Electrovaya (ELVA)
Strong Top and Bottom line Growth In This Hot Thematic
I was running a deep value screen for balance sheet strength, good sales growth, recent earnings surprise and came across Electrovaya (ELVA). It's a new one to me in the lithium-ion battery industry.
In 2025, Electrovaya grew sales 43% YoY (year over year) and had positive adjusted EBITDA and net income. Last quarters sales grew 39% YoY and they were net profitable $0.02 vs $(0.01) YoY. Gross margin expanded a little too and they have had positive cash flow from operations the last two quarters to boot. They had the eleventh consecutive quarter of positive adjusted EBITDA. The trend of net profitability is set to continue.
What makes this especially compelling is the earnings trajectory. EPS is forecasted at $.15 this year growing 66% YoY. 2025 EPS was $.09 per share vs $(0.04) in 2024. Next years EPS is forecast at $.32 for over 100% growth YoY.
The stock is trading 55x this years EPS forecast and just 25x next years earnings. For a growth stock this is growth at a reasonable price. Especially if sales accelerate.
Their batteries have the highest energy densities of batteries used in the material handling industry. The higher energy density allows industrial vehicles to operate longer between charges, maximizing operational uptime.
Their focus has been on the industrial and transportation markets. Material-handling electric vehicle battery sales have been the large bulk of sales. They went after the material handling sector first because they can afford the capex.
They’ve deployed over 10,000 battery systems in use at some of the world’s largest companies’ distribution center networks.
They are diversifying into other segments like grid connected and behind-the-meter energy storage too. I’m intrigued by the potential for some accelerated revenue growth as they diversify into other industries and expand production into new verticals as planned. They are expanding manufacturing capacity in Jamestown, NY.
They are making next-generation 800V DC energy storage solutions targeting robotics and data center infrastructure.
I’m super bullish on the electrification and energy storage thematic over the long-term. So, this company checks multiple boxes for me on the quantitative and qualitative side even not being a net-net.
In a perfect market for new positions there are lots of deep values (sub NCAV or NTAV). I just haven’t been seeing them in the current market. When I find them I will always share them. In the meantime, I will share my favorite ideas as they come about.
I’m beginning to do some research on Electrovaya (ELVA). This is just a brief initial post to let you know I’m working on this one now. I will put up a full write-up on it soon.
Thanks for your support,
Mark
Full Disclosure: Currently no position in ELVA