Midas touch: This stock turned Rs 1 lakh into Rs 5.91 lakh in less than a year! Is there some more steam left in this stock?

Olectra Greentech has been a stock to watch out for as it jumped nearly 493 per cent on a YTD basis. It has been a stock with ‘Midas touch’ as a meager amount of Rs 1,00,000 invested in this stock at the end of 2020 would have turned to Rs 5,91,675 in less than one year, isn’t it surprising?! 

The stock is once again in the limelight on Wednesday after it announced that Evey Trans Private Limited (EVEY) has received a letter of award from one of the state transport corporations for 100 electric buses under the FAME-II scheme of the Government of India.   

This order, for the supply of 100 electric buses, is on a gross cost contract (GCC)/OPEX model basis for a period of 12 years (contract period). The value of this contract is approximately Rs 140 crore to the company.   

EVEY shall procure these buses from Olectra Greentech Limited, which shall be delivered over a period of 12 months. The maintenance of these buses shall also be undertaken by Olectra during the contract period. These transactions between the company and EVEY are to be considered as related-party transactions and shall be on an arm's length basis.   

With this, the total order book of Olectra for electric buses against the above and earlier orders are around 1,530 electric buses after considering the deliveries already made.