Bank of America said India’s electric vehicle adoption is at a tipping point and described Ather Energy as the “best proxy” to play this theme. The brokerage said Ather has moved past the validation phase, with a 16% market share among electric two-wheelers and a top-three position, while also commanding premium pricing.
According to Bank of America, scale will be the next leg of growth for Ather, with the Konark platform, EL platform and AURIC expected to drive market expansion and capacity scale. The brokerage said demand is currently ahead of supply.
The brokerage also sees a visible path to margin expansion, with the EL platform expected to reduce the bill of materials by 8-10%. This, combined with operating leverage from scale, is expected to take Ather’s EBITDA margin into the low teens by FY31, according to Bank of America.
All 16 analysts currently tracking Ather Energy have a “buy” rating on the stock, according to available analyst coverage. The stock is up 115% so far this year.
Ather Energy shares ended nearly 3% lower on Monday at ₹1,593.
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