This proposal augurs well for future electric vehicle manufacturers and charging point infrastructure companies
The government proposes to setup charging stations for electric vehicles every three kilometres in cities with million-plus population and smart cities and every 50km on busy national highways. The government is likely to offer fiscal incentives and facilitate land from municipal authorities for setting up the infrastructure.
Why is this important
Government intend to propose setting up of electric vehicles charging points is a big boost for the electric vehicle segment. This is also positive for companies looking to set-up charging stations.
Stocks to be impacted
Public sector companies such as NTPC (CMP: Rs. 167.3, MCap: Rs. 138,111crs, PE 10.6x FY20E), Power Grid Corp. (CMP: Rs.213, MCap: Rs. 111,432 crs, PE 8.9x FY20E), Indian Oil Corp.(Rs.164, MCap: Rs.160,000 crs, PE 8.1x FY20E).
Electric car manufacturers such as Tata Motors (CMP: Rs.315.5, MCap: Rs. 90,994 crs, PE 5.7x FY20E), Goldstone Infratech Ltd (CMP: Rs.157.5, MCap: Rs. 765.5 crs, PE 157x FY18E), Ashok Leyland Ltd (CMP: Rs. 154, MCap; Rs. 45,252 crs, PE 17.2x FY20E)