Ather Energy gets Buy call with 31% upside as post-IPO share supply approaches
HDFC Securities has initiated a Buy view on Ather Energy, forecasting 31% upside. Separate reports flagged the expiry of post-IPO lock-ins and potential EV production risks from China’s rare-earth export curbs.
What happened
Ather Energy received HDFC Securities' Buy rating with projected 31% upside. Reports also covered its post-IPO lock-in share release, Helios Fund investment and
Key facts
- 31% expected upside
- nearly 6% of Ather Energy and Borana Weaves shares
- May 29, 2025
- May 23, 2025
- June 10, 2025
- April 2025
Why this matters
Ather’s approaching increase in tradable shares may broaden strategic-entry opportunities, while rare-earth exposure elevates the value of resilient supply-chain partnerships.
What to watch
- Post-lock-in delivery volumes and whether major pre-IPO shareholders disclose sales or retain holdings.
- China policy changes covering rare-earth exports, magnet licensing approvals and Indian import lead times.
- Ather monthly retail registrations, order backlog and production-versus-delivery gaps.
- Quarterly gross-margin movement, material-cost inflation and inventory or working-capital buildup.
- New domestic rare-earth, magnet, motor or alternative-technology supply agreements.
- Competitive pricing actions or incentive-led discounting in electric scooters.
- Track lock-in expiry dates, the size and ownership mix of shares becoming eligible for sale, and any block-trade activity.
- Assess Ather's exposure to rare-earth permanent magnets, supplier concentration, inventory cover and alternative sourcing plans.
- Watch monthly registration trends versus Ola Electric, TVS, Bajaj and Hero Vida for evidence that premium EV-scooter demand remains resilient.
- Monitor management commentary on production targets, localization, gross margin, dealer additions and cash burn in the next earnings update.
- Expect greater use of hedging, inventory stocking and localization partnerships by Indian EV manufacturers if export restrictions persist.