A Long Weekend Thread. 🧵🧵🧵
Grab a Coffee ☕️
Let's see what's so interesting about Ather Energy
@atherenergy
Like and Retweet the first tweet for wider reach if you find it useful🙏
@itsTarH @datta_arvind
🧵🧵🧵 👇
Grab a Coffee ☕️
Let's see what's so interesting about Ather Energy
@atherenergy
Like and Retweet the first tweet for wider reach if you find it useful🙏
@itsTarH @datta_arvind
🧵🧵🧵 👇
Automobile industry - disrupting technologically
World getting connected with integration of devices helping making everyday life seamless
Ather Energy revolutionising commute experience with intelligent vehicles
World getting connected with integration of devices helping making everyday life seamless
Ather Energy revolutionising commute experience with intelligent vehicles
SKU's
What's so unique about this scooter?
- Ather 450 has 43 IoT sensors fitted into each scooter, enabling it to obtain granular information on every aspect of the driver experience.
- Full charged vehicle has a TrueRange of 85km/day in Eco Mode. Acceleration of 0-40 kmph in 3.3 sec(Warp mode)
- Full charged vehicle has a TrueRange of 85km/day in Eco Mode. Acceleration of 0-40 kmph in 3.3 sec(Warp mode)
- Touchscreen dashboard IP65 rated(capacity to withstand rains)
- Long Battery Life(designed to last 50,000 Km) Company estimated no replacement needed for ~6-7 yrs
- Ather App equipped with Ride statistics which can help users understand riding behavior.
- Long Battery Life(designed to last 50,000 Km) Company estimated no replacement needed for ~6-7 yrs
- Ather App equipped with Ride statistics which can help users understand riding behavior.
- Ather churning out 100 megabytes of data daily, on every vehicle using Google Cloud. - Innovative updates such as "guide me home lights" and real time ride/energy efficient indicators helps Ather Energy stay ahead of the curve.
- Ather Grid : Public fast charging infrastructure network
Currently spread across over 22 cities and more than 220 locations.
Plans to add 500 more locations by the end of 2022.
Currently spread across over 22 cities and more than 220 locations.
Plans to add 500 more locations by the end of 2022.
- Buyback Assurance
Helps building purchasing confidence for customers who are excited about the product but may have concerns about long-term ownership
Helps building purchasing confidence for customers who are excited about the product but may have concerns about long-term ownership
The company wants to focus more on the more powerful Ather 450 models, which had bigger demand thanks to the price-to-performance ratio. Shows product led mindset.
Partnership with Google
-Google Maps Platform-enabled navigation is a core feature of the scooter.
The Ather 450 performs
Predictive maintenance to fix problems before they happen
-- Structures electricity use for big cost savings
-- Analyzes traffic and road conditions for optimal route options
-- Alerts riders to unoccupied electricity stations in the Ather Grid
Predictive maintenance to fix problems before they happen
-- Structures electricity use for big cost savings
-- Analyzes traffic and road conditions for optimal route options
-- Alerts riders to unoccupied electricity stations in the Ather Grid
Geographies covered:
Currently present in 19 cities with 22 experience centres.
Plans to expand to 42 cities and establish 50 more experience centres by March 2022.
Bengaluru(most popular market for Ather)
Currently present in 19 cities with 22 experience centres.
Plans to expand to 42 cities and establish 50 more experience centres by March 2022.
Bengaluru(most popular market for Ather)
Capex:
Ather has commissioned their second manufacturing facility in Hosur which will take its manufacturing capacity to 400,000 units from its current capacity of 120,000 units.
Ather has commissioned their second manufacturing facility in Hosur which will take its manufacturing capacity to 400,000 units from its current capacity of 120,000 units.
Employees
5 -> 800
5 -> 800
Now, Let's have a look at the Financials!
Revenue
Rs 4.2 Cr(FY19) -> Rs 35.3 Cr(FY20) -> Rs 79.8 Cr(FY21)
Revenue from operations over 3 yrs - 20X 🔼
Rs 4.2 Cr(FY19) -> Rs 35.3 Cr(FY20) -> Rs 79.8 Cr(FY21)
Revenue from operations over 3 yrs - 20X 🔼
Annual Expenditure
Rs 119.2 Cr(FY19) -> Rs 268.7 Cr(FY20)-> Rs 319.5 Cr(FY21)
Annual Expenditure over 3 yrs - 3X 🔼
Rs 119.2 Cr(FY19) -> Rs 268.7 Cr(FY20)-> Rs 319.5 Cr(FY21)
Annual Expenditure over 3 yrs - 3X 🔼
EBIDTA margins
-350.8%(FY20) -> -197.1%(FY21) 🔼
-350.8%(FY20) -> -197.1%(FY21) 🔼
Key takeaways from financials:
-Revenue growth has been superb but hasn't contributed to profitability(cash flows)
-Ather is spending a lot on increasing production capacity and also expanding its EV Charging Network.
- This space is young and has a runway for growth with profitability
-Ather is spending a lot on increasing production capacity and also expanding its EV Charging Network.
- This space is young and has a runway for growth with profitability
Leadership Team
Founded by Swapnil Jain & Tarun Mehta in 2013.
Founded by Swapnil Jain & Tarun Mehta in 2013.
Investors
Electric 2 wheeler Manufacturers
Sales Done with market share
Hero Electric : 34.56%(highest market share)
Ather Energy : 12.13%(3rd in terms of market share)
Sales Done with market share
Hero Electric : 34.56%(highest market share)
Ather Energy : 12.13%(3rd in terms of market share)
Future Outlook
Company plans to improve ownership and daily ride experience with features like Predictive Maintenance, Improved Range prediction, Rider Profiling.
Company also claims to be partnering with companies for innovative revenue models including battery subscription.
Company plans to improve ownership and daily ride experience with features like Predictive Maintenance, Improved Range prediction, Rider Profiling.
Company also claims to be partnering with companies for innovative revenue models including battery subscription.
Size of Opportunity
Valuation of Ather : $ 187 Million(1408 Cr)
Valuation of Ola Electric : $ 5 Billion(37000 Cr)
Valuation of Ather : $ 187 Million(1408 Cr)
Valuation of Ola Electric : $ 5 Billion(37000 Cr)
Sense an opportunity?
- Ather has been in this market for 8 years. They sold almost 3500 scooters in Oct'21(almost 12x increase over the previous yr).
- It is only Ather Energy which has seen a dip in valuation, especially when seen against the fact that Ather is the only EV startup to have a product in the market.
Funny, Isn't it?
Funny, Isn't it?
- The company is highly undervalued even in the primary market imo. Why would a legacy player like HeroMotoCorp otherwise invest so aggressively on a young company?
-Ola electric seems more like a marketing company. Although, it has received over 1 lakh bookings within the first 24 hrs of launch. It will be interesting to see when Ola's scooters actually start hitting the road.
- Initial reviews by Autocar & Zigwheels suggest that the scooter by Ola electric is still not road ready. The scooter continued to accelerate even when the throttle had been let go.
I have been invested in HeroMoto from 2600 levels and will be playing this from a long term perspective(bet proxy bet for Ather Energy)
Have spent 6 hours doing research on this business.
As a token of appreciation for my efforts, would appreciate a like and retweet.
As a token of appreciation for my efforts, would appreciate a like and retweet.
My inspiration for writing threads/ writing in general:
@sahil_vi @soicfinance @itsTarH @Falak_Kalyani @WizardsUnknown @badola_arjun @icanseeyourpix2 @caswapnilkabra @AdityaTodmal @ishmohit1 @VVVStockAnalyst @Arthavruksha12 @caniravkaria
@sahil_vi @soicfinance @itsTarH @Falak_Kalyani @WizardsUnknown @badola_arjun @icanseeyourpix2 @caswapnilkabra @AdityaTodmal @ishmohit1 @VVVStockAnalyst @Arthavruksha12 @caniravkaria
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