The Telangana State Road Transport Corporation's Letter of Awards and Its Magic
After the company announced that Evey Trans Private Limited (EVEY) had received two Letters of Awards (LOAs) from the Telangana State Road Transport Corporation (TSRTC) for 550 Electric Buses, 500 of which would be used for intra-city operations and 50 for inter-city operations, it has gained 24% over the past three trading days.
An electric bus manufacturer's stock price has increased 68% in ten trading days.
Today's business news: On the strength of encouraging corporate announcements, shares of Olectra Greentech kept moving higher, rising 15% to Rs 647.95 on the BSE on Thursday during intraday trading in an otherwise sluggish market. The S&P BSE Sensex, in contrast, was down 0.50 percent at 60,053 at 17 PM.
In the meantime, Olectra Greentech's stock price has increased 68% over the last ten trading days after the business debuted its first hydrogen-powered bus in technical cooperation with Reliance Industries (RIL).
Due to ongoing rises in the price of diesel, public and private transportation fleets are predicted to adopt electric buses early. Fuel costs between 40% and 50% of the cost per kilometer; therefore, a rise in diesel prices will have a significant negative influence on the operation.
Convergence Energy Services Limited (CESL) was ordered by NITI Aayog to purchase an extra 50,000 electric buses over the next few years. This percentage represents less than 10% of all buses currently on the road in India. In addition to running city buses, the State Transport Undertakings (STUs) are also engaged in intercity operations. The adoption of electric cars is also appealing to private operators, mufassil operators, school bus operators, airport transfers, and pilgrim or tourist operators, among others (EVs). According to the company's FY22 annual report, this is anticipated to fuel a significant increase in demand for EVs in the ensuing years.
Although the benchmark index saw a 10% climb over the past year, the benchmark stock only increased by 2%, underperforming the market. News sources mentioned the company reached a record high of Rs 940 on December 16, 2021,.
Source :- https://www.businessworld.in/
