Oct-2024 | -0.33 |
Nov-2024 | -3.1 |
The Stock performance of Ashok Leyland
The table below displays the month-by-month stock performance of Ashok Leyland Ltd for the past year.
Month | Return (%) |
Dec-2023 | -1.14 |
Jan-2024 | -3.62 |
Feb-2024 | -4.12 |
Mar-2024 | 0.15 |
Apr-2024 | 11.36 |
May-2024 | 14.37 |
Jun-2024 | 2.93 |
Jul-2024 | 6.28 |
Aug-2024 | -0.77 |
Sep-2024 | -8.8 |
Oct-2024 | -11.75 |
Nov-2024 | 10.62 |
Fundamental Analysis of Olectra Greentech
Olectra Greentech Ltd is a leading player in the electric vehicle sector, specializing in the design and manufacture of electric buses and other electric mobility solutions. Established with a vision to promote sustainable transportation, the company focuses on innovation and technology to provide environmentally friendly alternatives to conventional vehicles.
The stock trades at ₹1,505.05 with a market capitalization of ₹12,353.56 crore and a minimal dividend yield of 0.03%. It achieved a strong 5-year CAGR of 52.05% and a 1-year return of 24.15%, currently 47.63% below its 52-week high.
- Close Price ( ₹ ): 1505.05
- Market Cap ( Cr ): 12353.56
- Dividend Yield %: 0.03
- Book Value (₹): 916.61
- 1Y Return %: 24.15
- 6M Return %: -14.62
- 1M Return %: 7.40
- 5Y CAGR %: 52.05
- % Away From 52W High: 47.63
- 5Y Avg Net Profit Margin %: 5.33
Fundamental Analysis of Ashok Leyland
ASHOKLEY, or Ashok Leyland, is a prominent Indian automobile manufacturer founded in 1948. Primarily focused on commercial vehicles, the company is known for producing trucks, buses and light commercial vehicles. Ashok Leyland also has a strong presence in various international markets and is recognized for its innovative engineering and sustainable practices.
The stock is priced at ₹219.22 with a market capitalization of ₹64,372.36 crore and a dividend yield of 2.22%. It delivered a 1-year return of 28.95% and a 5-year CAGR of 22.22%, currently 20.72% below its 52-week high.
- Close Price ( ₹ ): 219.22
- Market Cap ( Cr ): 64372.36
- Dividend Yield %: 2.22
- Book Value (₹): 11814.59
- 1Y Return %: 28.95
- 6M Return %: -7.45
- 1M Return %: 0.74
- 5Y CAGR %: 22.22
- % Away From 52W High: 20.72
- 5Y Avg Net Profit Margin %: 1.51
Financial Comparison of Olectra Greentech and Ashok Leyland
The table below shows a financial comparison of Olectra Greentech Ltd and Ashok Leyland Ltd.
Stock | Olectra Greentech | Ashok Leyland | ||||
Financial type | FY 2023 | FY 2024 | TTM | FY 2023 | FY 2024 | TTM |
Total Revenue (₹ Cr) | 1103.46 | 1173.74 | 1495.25 | 42499.33 | 46766.7 | 46910.50 |
EBITDA (₹ Cr) | 153.97 | 185.52 | 235.14 | 5258.65 | 8015.61 | 8773.94 |
PBIT (₹ Cr) | 120.86 | 148.84 | 197.55 | 4358.43 | 7088.32 | 7821.00 |
PBT (₹ Cr) | 89.43 | 105.79 | 150.63 | 2264.93 | 4106.07 | 4342.92 |
Net Income (₹ Cr) | 65.59 | 76.85 | 112.26 | 1238.71 | 2483.52 | 2628.41 |
EPS (₹) | 7.99 | 9.36 | 13.68 | 4.22 | 8.46 | 8.95 |
DPS (₹) | 0.4 | 0.4 | 0.40 | 2.6 | 4.95 | 4.95 |
Payout ratio (%) | 0.05 | 0.04 | 0.03 | 0.62 | 0.59 | 0.55 |
Points to be noted:
- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
- PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
- PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
- Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
- EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
- DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
- Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.
- Trailing 12 Months (TTM): Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data.
Dividend of Olectra Greentech and Ashok Leyland Ltd
The table below shows a dividend paid by the company.
Ashok Leyland | Olectra Greentech | ||||||
Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) | Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) |
31 Oct, 2024 | 19 November, 2024 | Interim | 2 | 25 April, 2024 | 19 Sep, 2024 | Final | 0.4 |
20 Mar, 2024 | 3 April, 2024 | Interim | 4.95 | 5 May, 2023 | 21 Sep, 2023 | Final | 0.4 |
23 May, 2023 | 7 Jul, 2023 | Final | 2.6 | 2 May, 2022 | 20 Sep, 2022 | Final | 0.4 |
19 May, 2022 | 14 Jul, 2022 | Final | 1 | 29 May, 2012 | 20 Sep, 2012 | Final | 0.2 |
25 Jun, 2021 | 31 Aug, 2021 | Final | 0.6 | 30 Aug, 2011 | 22 Sep, 2011 | Final | 0.2 |
4 Mar, 2020 | 19 March, 2020 | Interim | 0.5 | 12 Aug, 2010 | 20 Sep, 2010 | Final | 0.2 |
24 May, 2019 | 23 Jul, 2019 | Final | 3.1 | 31 Aug, 2009 | 17 Sep, 2009 | Final | 0.4 |
18 May, 2018 | 9 July, 2018 | Final | 2.43 | 1 Sep, 2008 | 18 Sep, 2008 | Final | 0.4 |
26 May, 2017 | 11 Jul, 2017 | Final | 1.56 | 30 Jul, 2007 | 20 Sep, 2007 | Final | 0.4 |
Advantages and Disadvantages of Investing in Olectra Greentech Ltd
Olectra Greentech Ltd
The primary advantage of Olectra Greentech Ltd lies in its pioneering role in India’s electric vehicle (EV) and energy sector, with a focus on manufacturing electric buses and offering innovative green technology solutions for sustainable transportation.
- Leadership in Electric Mobility: Olectra Greentech is a leader in electric bus manufacturing, catering to India’s growing need for sustainable public transportation with eco-friendly and efficient mobility solutions.
- Innovative Technology: The company employs advanced EV technologies, including battery management systems, to enhance performance, efficiency and reliability, setting it apart in the competitive green technology market.
- Government Support: Olectra benefits from strong government backing and incentives for EV adoption, positioning it to capitalize on India’s push for green mobility and renewable energy integration.
- Expanding Market Reach: With increasing demand for electric buses in both domestic and international markets, Olectra is strategically expanding its footprint, securing new contracts and enhancing its revenue potential.
- Sustainability Commitment: Olectra Greentech is dedicated to reducing carbon emissions by promoting clean transportation, aligning with global environmental goals and appealing to eco-conscious investors and stakeholders.
The main disadvantage of Olectra Greentech Ltd is its reliance on the nascent electric vehicle market, which faces challenges like high manufacturing costs, limited infrastructure and dependence on government incentives, impacting growth and profitability.
- High Manufacturing Costs: Producing electric buses involves significant costs for batteries and advanced components, reducing profit margins and making it difficult to compete with traditional fuel-powered alternatives in price-sensitive markets.
- Infrastructure Limitations: The lack of widespread EV charging infrastructure in India poses a challenge to adoption, affecting Olectra’s ability to expand its market and ensure efficient operations for its vehicles.
- Market Volatility: The electric vehicle sector is highly competitive and influenced by evolving technologies, regulatory changes and consumer preferences, making it difficult for Olectra to maintain consistent growth and market share.
- Dependence on Government Policies: Olectra relies heavily on government incentives and subsidies for EV adoption, which can be subject to policy shifts, potentially impacting the company’s operations and long-term strategy.
- Technology Dependence: Rapid advancements in EV technology require continuous investment in R&D, increasing costs and raising the risk of obsolescence for existing products if the company fails to keep up with innovation.
Advantages and Disadvantages of Investing in Ashok Leyland
Ashok Leyland Ltd
The primary advantage of Ashok Leyland Ltd lies in its position as a leading manufacturer of commercial vehicles in India, backed by a diverse product portfolio, robust distribution network and a strong focus on innovation and customer needs.
- Diverse Product Portfolio: Ashok Leyland offers a wide range of commercial vehicles, including trucks, buses and defence vehicles, catering to various industries and ensuring a strong presence across different market segments.
- Robust Distribution Network: The company benefits from an extensive sales and service network, enabling efficient delivery, after-sales support and enhanced customer satisfaction in domestic and international markets.
- Innovation and Technology: Ashok Leyland emphasizes technological advancements, such as fuel-efficient engines and electric vehicle initiatives, to meet evolving market demands and enhance its competitive edge.
- Strong Brand Equity: With decades of experience and a trusted reputation, Ashok Leyland commands strong brand loyalty, making it a preferred choice for customers seeking reliable commercial vehicles.
- Expanding Global Reach: The company is actively growing its international presence through exports and strategic partnerships, diversifying its revenue streams and reducing dependency on the domestic market.
The main disadvantage of Ashok Leyland Ltd is its dependence on the cyclical commercial vehicle market, which is heavily influenced by economic conditions and infrastructure development, leading to fluctuations in demand and revenue unpredictability.
- Market Dependency: The company’s revenue is tied closely to the commercial vehicle market, which experiences significant cyclical variations based on economic growth, infrastructure projects and policy changes, making it vulnerable to demand downturns.
- High Competition: Ashok Leyland faces intense competition from domestic and international players, requiring constant innovation and pricing strategies to maintain market share and profitability in a highly competitive industry.
- Volatile Raw Material Costs: Fluctuations in the prices of raw materials like steel and aluminium impact production costs, potentially squeezing margins and affecting overall financial performance.
- Limited Passenger Vehicle Segment: Unlike some competitors, Ashok Leyland’s portfolio is heavily focused on commercial vehicles, limiting diversification and exposing the company to risks associated with a single sector.
- Regulatory Challenges: Adapting to evolving emission standards and safety regulations involves substantial investments in technology upgrades, increasing operational costs and impacting short-term profitability.
How to Invest in Olectra Greentech and Ashok Leyland Ltd Stocks?
Investing in Olectra Greentech and Ashok Leyland stocks requires understanding the automotive and green technology sectors, analyzing financial performance and choosing a reliable broker like Alice Blue for seamless trading and informed investment management.
- Research the Sector: Study the electric vehicle and commercial vehicle markets, focusing on trends, growth drivers and challenges. Understand the roles of Olectra Greentech and Ashok Leyland in these industries to make informed decisions.
- Open an Account: Use Alice Blue, a trusted broker, to open a Demat and trading account. Alice Blue provides efficient trading platforms, competitive brokerage rates and research tools for managing investments effectively.
- Analyze Financials: Review key metrics like revenue growth, profitability and debt levels for both companies. Assess their competitive positioning and plans to evaluate their potential for long-term growth and stability.
- Diversify Investments: Allocate investments across Olectra Greentech and Ashok Leyland based on individual financial performance and risk tolerance. Diversifying helps balance potential losses and optimize returns in a volatile market.
- Monitor Performance Regularly: Stay updated on market trends and stock performance using tools provided by brokers like Alice Blue. Regular monitoring helps make timely adjustments and take advantage of new opportunities in the dynamic automotive and green energy sectors.
Olectra Greentech vs. Ashok Leyland : Conclusion
Olectra Greentech stands out as a pioneer in electric mobility, focusing on sustainable transportation solutions through its innovative electric buses and green technologies. It is ideal for investors seeking growth opportunities in the emerging electric vehicle and renewable energy sectors.
Ashok Leyland excels as a leading manufacturer of commercial vehicles, offering a diverse portfolio of trucks and buses. With a strong market presence and technological advancements, it appeals to investors looking for stability and consistent growth in the automotive sector.
Best Automobile & EV Sector Stocks – Ashok Leyland Vs Olectra Greentech : FAQs
Olectra Greentech is an Indian company specializing in electric vehicles and renewable energy solutions. It focuses on manufacturing electric buses and has made significant contributions to sustainable transportation in India. The company aims to promote eco-friendly alternatives and reduce carbon emissions in the public transport sector.
Ashok Leyland Ltd is one of India’s leading commercial vehicle manufacturers, offering a diverse range of trucks, buses and defence vehicles. Known for its innovation and reliability, the company plays a pivotal role in India’s automotive industry, with a growing presence in international markets.
Automobile stocks represent companies involved in manufacturing vehicles like cars, trucks and buses, while EV (Electric Vehicle) stocks focus on producing electric-powered vehicles and related technologies. These stocks offer opportunities to invest in the evolving automotive industry and the growing demand for sustainable, eco-friendly transportation solutions.
As of January 2021, B. Sharat Chandra was appointed as the Chief Executive Officer (CEO) of Olectra Greentech Ltd. He also serves as the Chief Financial Officer (CFO) of the company. Olectra Greentech is a leading Indian manufacturer of electric buses and composite polymer insulators, committed to advancing sustainable transportation solutions.
The main competitors for Olectra Greentech include Tata Motors, BYD and Eicher Motors in the electric vehicle and bus manufacturing sector. Ashok Leyland faces competition from Tata Motors, Mahindra & Mahindra and Volvo Eicher, primarily in the commercial vehicle segment, including trucks and buses.
As of December 2024, Ashok Leyland Ltd has a market capitalization of approximately ₹638.04 billion, reflecting its significant presence in the commercial vehicle sector. In comparison, Olectra Greentech Ltd’s market cap is around ₹12,027 crore, indicating its position as a key player in the electric vehicle industry. Market capitalization represents the total value of a company’s outstanding shares, serving as a key indicator of its market worth.
Olectra Greentech focuses on key growth areas such as expanding its electric bus production capacity, innovating battery technology and entering new markets domestically and internationally. The company emphasizes sustainable transportation solutions and leverages government incentives to drive the adoption of electric vehicles and renewable energy technologies.
Ashok Leyland’s key growth areas include expanding its commercial vehicle portfolio, investing in electric and alternative fuel technologies and enhancing its global footprint through exports. The company focuses on innovation, operational efficiency and catering to the growing demands of infrastructure and logistics sectors to drive sustainable growth.
Ashok Leyland offers better dividends compared to Olectra Greentech, supported by its stable financial performance and established market presence. Olectra Greentech, being focused on growth and innovation in the EV sector, reinvests earnings, making it less attractive for dividend-seeking investors.
For long-term investors, Ashok Leyland provides stability with its diverse commercial vehicle portfolio and consistent market presence, appealing to conservative investors. Olectra Greentech offers higher growth potential in the emerging EV sector, making it suitable for risk-tolerant investors seeking opportunities in sustainable and innovative technologies.
Olectra Greentech’s revenue primarily comes from the electric vehicle sector, focusing on electric buses and renewable energy technologies. Ashok Leyland generates most of its revenue from the commercial vehicle segment, including trucks, buses and defence vehicles, catering to infrastructure, logistics and public transportation sectors.
Ashok Leyland is generally more profitable due to its established presence in the commercial vehicle market and consistent revenue streams. Olectra Greentech, while showing strong growth potential in the electric vehicle sector, faces higher costs and market volatility, making its profitability less consistent in comparison.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.