1. At a Glance
India’s largest pure-play electric bus maker, Olectra Greentech Ltd, has gone from polymer insulators to steering the EV revolution. But at a P/E of 71x, is it really charging ahead—or just burning through optimism faster than a lithium-ion battery?
2. Introduction with Hook
Imagine you bought a bus ticket… for ₹1,212. That’s what investors are doing by hopping on the Olectra Greentech express. But this bus doesn’t just go from Point A to Point B—it goes from Hyderabad to “Hyper-valued” territory.
- Delivered 2,448 e-buses and 51 e-tippers, clocking 30+ crore kilometers.
- 123% CAGR in profit over 5 years. Tesla of Telangana? Easy now.
3. Business Model (WTF Do They Even Do?)
Olectra has two core business lines:
1. EV Division (91% of revenue in FY25):
- Builds and delivers electric buses in various sizes (7m, 9m, 12m).
- Customers: MSRTC, BEST, TSRTC, PMPML—aka every government bus department with a PowerPoint budget.
2. Insulators Division (shrinking relevance):
- Originally made composite polymer insulators. Still exists… kind of like Orkut.
Bonus: The company is entering electric trucks and tippers. Trucks may carry freight, but the expectations investors carry? Heavier.
4. Financials Overview
Revenue Growth
- FY20: ₹201 Cr
- FY25: ₹1,802 Cr
Net Profit - FY20: ₹14 Cr
- FY25: ₹139 Cr
Revenue CAGR (5Y): 55%
Profit CAGR (5Y): 123%
ROE (FY25): 14.2%
ROCE (FY25): 20.4%
Smells like success… until you see the valuations.
5. Valuation
P/E: 71.7x
P/B: 9.48x
Fair Value Estimate Range: ₹700–₹950
Unless earnings double again soon, this stock’s price is already cruising in an AC bus with gold-plated seats.
Methods Used:
- DCF based on FY25 EPS ₹16.92 and expected 30% growth → FV ₹900
- Relative P/E based on peers (M&M, Tata Motors EV biz) → FV ₹720
- EV/EBITDA comparisons → FV ₹750–₹950 range
6. What’s Cooking – News, Triggers, Drama
- Chairman & MD Resigned (July 2025): Oh boy. The bus didn’t lose its wheels, but the driver jumped off.
- Acquisition in Evey Trans: Maintains 26% stake—strategic link to BEST e-bus contracts.
- Expanding into Electric Trucks: More wheels = more revenue?
- Cost of borrowing is rising: Which is wild, because they already run on electricity.
7. Balance Sheet
| Year | Equity | Reserves | Debt | Total Liabilities | Total Assets |
|---|---|---|---|---|---|
| FY23 | ₹33 Cr | ₹807 Cr | ₹134 Cr | ₹1,557 Cr | ₹1,557 Cr |
| FY25 | ₹33 Cr | ₹1,016 Cr | ₹255 Cr | ₹2,171 Cr | ₹2,171 Cr |
Key Points
- Debt has doubled in 2 years.
- Reserves growing faster than Twitter gossip.
- Solid asset base, but CapEx to fund truck/tipper dreams could stretch it.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY23 | -₹10 Cr | -₹38 Cr | ₹35 Cr | -₹13 Cr |
| FY25 | ₹141 Cr | -₹225 Cr | ₹83 Cr | -₹1 Cr |
Takeaway:
They’re generating good operating cash, but investing aggressively. Expansion = 🔥, but liquidity = 🧊
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 13% | 15% | 20% |
| ROE | 8% | 9.4% | 14.2% |
| Debtor Days | 211 | 162 | 140 |
| Cash Conv. Cycle | 79 | 86 | 38 |
| Debt/Equity | 0.17 | 0.13 | 0.25 |
Verdict: Margins improving, working capital under control, but leverage slowly ticking up.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | Op Profit | Net Profit | OPM | NPM |
|---|---|---|---|---|---|
| FY23 | ₹1,091 Cr | ₹141 Cr | ₹67 Cr | 13% | 6.1% |
| FY25 | ₹1,802 Cr | ₹261 Cr | ₹139 Cr | 14% | 7.7% |
Trend:
The company is compounding earnings, but not margin expansion—probably due to costlier inputs + interest burden.
11. Peer Comparison
| Company | CMP | P/E | ROE | Sales (Cr) | OPM |
|---|---|---|---|---|---|
| Tata Motors | ₹674 | 8.8 | 28% | ₹4,39,695 | 12.6% |
| M&M | ₹3,092 | 29.7 | 18% | ₹1,59,211 | 19.1% |
| Force Motors | ₹16,683 | 40.2 | 20.7% | ₹8,072 | 13.5% |
| Olectra | ₹1,212 | 71.7 | 14.2% | ₹1,802 | 14% |
TL;DR: You’re paying luxury sedan prices for a mini-bus.
12. Miscellaneous – Shareholding, Promoters
| Entity | Jun 2024 | Mar 2025 |
|---|---|---|
| Promoters | 50.02% | 50.02% |
| FIIs | 7.61% | 5.38% |
| DIIs | 0.19% | 0.45% |
| Public | 42.19% | 44.16% |
Interesting Nuggets:
- FII exit indicates cooling overseas confidence.
- Public shareholders keep piling in—retail hopes drive the bus now.
- Over 5.2 lakh investors onboard.
13. EduInvesting Verdict™
Olectra is no longer just a bus-maker. It’s a proxy bet on India’s electric public transport push. However, with the stock priced for a future where every Indian bus runs on unicorn dreams and lithium fumes, the expectations are… ambitious.
Management churn, debt uptick, and capital-intensive dreams of e-trucks mean this company is high on potential—and risk. Yes, it has grown fast. Yes, it’s got government backing. But yes, it’s priced like it already won 10 Bharat Mobility awards in a row.
So if you’re buying now… better pack a lunch. This journey might be long—and bumpy.
Metadata
– Written by EduInvesting Research | 15 July 2025
– Tags: Olectra, EV Stocks, Electric Bus, Hyderabad, High P/E, Mobility India, PSU Orders, Evey Trans
