Olectra Greentech’s stock price has seen a surge of 24% over the last three trading days, primarily driven by positive corporate news. The company announced that EVEY had received two Letter of Awards (LOAs) from the Telangana State Road Transport Corporation (TSRTC) for 550 Electric Buses, including 500 buses for intra-city and 50 buses for inter-city operations.
Despite the overall weak market conditions, Olectra Greentech’s shares continued their upward trend, rising by 15% to reach Rs 647.95 in intra-day trade on Thursday. In contrast, the S&P BSE Sensex was down by 0.50% at 60,053 at 01:07 PM.
Under the Gross Cost Contract (GCC) / OPEX model, EVEY has placed orders with Olectra Greentech for the supply of 500 Electric Buses and 50 Electric Buses. These contracts are valid for a period of 12 years and 10 years, respectively. Olectra Greentech will deliver these buses over a period of 16 months.
Olectra Greentech, which is part of the Megha Engineering & Infrastructures (MEIL) Group, is a leading electric bus manufacturer in India. Additionally, the company is also the largest manufacturer of silicone rubber/composite insulators used in power transmission and distribution networks. EVEY is a wholly-owned subsidiary of Promoters (MEIL Holdings Limited).
In other news, Olectra Greentech’s stock price has seen a sharp rise of 68% in the past 10 trading days after the company unveiled its first Hydrogen-powered bus in collaboration with Reliance Industries (RIL).
Olectra Greentech revealed on February 23 that it has developed a 12-meter low-floor hydrogen-powered bus with a seating capacity of 32 to 49 passengers and a single driver seat. The bus can travel up to 400 km on a single hydrogen fill, and the company expects to launch it commercially within a year.
In another development, Olectra Greentech announced on March 1 that its 6×4 heavy-duty electric tipper has received India’s first homologation certificate from the country’s automobile regulatory agencies. The electric tipper is now fully compliant with all Central Motor Vehicles Rules, making it roadworthy.
According to Olectra Greentech, both public and private transport fleets are likely to adopt electric buses rapidly as diesel prices continue to rise. Diesel accounts for 40 to 50% of the cost per kilometer, making it a significant operating expense that will be impacted by diesel price increases.
Convergence Energy Services Limited (CESL) has been mandated by NITI Aayog to procure an additional 50,000 electric buses over the next few years. Although this represents less than 10% of the total buses currently operating in India, the demand for electric vehicles is expected to surge as both State Transport Undertakings (STUs) and private operators, including mufassil operators, school bus operators, airport transfers, and tourist operators, express interest in adopting electric vehicles for their operations. This is anticipated to create a significant demand for EVs in the coming years, according to Olectra Greentech’s FY22 annual report.
Despite this positive outlook, the company’s stock has underperformed the market over the past year, gaining only 2% compared to a 10% increase in the benchmark index. Its stock price reached a record high of Rs 940 on December 16, 2021.
