Resurfacing HDFC Securities' June call: Ather Energy initiated with Buy rating, 31% upside seen
HDFC Securities had started coverage of Ather Energy with a Buy call and a projected 31% upside back in June 2025. Related May–June updates flagged the company’s post-IPO trading, an upcoming lock-in expiry affecting nearly 6% of shares and rare-earth supply risks for the EV sector.
What happened
HDFC Securities began Ather Energy coverage with a Buy rating and 31% projected upside. Page updates also covered Ather’s IPO listing, forthcoming lock-in
Key facts
- 31% expected upside
- Nearly 6% of Ather Energy and Borana Weaves shares due to exit lock-in
- May 29, 2025
- May 23, 2025
- June 10, 2025
Why this matters
Ather’s growing investor interest reinforces its strategic appeal, while rare-earth exposure increases the value of supply partnerships, localization and procurement-risk mitigation.
What to watch
- Actual shareholder selling volumes and price action around the lock-in expiry
- Monthly electric two-wheeler registrations, Ather market-share trend and order/delivery momentum
- Gross margin, operating cash burn, capex guidance and path toward profitability in results
- Rare-earth availability, import-policy changes and disclosed component-cost inflation
- Dealer additions, service capacity, new model launches and financing partnerships
- Additional analyst initiations, target-price revisions or IPO-anchor investor disclosures
- Management is likely to emphasize delivery growth, dealer/service-network expansion, localization and gross-margin improvement to defend post-IPO valuation.
- Investors may accumulate selectively on lock-in-related weakness rather than chase brokerage-led price gains.
- Competitors may intensify financing offers, discounts and new-product launches if Ather's higher market visibility improves category demand.
- Ather may accelerate supplier diversification, inventory buffers and domestic sourcing for magnet- and motor-related components.