Resurfacing HDFC Securities' June 2025 move to initiate Ather Energy with Buy rating, seeing 31% upside
Coverage updates in May–June 2025 also flagged an upcoming lock-in expiry for Ather Energy shares, while highlighting IPO-sentiment and rare-earth supply risks for Indian EV makers.
What happened
HDFC Securities initiated Ather Energy with a Buy rating and projected 31% upside. The page also flagged an upcoming lock-in expiry, Ather’s tepid listing
Key facts
- 31% expected upside
- Nearly 6% of Ather Energy and Borana Weaves shares expected to become tradable after lock-in expiry
Why this matters
Ather’s positive analyst coverage may strengthen its strategic currency for partnerships and expansion, while underscoring the value of securing critical-mineral supply chains.
What to watch
- Lock-in expiry date, eligible share count, block deals and promoter/early-investor selling disclosures.
- Monthly VAHAN registrations, Ather market share and regional performance in premium electric scooters.
- Quarterly revenue growth, gross margin, EBITDA trend, inventory days and cash-burn guidance.
- Rare-earth export controls, magnet price movements, supplier lead times and disclosed production disruptions.
- New model launches, price cuts, financing offers and dealer-network additions by major electric two-wheeler rivals.
- Changes to central or state EV incentives, registration policies, charging standards or localization requirements.
- Track post-initiation trading volumes and institutional ownership changes to distinguish durable rerating from short-term momentum.
- Prepare investor and dealer communications ahead of lock-in expiry, emphasizing delivery growth, unit economics, cash runway and shareholder concentration.
- Increase sourcing resilience for motors and magnet-related inputs through supplier diversification, longer-term contracts, localization and redesign options.
- Use any improved market sentiment selectively to accelerate high-return retail touchpoints, service capacity and charging infrastructure rather than broad discounting.
- Benchmark Ather's delivery momentum, pricing actions and dealer additions against Ola Electric, TVS, Bajaj and Hero MotoCorp.