The brokerage believes India is still in nascent stages of EV transition. When an industry goes through a once-in-a-hundred-years kind of transition, it augurs well to invest early in what could emerge as one of the strong leaders of the transition. ICICI Securities have seen similar stories playing out globally with other leading EV players. The management’s product-focused approach enables the company to be a tech leader in the e-2W space, thus positioning it well to sustain as one of the leaders in the space in the long term.NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.HDFC Securities Institutional EquitiesAther Energy Ltd. has been a product-focused company, which has emerged as one of the tech leaders in the electric scooter space. Its products have been on par, if not superior, to products of market leaders like TVS Motor and Bajaj Auto. While the above-mentioned ICE two-wheeler incumbents have the advantage of established dealer networks, strong supplier relationships, and available cash flows, Ather Energy has been able to compete well at a stable No. 4 position with a retail market share of 13.4% in five months-CY25. With an expanding product portfolio, rapidly expanding dealership network, and improving focus on marketing and advertising, we expect the company to outgrow the industry over the medium term and gain market share. We expect unit economics to improve in the medium term, given the improving economies of scale, better operating leverage, shift from NMC to LFP technology, introduction of the more efficient EL platform, and improving mix of merchandise and accessories. The expansion of its product portfolio (to also include more affordable models) and dealership network is the right ingredient for scaling up. We strongly believe that Ather Energy will remain one of the leading players through the EV transition. It provides a good EV pure play opportunity for investors to invest in the Indian EV transition story. We initiate coverage on Ather Energy with a Buy rating, valuing it at 3.5x EV/sales for a target price of Rs 409.Click on the attachment to read the full report:Galaxy Surfactants Shares Can Rally 34% Says Motilal Oswal, Maintaining 'Buy' — Here's WhyDISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.Users have no license to copy, modify, or distribute the content without permission of the Original Owner.. Read more on Research Reports by NDTV Profit.