HSBC has reiterated its ‘Buy’ rating on Ather Energy, with a target price of ₹450, citing continued improvements in profitability and a stable market share. The stock currently trades at ₹391.80, implying an upside of over 14%.
Gross margin expands, EBITDA losses narrow
In its Q1 review, HSBC noted that Ather Energy reported further expansion in gross margins and a reduction in EBITDA-level losses, signaling improving cost efficiency and scale benefits.
EL platform launch could drive market share gains
Despite the broader electric vehicle (EV) penetration remaining sluggish, HSBC highlighted that Ather’s market share has held up well. The upcoming launch of the EL platform is seen as a potential catalyst that could strengthen its position in the Indian two-wheeler EV space.
Key risk: Slow EV adoption
The brokerage, however, cautioned that EV penetration in India continues to improve at a slow pace, which remains a key downside risk for growth and valuation re-rating in the near term.
Brokerage view summary:
| Brokerage | Rating | Target Price | Key Takeaways |
|---|---|---|---|
| HSBC | Buy | ₹450 | Gross margin expands, EBITDA losses narrow, EL platform could boost market share |
Disclaimer: This article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice. Investors should consult their financial advisors before making investment decisions.
