Top 10 Undervalued EV Stocks to Watch in 2025 for Growth

Summary

India EV market is set for rapid growth in 2025, driven by strong government support, rising demand, and a maturing ecosystem. This article highlights 10 undervalued EV stocks—from OEMs (Original Equipment Manufacturer) to battery makers—that offer strong growth potential and analyst backing, making them top picks for forward-looking investors.

India's EV transition is finally finding its footing—and not just in the metros. From scooters in small towns to electric buses in city fleets, the shift is real. While the headlines focus on big-ticket names, there are quite a few undervalued players quietly setting themselves up for long-term growth. If you're someone who likes to get in before the crowd, this list is for you.

Why Invest in EV Stocks?

1. Supportive government policies like FAME II and the PLI scheme are driving momentum.
2. Huge market potential: The EV space in India is expected to grow at over 40% CAGR till 2030.
3. Rising fuel costs are nudging more consumers toward electric mobility.
4. Export play: Indian companies could benefit globally as demand rises for cost-efficient EVs and components.

What Makes an EV Stock Undervalued

• Undervalued doesn’t mean unpopular—it means mispriced. You're looking for stocks with:
• Lower-than-average valuations like P/E or EV/EBITDA
• Solid future earnings potential
• Low institutional ownership (leaves room for future buying)
• Strong return on equity and improving profit margins

What is the EV Market Share in 2025

According to industry trackers and NITI Aayog estimates:

20% of two-wheelers

15% of passenger cars

5% of commercial vehicles

 will be electric by FY25. That puts the overall EV industry close to ₹1.5 lakh crore in value.

Which Metrics Should I Prioritize for EV Stocks?

If you're building a watchlist, prioritize these:

• Revenue and profit margin growth trends
• Battery manufacturing or backward integration
• Partnerships with OEMs or government bodies
• Innovation capabilities (especially around batteries or charging infra)
• Healthy cash flows and minimal debt

Top 10 EV Stocks to Watch in 2025 for Growth

Section 1: EV Stocks in India (as per analyst ratings)

Source: Moneycontrol, Trendlyne, Analyst Consensus Reports (as of Q1 FY25)

Section 2: BUY Analyst Rating (in %)

Source: Bloomberg Consensus, ICICI Direct, HDFC Securities Research (April 2025)

Overview of Best EV Stocks in India

Tata Motors and Mahindra clearly lead the pack—big brands, growing sales, and future-ready models. Sona BLW and Amara Raja are more on the backend side but just as important in the supply chain. Greaves Cotton and Himadri may be smaller, but they're picking up steam with niche plays. If you're looking for exposure beyond cars, Olectra and JBM Auto are solid bets in the electric bus space.

Factors to Consider Before Investing in EV Stocks

• Valuations: Don't pay top dollar for stocks still proving themselves.
• Execution track record: Past delivery often predicts future consistency.
• Supply constraints: Lithium and battery materials remain bottlenecks.
• Policy dependence: Government support is critical—but not always guaranteed.
• Global disruptors: New tech or overseas players could shift the game quickly.

Conclusion

EVs are no longer just a trend—they’re becoming the default for the future of mobility. India is at the cusp of a major shift, and investors who spot early movers could see meaningful upside. But don’t just chase the hype. Look for companies with strong fundamentals, clear execution plans, and staying power. With the right picks, 2025 could be the year your EV portfolio really takes off.

About Sharescart

Sharescart.com is India’s leading platform for investing in pre-IPO and unlisted shares, helping investors discover high-growth opportunities before they hit the mainstream market. Our in-house research team dives deep into private companies and emerging sectors—like EVs—to bring you data-backed insights, not hype.
Whether you're looking to invest in the next breakout company or explore hidden gems in private equity, Sharescart bridges that gap with transparency, tech, and trusted research.