This stock became the rocket of EV sector! 275% return in 1 year, now Nomura increases target price to Rs 1,470

Business Desk – Ather Energy, a leading company in the electric vehicle (EV) sector, is once again on the radar of investors. Global brokerage Nomura has maintained its ‘Buy’ rating on the company and increased the target price from Rs 1,120 to Rs 1,470. After the release of the report, strong buying was seen in the company’s shares on Thursday and it was seen trading at around Rs 1,232 with a rise of 2.73%.

Why is Nomura seeing big growth?

Nomura believes that the electric two-wheeler market in India will grow at a rapid pace in the coming years. The EV promoting policies of the Central and State Governments, increasing interest of customers and improvement in charging infrastructure are expected to give major benefits to this sector.

According to the brokerage, the share of electric two-wheelers in the country may increase from around 6.5% by FY 2026 to around 19% by FY 2030. Earlier this estimate was 16%. This means that between the financial year 2026 and 2030, the EV two-wheeler market may see a growth of about 40% CAGR.

Ather Energy will get the biggest benefit

Nomura says that Ather Energy is a company completely focused on electric two-wheeler business, hence it can get the most benefit from this growth. According to the brokerage, the company has maintained around 18% market share in FY 2026. However, at present the company is facing some challenges related to supply.

Cheap electric scooter and new plant will become game changer

According to the report, Ather Energy will launch an affordable electric scooter under its EL platform in the third quarter of financial year 2027. Along with this, the company’s new manufacturing plant will also start. With this, the company will be able to make a strong hold in the price segment of Rs 1 lakh to Rs 1.25 lakh. This segment accounts for about 45% of the entire electric two-wheeler market. Nomura believes that the success of the company’s new motorcycle platform in the future could lead to better performance than its estimates.

Brokerage increased sales estimates

In view of the better outlook, Nomura has maintained the company’s sales estimate for FY 2027 at 3.99 lakh units, which is 53% higher on an annual basis. At the same time, the estimate for financial year 2028 has been increased from 5.10 lakh units to 6.22 lakh units. Apart from this, the sales of the company are estimated to be 8.24 lakh units in the financial year 2029, which will be 32% more on annual basis.

Commodity is expensive, still earnings can increase

Nomura says that the product mix is ​​likely to remain a bit weak, but the company may increase its average selling price (ASP) by about 2%. With this, some of the burden of rising commodity costs will be passed on to the customers and the company’s margins will remain better.

Share gave more than 275% return

On Thursday, Ather Energy shares were seen trading at around Rs 1,232 with a rise of Rs 32.70 i.e. 2.73%. During trading it also made an intraday high of Rs 1,234. It has increased by about 3% in 1 week. Gave a return of approximately 19.5% in 1 month. In the last 1 year, investors have got excellent returns of more than 275%. After the positive report of Nomura, Ather Energy is once again in the news in the market. However, before investing in any share, assess your risk appetite and if necessary, consult a financial advisor.