HSBC Initiates Coverage On Ather With 'Buy' Rating

Shares of Ather Energy jumped almost 4% to INR 358.05 in the morning trade on the BSE after HSBC initiated coverage on the electric two-wheeler manufacturer with a ‘Buy’ rating.

The brokerage gave Ather a target price (TP) of INR 450, a 30% upside from its last closing price.

Calling it a good company in a tough industry, the brokerage report said that Ather’s product quality and technology leadership are difficult to replicate even for rivals with deep pockets.

After the surge in its stock price, Ather’s market capitalisation stood at INR 12,695.29 Cr with more than 20 Lakh shares traded hands on the exchanges by 12:47 PM.

The stock also jumped on the back of the Department for Promotion of Industry and Internal Trade (DPIIT) signing a Memorandum of Understanding (MoU) with Ather Energy to strengthen EV manufacturing and the clean mobility ecosystem.

Under the agreement, DPIIT and Ather Energy will focus on strategic mentorship for deep-tech startups, infrastructure support for startups in the EV value chain, joint innovation programs such as the Bharat Startup Grand Challenge, co-hosted talent and skill development initiatives, and participation in events like Startup Mahakumbh along with on-ground exposure visits.

Ather made its stock market debut in May with its shares listing at a 1.57% premium on the BSE. Ather’s shares listed at INR 326.05apiece against the IPO issue price of INR 321.

On the NSE, the stock opened at INR 328, a 2.18% premium over the IPO price.

Founded in 2013 as an IIT Madras incubated startup, Ather is one of the leading escooter OEMs in India competing with Ola Electric, Bajaj Auto, TVS Motor, Hero MotoCorp, Honda, and others.

At the time of writing, Ather was trading 1.3% lower at 340.85, while the Benchmark indices were in Green. NSE Nifty was 0.15% up at 24,857.10 and BSE Sensex was 0.18% at 81,486.87 at 12:47 PM.

(The story will be updated soon)

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