19 Oct , 2021 By : monika singh
In the EV space, nothing is going to happen in the next one or two quarters. This is more of a directional call on which one will have to remain invested for a relatively longer period of time, says Deven R Choksey, MD, KR Choksey Investment Managers.
Let us talk about Tata Power. What has fundamentally changed for Tata Power, what is the excitement all about?
Fundamentally things have been scripted already and the market enthusiasm has changed. On one side, there is the loss-making Mundra unit and in that unit now at least the situation has emerged wherein a good quantity of power has been sold at a market price. This could possibly pave the way for the power to be sold at market price and I think the government would probably like to revisit the power purchase agreement, that is the first point.
However, one can find many companies which are on the ancillary side. Both
and Minda Corp have their own share of developments in the EV area. They have been supplying parts to either the two-wheelers or the four-wheelers. I feel that the situation is looking reasonably good for these two companies.
There are plenty of other companies in the ancillary space which are leaning towards the EV space. So slowly and gradually, one can start building the portfolio. We talked about Tata Power’s charging infrastructure; the battery management system and the charging infrastructure related businesses could also be looked at.
Nothing is going to happen in the next one or two quarters. This is more of a directional call on which one will have to remain invested for a relatively longer period of time.
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