Shares of e-scooter maker Ather Energy rose over 3% on September 19, taking their gains for the week to 7%. This is the fifth straight weekly rise for the stock.
On September 19, Ather Energy shares on NSE closed 3% higher at Rs 580 apiece.
Domestic brokerage HDFC Securities reiterated "buy" on the stock and considers Ather Energy as top pick and gave a price target of Rs 748 per share, which implies up to 29% upside.
Ather Energy's expansion from 351 to 700 stores by next year and plans to launch more affordable models from late FY27 will drive growth and profitability, said HDFC Securities.
The brokerage noted benefits from operating leverage, move to lower cost rechargeable lithium-ion battery and EL platform with better monetisation of its software and accessories to help towards positive EBITDA in FY28
A more seamless transition to using the light rare earth magnets from heavy rare earth magnets, avoids any meaningful production impact, unlike competition, said HDFC Securities.
Ather Energy stock rose 93% since listing on May 6.
Ather Energy on August 4 reported a net loss of Rs 178 crore for the April-June quarter of FY26. This is nearly 3% lower than the Rs 183 crore net loss reported in the corresponding quarter of the previous financial year.
The firm's revenue from operations meanwhile surged nearly 79% on-year to Rs 645 crore in Q1 FY26. It had earlier reported revenue from operations at Rs 360.5 crore in Q1 FY25.
Ather Energy's expenses jumped more than 54% to Rs 851 crore in Q1 FY26, from Rs 551 crore in Q1 FY25. EPS improved to - Rs 5 per share, as against - Rs 7 per share in the year-ago period.
The electric bike maker said that it sold 46,000 units during the quarter under review, marking a 97 percent on-year jump from the same period last year. EBITDA margin meanwhile rose 1,700 bps YoY to 16 percent in Q1FY26, from negative 33% in Q1FY25.
With inputs from Reuters
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