HDFC Securities' June call on Ather Energy resurfaces: Buy rating, 31% upside
Resurfacing a June 2025 initiation, HDFC Securities had started coverage of Ather Energy with a Buy rating and a projected 31% upside. The call came as EV makers faced potential supply-chain pressure from China's rare-earth curbs and ahead of a lock-in expiry affecting nearly 6% of Ather shares.
What happened
HDFC Securities initiated Ather Energy with a Buy rating and projected 31% upside. Separately, nearly 6% of Ather and Borana Weaves shares were due to become
Key facts
- 31% expected upside
- nearly 6% of Ather Energy and Borana Weaves shares
- June 10, 2025
- May 29, 2025
- May 23, 2025
- April 2025
Why this matters
Ather’s positive analyst coverage may improve strategic leverage with partners and capital providers, while its rare-earth dependency highlights a need for supply-chain resilience and sourcing alternatives.
What to watch
- Actual trading and bulk/block deal activity after the lock-in expiry
- Management disclosure on rare-earth exposure, inventory duration, alternate suppliers, and localization plans
- Monthly vehicle registrations, market-share trends, and dealer/network expansion
- Gross-margin trajectory, price-discounting trends, and battery or motor component cost changes
- Additional analyst initiations, target-price revisions, or earnings-estimate changes
- Policy developments affecting Chinese rare-earth exports or Indian domestic magnet and motor manufacturing incentives
- Management may emphasize rare-earth inventory coverage, supplier diversification, localization, and contingency sourcing in investor communications.
- Investors may track lock-in related block trades and delivery volumes to distinguish one-off selling from a broader sentiment shift.
- Competing EV makers may accelerate localization of motors and magnet supply chains, increasing demand for domestic component capacity.
- A stronger share price could improve Ather's negotiating position with suppliers and potential strategic partners, while a weak post-lock-in performance could raise the cost of future equity capital.