HDFC Securities' June call on Ather Energy resurfaces: 31% upside seen; rare-earth curbs cloud EV outlook
HDFC Securities initiated a Buy view on Ather Energy back in June 2025, citing EV-market potential and projecting 31% upside — a call now resurfacing. Separately, China's rare-earth export curbs could pose a supply-chain risk for Indian EV makers and auto stocks.
What happened
Ather Energy received a Buy rating from HDFC Securities, which projected 31% upside on EV-market potential. The news roundup also flagged China’s rare-earth
Key facts
- 31% expected upside
- nearly 6% of Ather Energy and Borana Weaves shares
- May 29, 2025
- June 10, 2025
- May 23, 2025
Why this matters
Ather’s growth narrative may improve partnership and expansion appeal, while rare-earth constraints could increase the strategic value of localized supply, alternative materials, and supplier alliances.
What to watch
- Chinese export-license approval timelines and any expansion of restricted rare-earth categories.
- Ather monthly registrations, market-share trend, dealer additions and delivery lead times.
- Management commentary on magnet inventory cover, alternative supplier qualification and input-cost exposure.
- Changes in motor, magnet and battery-component procurement prices for Indian EV manufacturers.
- EV subsidy, state-policy or charging-infrastructure developments that could cushion demand if vehicle prices rise.
- Quarterly gross-margin trajectory, inventory levels and capex requirements versus consensus expectations.
- Accelerate qualification of non-China rare-earth magnet, motor and component suppliers, including domestic sourcing partnerships.
- Build strategic inventory of critical magnets and motor components while reassessing working-capital exposure.
- Prioritize higher-margin models, software features and accessory revenue to offset potential input-cost inflation.
- Use transparent supplier-risk disclosures and production guidance to preserve investor confidence after the positive brokerage initiation.
- Monitor whether selective price increases can be passed through without weakening demand or dealer throughput.