The official EV push could boost your returns from these 4 stocks by 26%

New Delhi: The promises laid down by Union Budget 2019 showed the government's keenness to give a fillip to electric vehicles (EVs) and plod domestic manufacturers to make the transition. The government seems to be relying on creating demand for EVs as it is planning to rollout engines having 3W by 2023, 2W by 2025 and 4W by 2030 to replace the current combustible engine.

This rhythm is sure to propel the stocks of some entities in the next few years. Here are the companies whose shares are expected to deliver up to 26 percent return in long-term:

Tata Chemicals

Current market price: Rs 600

Target: Rs 730

Return: 22 percent

Tenure: Long term

Sensing which way the wind is blowing, Tata Chemicals is soon planning to enter the lithium-ion battery business, where it is planning to build an integrated business for the manufacturing of cells and battery, and battery recycling.

As the government pushes and encourages EVs on a priority, Tata Motors has pulled up its socks to fit into the future of e-mobility.

Hero MotoCorp

Current market price: Rs 2,570

Target: Rs 3,200

Return: 25 percent

Tenure: Long term

Hero MotoCorp has already made a sizeable strategic investment (32.31 percent) in electric two-wheeler manufacturer startup Ather Energy, based out of Bengaluru. The newbie is planning to expand to newer markets and has already launched a range of path-breaking and innovative electric scooters. In the future, the company is planning to expand its reach to about 50 cities across the country in five years and also worldwide.

Ather is also going to set up a new manufacturing facility with a capacity to manufacture one million vehicles a year. Apart from making two-wheelers, the start-up is also looking to set up 6,500 fast charging points, right at a time when the government is also planning to put the EV infrastructure in place under FAME II scheme to prepare the ground for the rollout.

Himadri Speciality Chemical

Current market price: Rs 95

Target: Rs 120

Return: 26 percent

Tenure: Long term

HSCL comes into the picture as it manufactures advanced carbon that is used in the making of anodes for Li–ion batteries which is likely to witness exponential growth given the rising demand from portable electronic equipments, electric vehicles and energy storage systems.

The company is also planning to add an additional capacity of 20,000 MTPA for ACM plant to be used for lithium ion batteries. The project is expected to be commissioned in phases, first 5,000 tonnes capacity to come up by H1FY20 and the rest by Q4 FY20.

This is going to boost the company's operating margins and improve its return ratio as well. Owing to the immense potential for Lithium-ion batteries, it is estimated that the demand for anode material will augment at 20-25 percent CAGR over the next two years, providing HSCL significant headroom for growth.

Greaves Cotton

Current market price: Rs 130

Target: Rs 155

Return: 20 percent

Tenure: Long term

To make itself future-ready, Greaves Cotton is focusing on transforming itself into a "fuel-agnostic" player and providing a one-stop-shop for the EV buyer. Armed with a new product catalog of high-speed electric vehicles at Ampere (holds 72.11 percent) and 2X growth in CNG engines for 3W, it is transforming into a formidable B2C Player in Last Mile Mobility. As of now, it sells 2W Ampere vehicles and 3W e-rickshaws from about 120 retail outlets, integrating all 300+ retail outlets to sell the entire range of products, including Ampere.

As FAME II backs E 2W, Ampere's position is strengthened in the slow speed segment. But localisation norms could throw a surprise.