Background
Olectra Greentech Ltd (formerly known as Goldstone Infratech Ltd) was founded in 1992 in Hyderabad. Olectra Greentech Ltd is market leader in manufacturing of silicon rubber polymer composite insulators in India, with this Olectra has been a part of building the power transmission and distribution in India. Olectra vision to support environment has led to a new phase by developing innovative solutions for society. As a part of its mission Olectra embraced its growth path into new age green technology solutions in public mobility. As an expression to this Olectra offers green solution to public transport by introducing ebus (electric bus) in collaboration with globally renowned BYD group.
BYD group-
BYD group is not only a battery maker but also the worldâs largest electric vehicle company. These revolutionary electric buses will help fleet operators abandon fossil fuels, improve environmental quality and reduce operating cost.
Government policy in favor-
FAME scheme to introduce electric vehicles. The FAME India (Faster Adoption and Manufacturing of Hybrid ans Electric vehicles) scheme was launched by the ministry of Heavy Industries and Public Enterprises in 2015 to incentivize the production and promotion of eco-friendly vehicles including electric vehicles and hybrid vehicles. FAME India is a part of the National Electric Mobility Mission Plan. Main thurst of FAME is to encourage electric vehicles by providing subsidies. Vehicles in most segments â two wheelers, three wheelers, electric and hybrid cars and electric buses obtained the subsidy benefit of the scheme. There are two phase of the scheme FAME I and FAME II. At present FAME gives incentives to electric scooters ranging between Rs1700- Rs39,000. For three wheelers, the incentives range from Rs 3300- Rs 61,000 and for electric and hybrid cars benefit ranges from Rs 11,500 to Rs 1.43 lakh. Electric buses cost about Rs 55 lakh less under the scheme. The total outlay of Phase-I of the FAME-India scheme has been enhanced from Rs 795 cr to Rs 895 cr. Recently union cabinet chaired by Prime Minister Narendra Modi has approved a proposal for implementation of a scheme FAME India PHASE II for promotion of electric mobility in country. The scheme with a total outlay of Rs 10,000 crores over the period of three years will be implemented with effect from 1st April 2019. Through this scheme, the emphasis is on electrification of the public transportation that includes shared transport. Demand incentives on operational expenditure mode for electric buses will be delievered through state/city transport corporation (STUs). The government plans to support ten lakh electric two wheelers, five lakh electric three wheelers, 55,000 electric 4 wheelers and 7,000 electric buses under this scheme. Government also aims to install around 300 electric vehicle charging stations along the Indian highway by end of this year. The installations will initially begin with the Delhi-Jaipur-Agra highway triangle and the Mumbai â Pune highway. On such highways ,charging stations will be established on both sides of the road at an interval of about 25 km each. About 2,700 charging stations will be established in metros, other million-plus cities, smart cities and city of hilly states across the country so that there is availability of at least one charging station in a grid of 3km x 3km. FAME scheme received around 47 proposals which demanded deployment of 3,144 electric buses around 44 cities. All this will be highly benefited to Olectra Greentech ltd since olectra greentech is leading player in electric buses.
About Olectra Plants
Olectra âBYD has a plant at Jadcherla , near Hyderabad, Telangana, where company is manufacturing electric buses. The plant has capacity to manufacture 2,100 electric buses per year. The company has plans to scale up manufacturing capacity to around 5,000 buses per year by 2021. Olectra âBYD buses are 100% âMade in Indiaâ .
Bus types
Olectra at present produces three types of electric buses. K6, K7 and K9. K6 has a sitting capacity of 22+ driver. It can run upto 200 km in single charge. Its battery takes 3 hours to charge fully. Its battery is made up of Li-ion phosphate. Its maximum speed is 80 kmph (with speed limiting device). Its battery contains temperature sensors, electric leakage sensors and battery cooling system . Batteries are fire proof batteries and electric powertrain. Such batteries are used in 60,000 operational electric buses world-wide. Besides this K6 bus contains disk brakes with EBS, Real time tracking, CCTV surveillance, air conditioner, passenger information safety, medical kit, hammer and fire extinguisher. K7 has a seating capacity of 31+ driver. It can run upto 200-250 km in single charge. It battery takes 2-3 hours to charge fully. Its maximum speed is 80kmph ( with speed limiting device). Its battery characteristics and facalities in bus are same as K6. One addition in K7 bus is dual in â wheel motor solution with integrated regenerative braking which recovers 30% of lost braking energy resulting in a quiet comfortable ride. K9 has a seating capacity of 39+driver. It can run upto 300-350 km in single charge. It takes 4-5 hours to charge fully.Its maximum speed is 80 kmph (with speed limiting device). Its battery characteristics and facalities in bus are same as K6 and K7. All this buses are 100% emission free.
Order Book
Olectra Greentech has a strong order book as it won the bids to supply 290 buses to various state transport undertakings (STUs). Olectra â BYD has emerged as frontrunner as it received the order for supplying the largest number of electric buses to the STUs. In addition to this Olectra has supplied 40 electric buses of 12-meter length to Telangana State Road Transport corporation. With induction of this 40 buses , Olectra has enabled Telengana State Road Transport Corporation to deploy the largest fleet of electric buses by any state transport utility in India. Recently Kerela takes a step ahead to put electric mobility in vogue by roping in Olectra âBYD to run its fleet of electric buses in the state. Olectra âBYD runs ten electric buses at present in Kerala and government is planning to add more. On average bus operates 360 km daily on Nilackal âpampa corridor in Kerala. From the services, the KSRTC got a profit of Rs 57 per km, including the electricity cost, out of the fare collection of Rs 110 per km. only 0.8 units of electricity is needed for this electric bus to run one kilometer . Bangalore Metropolitan Transport Corporation (BMTC) has signed for 80 electric buses with Olectra Greentech ltd. The company ,which may deliver 160 buses to BMTC in the future , is expecting the deal to be worth over Rs 300 crore. In Mumbai Brihanmumbai Municipal Corporation runs 6 electric buses of Olectra Greentech ltd. The state government is planning to add more in its fleet. Pune Mahanagar Parivahan Mahamandal Limited (PMPML) issued the work order of 125 electric buses. The order has been awarded to Olectra Greentech ltd. Tata company also participated in the tendering process , but could not bag the order as the firm was asking for one year to deliever the buses. This 125 buses by Olectra is expected to be added to the public transport utility fleet by june this year. The new 125 e-buses are air conditioned and 12 metres in length. Olectra Geentech had already provided 25 electric buses of 9 metre length to PMPML and they are running on Pune city roads. Around 100 electric buses will ply on Goan roads after the successful trial run of 12m, K9 model bus of Olectra Greentech conducted by Kadamba Transport Corporation Ltd (KTCL) . Goa state government said that Olectra is ready to give the buses to state government to run on kilometre basis. Olectra will maintain the buses and state government will pay them per kilometre. Olectra Greentech supplied 25 electric buses model K7 to Himachal Pradesh Transport Corporation. The bus was flagged off by GS Bali Himachal Pradesh Minister of Transport , at Kullu on the Kullu- Manali- Rohtang pass route. This bus has the distinction of successfully completing trials on steep gradients and at altitudes above 13,000 feet for the first time in India. In Uttrakhand stateâs first investor summit, Olectra Greentech signed a memorandum of Understanding worth Rs 700 crore to operate around 500 electric buses in Uttrakhand. Uttrakhand chief minister Trivendra Singh Rawat flagged off the run of electric bus on Dehradun â Mussoorie and Haldwani â Nainital routes. Delhi government has initiated the trials of electric buses of Olectra Greentech. Recently Delhi government cabinet approves 1000 electric buses . Tender for this will be out soon . This will be great opportunity of Olectra Greentech. Chandigarh transport undertaking has also done trails of electric buses provided by Olectra greentech . Tender for this will be out soon. The civic transport wing committee has approved a proposal of Navi Mumbai Municipal Transport (NMMT) management for purchasing battery operated 30 electric buses. Tender for this will be out soon . Many other tenders are also coming out by different states in near future. This will be great opportunity for Olectra Greentech to expand its operations since Olectra is leading company in electric bus segment. Olectra has become the first EV company in the India to cross the milestone to having over 100 electric buses commercially plying on Indian roads. Olectra now has 108 electric buses arcoss the states of India . Olectra âBYD bus have clocked close to 6 lakh + kilometers which translate to the reduction of CO2 emissions up to 630 tonnes equivalent to 3,143 trees required to handle that much of carbon emission. These electric buses have low running cost, at a time when crude oil price are soaring. Their cost is just Rs 6 per km, against Rs 15 per km for CNG buses and Rs 20 per km for diesel buses. BYD a Chinese auto major which has tied up with Olectra greentech is planning to setup an research and development centre in India to develop technologies to produce electric cars. BYD has a huge portfolio of clean energy products , out of these products some of them it can produce in India with partnership of Olectra Greentech. This is clear indication that Olectra Greentech will produce electric cars in future in partnership with BYD. There has been much R&D in advancing the performance of buses to drive the longest possible on a single charge. There are companies who claim to drive for about 1700 km per charge . Olectra- BYD has got the technology to deploy the longer range electric buses as per customers requirement. Since government of India is taking various initiatives to promote electric vehicles which will help to reduce pollution there will be a great boom in EV sector and OlectraGreentech will be highly benefited from this. From March 2004 to March 2018 companyâs income from operation grew from Rs 12.33 crore to Rs 161.49 crores. From the same period its net profit grew from Rs 10 lakhs to Rs 8.89 crores . In past three quarters company posted losses because it is heavily invested in research and development of electric vehicle segment. Soon the returns on capital employed will be visible.
**Fundamental Ratios:
Market Cap: 546.25 Cr.
Stock P/E:
Dividend Yield: 0.00 %
ROCE: -1.56 %
ROE: -3.82 %
Sales Growth (3Yrs): 22.31 %
PEG Ratio:
Price to Earning:
Profit growth: 24.97 %
Profit growth 3Years: %
Profit growth 5Years: %
Profit growth 7Years: %
Sales growth: 8.40 %
Promoter holding: 61.50 %
Change in promoter holding 3Years: 10.65 %
Pledged percentage: 15.57 %
Debt to equity: 0.06
Price to Cash Flow: -4.20
Intrinsic Value:
Price to book value: 0.76
OPM: 0.18 %
Quick ratio: 2.73
Interest Coverage Ratio: 0.70
