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9/28/2017

E-Vehicles

Alpha_scripts:
We all know that the world will be running on Electric Vehicles by 2030.

Being in the stock market, we can all sense that electric vehicle car part makers will benefit heavily and considering that India’s first vehicles will roll out by 2020, it makes infinite sense to spot multibaggers in this space.

Typically, the following parts make up an electric vehicle:

Body Battery, Regenerative Braking, Drive System Microcontroller, Of course, tyres and other routine auto parts too.

We’ll do the batteries in this first installment.

About Electric Vehicle Batteries

If electric vehicles are to succeed, the batteries should help the car run longer miles long and be cost-effective.

Such batteries must power the car for a reasonable number of miles. There is already talk about developing Aluminum air batteries that will last 1,000 miles and cost the consumer about INR 3 per mile.

As technology advances, these costs will come down.

But before we experience Aluminum air batteries, we have to work with Lithium Ion batteries.

Lithium ion batteries, the first to get off the block, contain liquids, and this makes make them heavy. Sooner or later these will have to be replaced but we have to make do with them in the present.

On a side note, IBM is working on Lithium Air and other research labs are working on Aluminum air batteries that will use their respective metals as fuel. After a certain number of miles (One Aluminum Air battery lasts 1,000 miles), the batteries will have to be replaced.

So, while picking stocks, let’s focus on 2 prominent materials that will be used to manufacture EV batteries — Lithium (for the immediate future) and Aluminum (for the distant future).

Know that lithium and graphite (for the anodes) are used in Lithium Ion batteries.

Electric Vehicle Battery Stocks that can become Multibaggers

*MOIL* — supplies manganese which is used to make aluminum, steel and also will be a key ingredient in EV batteries.

*HBL Power Systems* — makes batteries for the defence and industrial sectors. Has presence in USA, Middle East and Europe. Can easily handle lithium batteries and changes in technology. Everything looks cool about it except for the fact that its price is a bloody laggard.

*Hindustan Copper* — mines copper and nickel, which are used in batteries

*Graphite India* — Graphite is used in EV batteries, but this stock has appreciated way too much

*Ashok Leyland* — will make electric buses and batteries in collaboration with SUN Mobility. Maybe it will take over Sun Mobility and start making batteries

Other quality battery makers like *Everready, Amara Raja and Panasonic* too will jump in the fray.

*Eon Electric*, a small company, also makes Lithium Ion batteries along with mobile parts and optic fibre cable stuff. Please study it in depth before  making any decision.

*Hindalco, Vedanta, National Aluminum* stocks have massive potential going forward irrespective of the fact whether Aluminum Batteries are made or not because aluminum is lightweight and will be used to make the car’s body.

*HEG* should do well too as it is into graphite electrodes (along with power and carbon), but its share price has jumped 3 times in the last 12 months.

*Rain Industries*, mines carbon which is used in making many electrical accessories for EVs.

*Himadri Specialty Chemicals* (suggested by Geordie Job Pottas, an independent equity researcher)

You may want to look at this languishing stock that has the potential to vroooom (but I’m unsure of the management) —  Orient Abrasives, which is into mining metals for creating aluminum and many components for EVs.

Alpha_scripts:
Other significant players:
ABB/ HBL power Systems/ Cummins/ Siemens/ Tata Power (Charging Infrastructure)

TVS/BAJAJ (2 wheelers)

Ashok Leyland/ Goldstone Infratech. (Electric Buses)

M&M/ Tata Motors

Atll auto/ Scooters India (3 wheelers)

Schneider Electric Infrastructure

Gravitas (metal/alloys for batteries)

Minda corp (R&D)

Eveready, Panasonic, Exide, Amara Raja Batteries

JBM auto/ SML Isuzu

JSW energy/ Kirloskar (diversified/ engine)

NTPC, PFC, PGC (finance)

Electrotherm (Yobykes, scooters, buses, motors, components, Rickshaws, R&D)
Since PMS was taking a lot of time and efforts, I decided to start of with a channel on Telegram by the name Alpha_scripts
The link for the same being: t.me/aceinvestorvaibhav
In this way, I will be able to give real time inputs. 


Surprise

Since PMS, was taking a lot of time and efforts, I decided to start of with a channel on Telegram by the name Alpha_scripts

The link for the same being: t.me/aceinvestorvaibhav

In this way, I will be able to give real time inputs. 

I will send an invite to those who have posted their numbers. 
If I miss out anyone, please comment below.

Note that, the broadcast sent via this channel are meagrely Stock Market Ideas shared for Information Purpose. 
One might consult their advisor before making any decisions.

Markets too expensive but yet, correction brings a lot of opportunities.

It is essential to be cautious now, since Nifty has tanked upto almost 400-450 points in the previous few sessions.
Currently the Indian Markets are trading at 24 times their P/E. We are exploring other emerging markets like Russia, Brazil, etc.
One bad news can trigger other downward rally. On the contrary, the money pulled out in the previous sessions was dominantly by FIIs and Emerging Market Funds.
Since China was recently downgraded, it leaves the institutional players with one primary market namely India.
Currently we are only looking for companies with solid order book, strong fundamentals and steady growth.
I will mention a few trends and themes that we are looking upto:
Finance: JM Financial, IIFL Holdings and Geojit Finance
Energy (Non-Conventional): Schneider Electric Infrastructure, JSW Energy and Tata Power
Automobile: Ashok Leyland, Goldstone Infratech, SML Isuzu
Automobile Components: Minda Corp, Porwal Auto
Agro: Nath Bio-Genes, Meghmani Organics, Sharda Crop
Retail: Future Consumer, V2 retail, Vmart Retail, LT foods, Heritage Foods
Other noteworthy mentions: Sadbhav Engineering, Ramco Systems, ITD cementation, Ram Ratan Wires, Sical Logistics, Gravita India.
Pharma: Natco, PSP pharma, genysis