Muted debut, rich valuations: Can Ather Energy override early bumps to deliver long-term gains?

As anticipated, Ather Energy shares had a lacklustre market debut, with continued selling pressure post-listing. The weak start was attributed to limited investor interest in the IPO, expensive valuations, and subdued market sentiment. The stock is currently trading 5% below its issue price at Rs 309 on the NSE.

Despite the IPO being subscribed only 1.04 times, analysts remain positive about Ather’s long-term prospects, citing its strong brand, unique EV ecosystem, and expansion plans. However, they warn that profitability may remain elusive in the near term due to intense competition and elevated operational expenses.