Ather Energy IPO Review

Ather Energy is a pioneer in the Indian electric two-wheeler (“E2W”) market and a pure play EV company that sells E2Ws and the associated product ecosystem, comprised of the software, charging infrastructure and smart accessories, all of which are conceptualised and designed by them in India.

The company is led by Promoters, TARUN SANJAY MEHTA and SWAPNIL BABANLAL JAIN, both have over 10 years of experience in the electric vehicles sector.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 16,174.00 Million, ₹ 17,891.00 Million, ₹ 18,018.00 Million and ₹ 4,138.00 Million respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ -3,700 Million, ₹ -8,240.00 Million, ₹ -6,867.00 Million, and ₹ -2,550.00 Million, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ -5,779.00 Million, ₹ -10,597.00 Million, ₹ -8,645.00 Million, and ₹ -3,441.00 Million respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ -47.00 and post-issue EPS of ₹ -28.45 for FY24. The pre-issue P/E ratio is -6.83x, while the post-issue P/E ratio is -11.28x against the Industry P/E ratio is 39x. The company's ROCE for FY24 is -118.69%, ROE for FY24 is -1.83% and RoNW is -194.00%. The Annualised EPS based on the latest financial data is ₹ -30.66 and PE ratio is -10.46x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Ather Energy showing listing gains of 0.00 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Ather Energy Limited IPO for Listing gain or long term investment purposes.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.