Electrovaya (Toronto: ETA) (OTC: EFLVF) is an under-the-radar battery maker based in Canada that fits into the "green energy" theme, explains Frank Curzio, growth stock expert and editor of Curzio Venture Opportunity.
It’s a tiny company that nearly tripled its sales over the past year. Back in 2015-2016, the company was focused on the electric vehicle (EV) market. When demand for electric vehicles didn’t ramp as expected, Electrovaya shifted its focus to electric forklifts, which it turned out to be a hugely successful pivot.
Electrovaya got its foot in the door by selling its batteries to companies that operate huge warehouses, like Mondelez (MDLZ) and Wal-Mart (WMT). In 2019, the company expanded by teaming up with Raymond Corp., a subsidiary of Toyota and the biggest forklift manufacturer in North America.
In short, Electrovaya found its niche — and it’s starting to dominate it. Last year, sales nearly tripled, growing from $4.9 million to $14.5 million. The vast majority (over 80%) of Electrovaya’s sales came during the second half of 2020. That means the company’s sales boom is likely still in the early stages.
In short, Electrovaya has established its batteries as the standard for the electronic forklift market. It’s a huge deal because the forklift market is surprisingly large — around $4 billion a year.
Put simply, Electrovaya is just scratching the surface of a massive opportunity. Its $15 million in annual sales are less than half a percent of the North American forklift market.
Its products are being used at just 40 locations around North America. When you consider the booming e-commerce market — which relies heavily on shipping products from massive warehouses — there’s a ton of room for future growth.
Longer-term, Electrovaya is already exploring potential opportunities in three other markets: electronic buses, electronic delivery trucks, and robotics. Electrovaya’s batteries have built a strong reputation for safety and reliability. This should give the company a critical advantage as it expands into these early-stage markets.
The shares trade on the Toronto stock exchange, but we’re recommending its OTC (over-the-counter) shares to make sure everyone can invest in this fast-growing company.
Electrovaya has skyrocketed some 300% over the past year. Let’s start by buying a 1/2 position. We want to leave some room to add to our position if the stock pulls back. If the price surges above $2.00, please be patient and wait for the stock to come back down. We’ll add a stop loss after building a full position.
