06-05-2025
Ather Energy gives up listing gains, slides 4% after weak debut. Hold or sell?
Electric two-wheeler maker Ather Energy ended nearly 4% lower on its market debut Tuesday, giving up early gains despite a modest listing premium. The stock opened at Rs 328 on the NSE, up 2.2% over its issue price of Rs 321, but slipped over 4% to an intraday low of Rs 308.95 amid weak market Rs 2,981-crore IPO was subscribed 1.43 times and had seen subdued demand across categories. Analysts attributed the weak performance to aggressive pricing and sector headwinds.'As expected, we see a flat listing, which was justified given the aggressive valuation—especially when benchmarked against peer OLA Electric,' said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.'The electric two-wheeler segment remains highly competitive and capital-intensive, with most players, including market leaders, still struggling to turn profitable. We recommend a 'HOLD' only for risk-taking investors comfortable with short- to medium-term volatility. Conservative investors should wait for the stock to settle at more reasonable valuations," he added that the EV 2W space remains in a high-growth but high-burn phase, with potential for sharp swings in both business performance and stock in 2013, Ather designs its scooters in-house and operates over 2,600 charging stations across 300 cities. Its product line includes the Ather 450 and the new family-focused Ather company plans to use IPO proceeds to fund a new factory in Maharashtra, repay debt, and invest in R&D. For FY24, Ather posted a net loss of Rs 1,059 crore on Rs 1,754 crore revenue, with EBITDA margins at -36%.While Ather enjoys strong brand equity and long-term growth potential, analysts caution that continued cash burn, pricing pressure, and market competition could keep the stock volatile in the near The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
