HDFC Securities' June call to initiate Ather Energy with Buy rating, sees 31% upside, resurfaces
A market roundup resurfaces HDFC Securities' June 17 initiation of coverage on Ather Energy with a Buy rating and 31% projected upside. It also highlights approaching lock-in expiries and the potential effect of rare-earth export curbs on India's EV supply chain.
What happened
HDFC Securities initiated Ather Energy coverage with a Buy rating and 31% projected upside. The roundup also flags upcoming lock-in expiries, Helios Fund
Key facts
- 31% projected upside
- Nearly 6% of Ather Energy and Borana Weaves shares due to exit lock-in
Why this matters
Ather’s near-term strategic priority is securing critical-component access through supplier partnerships or localization as rare-earth export curbs threaten EV inputs.
What to watch
- Block deals, bulk deals, or exchange disclosures near lock-in expiration dates.
- Monthly electric two-wheeler registrations and Ather's market-share movement.
- Management commentary on motor supply, rare-earth inputs, production schedules, and inventory buffers.
- Evidence of discounting or higher customer-acquisition spending that could delay margin improvement.
- Government or Chinese policy changes affecting rare-earth exports, import approvals, or domestic component incentives.
- Track lock-in expiry schedules, eligible share volumes, and any disclosed promoter, employee, or pre-IPO investor sales.
- Compare Ather's delivery growth, market-share trend, dealer expansion, and gross-margin trajectory against the assumptions embedded in the Buy thesis.
- Watch for company disclosures on rare-earth magnet inventories, alternate sourcing, localization, and supplier-price pass-through.
- Monitor whether additional brokerages initiate coverage or revise targets, which could expand institutional ownership and trading liquidity.