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Maharashtra Environment Minister Aaditya Thackeray on Monday announced that the entire fleet of Brihanmumbai Electric Supply and Transport (BEST) will become electric by 2028. The minister went on to add that entire BEST buses will run either on electrical power or on hydrogen fuel energy cells by the given time frame.

After this announcement, stock market experts have become highly bullish on three auto stocks — Tata Motors, Olectra Greentech and JBM Auto. They said that BEST double-decker buses getting replaced by electrical or hydrogen fueled business will create huge business for these three auto companies. They advised investors to buy these stocks, expecting short-term sentimental to long-term investment gains.

Aaditya Thackeray announced the Maharashtra government's decision on twitter. "The @myBESTBus has 386 EV buses currently and we are looking at 1900 EV buses & 200 double-decker buses, converting 50% fleet to electric by 2023 & 100% by 2028. @WRICitiesIndia & GiZ will optimize a smooth transition for the consumer and last-mile connectivity for BEST," he tweeted.

Speaking on the impact of this Maharashtra government's decision; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "After this announcement, there will be huge business opportunities coming in for the electric vehicle manufacturers. Since, electric buses will require charging stations too, companies like Tata Power will also get benefit of this. So, in my opinion, stocks that are going to remain in focus due to this Maharashtra government's decision would be Tata Motors, Olectra Greentech and JBM Auto."

On stocks that one can buy after this Maharashtra government's decision; Sumeet Bagadia, Executive Director at Choice Broking said, "One can buy and hold Tata Motors shares at CMP for 400 target maintaining stop loss at 330. Olectra Greentech shares can be bought at CMP for short-term target of 500 to 530 maintaining stop loss at 450. Likewise, an investor can buy JBM Auto shares at CMP for 580 to 600 target maintaining stop loss at 525."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

ABOUT THE AUTHOR

Asit Manohar

Chief Content Producer at Live Mint Digital Team
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