HDFC Securities starts Ather Energy coverage with Buy rating and 31% upside forecast
HDFC Securities has initiated coverage of Ather Energy with a Buy call, citing India’s electric two-wheeler opportunity. Related market updates flag IPO sentiment, lock-in expiries and potential supply-chain pressure from China’s rare-earth export curbs.
What happened
HDFC Securities initiated coverage of Indian EV maker Ather Energy with a Buy rating, citing EV-market potential and 31% expected upside. The news listing also
Key facts
- 31% expected upside
- nearly 6% of Ather Energy and Borana Weaves shares
Why this matters
Ather’s strengthened market narrative may improve partnership and capital-raising leverage, while making supply-chain alliances and rare-earth-risk mitigation more strategically urgent.
What to watch
- China rare-earth export licensing rules, shipment delays and magnet-price increases.
- Ather monthly registration volumes versus Ola Electric, TVS, Bajaj and Hero MotoCorp.
- Quarterly commentary on component availability, production schedules, gross margins and cash burn.
- Lock-in expiry dates, block deals and changes in institutional ownership.
- Policy changes affecting EV subsidies, state incentives, charging infrastructure and localization requirements.
- Monitor Ather’s quarterly deliveries, market-share trend and gross-margin progression against the assumptions embedded in the new coverage.
- Diversify or localize rare-earth magnet and motor-component sourcing, including inventory buffers and alternative supplier agreements.
- Use stronger investor attention to clarify path to scale, service-network expansion, battery economics and profitability milestones.
- Prepare for lock-in-related volatility through clear shareholder communication and consistent disclosure on promoter and pre-IPO investor holdings.