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Know Your Stock| Olectra Greentech: A bet on green mobility and urban infrastructure?

With core competency in e-buses, the company has been diversifying into other segments.

March 02, 2023 / 16:40 IST
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(Representational image; Photo by MART PRODUCTION/Pexels)

On February 23, Olectra Greentech announced a partnership with Reliance Industries to develop a hydrogen-powered bus. Since then, the stock has climbed more than 30 percent. On March 2, Olectra-made and the country's first green tipper was cleared for roadworthiness, and the stock ended the day 5 percent higher.

Hydrogen buses and the green tipper will complement Olectra’s environment-friendly product portfolio. Investors view Olectra as a bet on green public transport and on the growth of urban infrastructure.

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The public and intra-city bus market will near complete electrification by 2030, according to Koushik Bhattacharyya, managing director and head – industrials investment banking, Avendus Capital. The market is big and looks ripe for disruption.

“India is the second-largest bus market globally and 25-30 million people use it for travel every day. The 500,000+ bus parc (passenger vehicles in operation) in India today is largely diesel/CNG based and is a major source of vehicular pollution. Electric buses offer substantially lower total cost of ownership over diesel and CNG buses. The bus segment will thus see rapid electrification,” said Bhattacharyya.