Is Olectra Greentech Share A Good Buy?

Is Olectra Greentech Share A Good Buy?

If you’ve been glancing over the share market this year, you must have come across the name Olectra Greentech.

Olectra share price has jumped over 20% this year. The electric vehicle manufacturer has bagged several new contracts just this year that has helped the shares touch a new all-time high as well. So, with this renewed investor interest and an overall push towards transitioning to renewable energy, we take a deep dive into the stock.

Olectra Greentech Limited: Company Background

Olectra Greentech Limited, based in Hyderabad, India, and is one of the largest manufacturers of electric buses in the country. The company is said to be the first-ever manufacturer of electric buses and has manufacturing facilities in Hyderabad. Olectra is now expanding its product line to include three-wheeled electric autos and electric trucks in the e-mobility sector.

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Olectra Greentech Limited is a publicly listed company and is presently traded on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). You can check the Olectra share price on both the BSE and NSE’s websites. The small-cap company is headed by Venkateswara Pradeep Karumuru and has a market cap of over ₹5,000 Crore.

Olectra Greentech Share Price History And Shareholding Pattern

As per the data available on December 31, 2022, the company’s promoters held around 50% shares of Olectra Greentech. Around 10% stake was held by Foreign Institutional Investors and the remaining 40% shares of Olectra Greentech were held by the public.

Talking about Olectra Greentech’s share price history, the stock came into focus only in the past two-three years. In fact, the stock turned multibagger in 2020-2021 when it surged over 1,000%. The share that was trading at around ₹60 in late 2020, surged up to ₹700 in late 2021.

Olectra Greentech share price’s trading in 2023’s first quarter ended March 31. Chart: Courtesy of TradingView.

Now, with the boom in electric vehicles, the company continues to make headlines. Olectra share price did an absolute turnaround just this year. The stock had slumped to its 52-week low of ₹374.35 in late February 2023, but after the company launched its Hydrogen bus in partnership with Mukesh Ambani’s Reliance Industries Ltd., Olectra share price went on to hit its 52-week high of ₹743.50 just three weeks later.

Olectra Greentech Fundamentals

The company’s net profits have shown healthy growth over the past two financial years. In FY 2022, the its net profits quadrupled to ₹35.4 Crore. The company has crossed this number so far in the current financial year, with results of the final quarter yet to be released. In this financial year, the company has raked in profits of ₹38.6 Crore.

Talking about the company’s revenue, its total revenue for FY22 stood at ₹601 crore more than double the ₹292.9 crore revenue it booked in FY21. This year the company has already booked revenue of ₹724.5 crore.

Olectra Greentech Dividends

The company last paid out a cash dividend of ₹0.40 per share in September 2022. Olectra hadn’t paid any dividends for a decade before this. It paid out ₹0.20 per share in dividends in September 2012.

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Posted In: electric vehiclesEVsOlectra Greentech