Best Autonomous Vehicle Stocks in India 2023
Many auto companies in the world are testing waters for vehicles that can control the steering, acceleration and braking on its own through various sensors etc. Such automobiles are known as autonomous vehicles. The vehicles are currently in different levels of automation, depending on the amount of control that is passed on to the computerised control. The companies that are dabbling in these exciting new technology or autonomous vehicle stocks are betting on a future in which where a human interference wont be needed for driving—vehicles would be able to drive on their own with or without passengers.
List and overview of Top Autonomous Vehicle Stocks to Buy
Tata Elxsi: One of the earliest entrants in the autonomous vehicle system from India, Tata Elxsi has been able to create a niche for itself in design and technology solutions for driverless vehicles. It is trying to impress makers of autonomous vehicle with its algorithmic capabilities. The stock of Tata Elxsi has shown improvement in return on equity since last two year and has got upgrade from brokers in the past three months. However, earnings need to improve to sustain interest from investors.
Mahindra & Mahindra: While M&M has not launched a fully driverless car, it has used many features that show its capabilities to do so in future. Its XUV700 has advanced driver assistance system, which usually the first step in autonomous cars. The company is also doing R&D for autonomous tractors. The stock is near 52-week high and its earnings too have improved, garnering interest from FII/FPIs.
HCL Technologies: The information technology company is focusing on providing technology for autonomous vehicle manufacturers. It is reported to have acquired ASAP Group, a German autonomous vehicle. HCL Technologies stock is near 52-week high and has seen rising interest from FPI/FIIs. The stock, however, has also seen negative breakout below first support.
Tata Consultancy Services: The company has launched TCS Mobility Autonomous Vehicle Solutions Suite that developing such cars. The stock of TCS is near 52-week high and has been above short-, medium and long-term averages too. Shares of India’s biggest software services company has seen upgrades brokers in the past three months.
Tech Mahindra: The company has entered into a tie-up with Anyverse, a data generation firm, for solutions to develop autonomous vehicles. The stock of is near 52-week high and above short-, medium and long-term averages. It has also got upgrades from brokers in the recent past. MFs, however, decreased their shareholding in the company in last quarter.
Infosys: The company is developing solutions for intelligent navigation, remote monitoring and remote surveillance for autonomous vehicles. The stock of Infosys is trading above short and long-term averages and has got upgrades from some brokerages recently. However, the stock also saw a negative breakdown below first support in recent past.
Tata Motors: India’s largest vehicle makers is toying with the idea of fully autonomous features for its Avinya EV platform, apart from dabbling with trucks with similar features and many similar platforms for its Jaguar cars. The stock has shown strong annual EPG growth and earnings too have been improving, earning upgrades from brokers. However, the stock also saw a negative breakdown below first support in the recent past.
Performance Overview of Autonomous Vehicle Stocks in India
Factors to Consider Before Investing in Autonomous Vehicle Stocks in India
Technological advancement: Investors should carefully evaluate a company’s technological capabilities in the autonomous vehicle development. Check if the company owns any patent etc.
Fundamentals: Investment into a stock should be done only after thorough checks into the earnings, debt and other parameters of financial health of a company.
Peer comparison: Invest into a company that has some kind of leverage over its peers and has gained substantial market share.
Client base: A company with a wider client base is better than one that leans heavily on few clients.
Indian autonomous vehicle stocks can be broadly categorised in two – vehicles makers and software companies providing technologies. Indian companies can be enviable partners for companies abroad that are developing such platforms. Investing in autonomous vehicle stocks can help investors grab a pie of the future of automotive, especially in developed countries.
Frequently Asked Questions
Which Indian Companies are investing in Autonomous Vehicle Sector?
Most automakers, parts makers and IT companies are investing in autonomous vehicle sector.
What is the future of Autonomous Vehicle in India?
Autonomous vehicles remain a challenge in India due to congestions on road, but still many companies have taken up the challenge to develop designs suited for the sub-continent.
Is investing in Autonomous Vehicle stocks good idea?
Yes, but all investment should be done with careful dye diligence.
How can I invest in Autonomous Vehicle Stocks using 5paisa App?
First zero in on the autonomous vehicle stocks that you want to invest in and the amount of investment in each of them. Then log into 5paisa app, check the current market prices and then place buy order for the stocks.
DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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