As the crude oil prices move north, market expert Siddharth Sedani recommends a counterplay to investors. He picks the Electric Vehicle as a strong category for investment which has recorded 85 per cent imports in India. Over 3 lakh EVs have been sold so far, he said. 

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The sales of EVs are expected to reach 60 lakh by 2027, he opined. 

He said that there was now a growing focus from the Government of India (GOI) towards investments in alternatives to crude oil due to its ever-increasing prices.

Keeping today’s theme in mind, here are the recommendations given by market expert Sedani:

TATA Power

According to Sedani, it is the natural beneficiary amongst the counterplayers of crude oil.

He gave a target of Rs 273. He recommended an allocation of 30 per cent on an expected return of 20 per cent. The company has a fully-integrated power plant with a strong business of distribution and renewable energy. Apart from this, the company has plans of making power stations more than 1 lakh by 2025. The company owns a state-of-the-art thermal power plant of around 4000 MW in Mundra. They also have an order book of Rs 1000 crore for their solar rooftop set-up. 

KPI Technology

Sedani suggests a target of Rs 650 for this company and an allocation of 30 per cent with an expected return of 17 per cent. This company makes software for EV maker companies. This company works in the AI as well as digital solutions sectors for various countries, including the US, UK, China, Japan, and others.

Praj Industries

Sedani gave a target of Rs 462 for this company, with an allocation of 20 per cent on a return of 29 per cent. He said that the company is a domestic market leader. It’s a supplier of ethanol plants.

Neogen Chemicals

Sedani recommended a target of Rs 1810, with an allocation of 20 per cent on a return of 11 per cent. The company is a manufacturer of chemicals used for biomin and lithium-based batteries. The batteries are used for EV, and the capacity for these batteries is expected to grow.

According to the expert, the companies mentioned above will grow if the investors keep a perspective of 6 months to 12 months.

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