In the electrifying world of energy storage, India’s battery sector is buzzing with activity. This article is shedding light on the current best battery stocks in India of six key players in the Indian battery market. From industry giants to emerging contenders, these companies are navigating a landscape charged with both challenges and opportunities.
As the demand for energy storage solutions continues to surge, these firms are adapting their strategies to stay ahead. Moreover, they are investing in innovation, expanding product lines, and exploring new markets. Meanwhile, sustainability is becoming a focal point, with eco-friendly technologies gaining traction. Consequently, the future of India’s battery sector is looking bright, powered by the drive for cleaner energy and electric mobility.
Government Initiative
The Indian government is currently supercharging the battery sector with its ambitious push for electric vehicles and solar energy. Through various initiatives and policies, it is creating a conducive environment for battery manufacturers to thrive. Consequently, companies like Exide and Amara Raja are experiencing a surge in demand for their products. Moreover, the government’s emphasis on domestic manufacturing is further bolstering these firms. As a result, battery stocks are gaining momentum in the market.
Notably, the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage is offering ₹18,100 crore in incentives. Meanwhile, the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme is promoting EV adoption.
Additionally, the National Programme on Advanced Chemistry Cell Battery Storage aims to achieve 50 GWh of domestic manufacturing capacity. These initiatives, along with battery swapping policies and standardization efforts, are creating a favorable ecosystem for battery companies to expand and innovate.
Exide Industries
Exide Industries, established in 1947, is powering India’s automotive and industrial sectors. The company is specializing in lead-acid storage batteries for various applications, including automotive, submarine, solar, and industrial uses. Currently employing over 5,000 people, Exide is maintaining a dominant 60% market share in India’s organized battery market.
Consequently, it is solidifying its position as a leader in energy storage solutions. Furthermore, the company is adding lithium-ion and solar batteries to its lineup of products. Exide is also concentrating on sustainability and innovation to fulfill changing demands for energy storage.
The company’s revenue has climbed from ₹15,078 crore in FY23 to ₹16,770 crore in FY24, showcasing steady expansion. Impressively, net profit has surged from ₹823 crore to ₹883 crore during the same period.
The company’s strong distribution network ensures widespread availability of its products across urban and rural markets. Exide is also focusing on expanding its presence in the electric vehicle battery segment, capitalizing on the shift towards cleaner transportation.
Future outlook: Exide’s prospects appear promising as India’s automotive and renewable energy sectors continue to flourish. The government’s push for electric vehicles and energy storage solutions is likely to fuel demand for advanced batteries. Additionally, Exide is expanding its presence in international markets, particularly in developing countries. These factors, combined with Exide’s strong brand equity, suggest a positive trajectory for the company in the coming years.
Key Metrics
| Particulars | Amount |
|---|---|
| Market Capitalisation | ₹ 42,321 |
| Current Market Price | ₹ 501.2 |
| Price to Earnings Ratio | 48.39 |
| ROCE | 9.55% |
| Promoter Holdings | 45.99 % |
| FII Holdings | 13.74% |
Amara Raja Energy & Mobility
Amara Raja Energy & Mobility Established in 1985,is boosting the automotive and industrial industries in India. Under the “Amaron” name, the company produces lead-acid batteries for use in industrial and automotive settings. Amara Raja has about 11,000 workers and a substantial 35% market share in India’s automobile battery business.
It is consequently becoming a formidable rival in the energy storage market. Amara Raja Energy & Mobility Ltd is a significant player in the automotive battery and energy industries. Lead-acid battery manufacture for industrial and automotive applications is the company’s area of expertise. Amara Raja is also exploring energy storage technologies including lithium-ion technology. In the energy and mobility sector, Amara Raja Energy & Mobility Ltd is seeing notable growth.
The company’s revenue has increased from ₹10,390 crore in FY23 to ₹11,260 crore in FY24, reflecting market strength. Net profit has also risen from ₹731 crore to ₹906 crore during this period. Amara Raja is actively investing in R&D to develop innovative energy storage solutions. The company’s focus on sustainability is driving the creation of eco-friendly battery technologies.
Additionally, Amara Raja is expanding its product portfolio, particularly in the automotive and telecom sectors. The company’s strong manufacturing capabilities and diverse product range are helping it capture new market opportunities. Amara Raja is also exploring partnerships to enhance its technological capabilities and market reach.
Future outlook: Amara Raja’s future looks promising as global demand for energy storage solutions rises. The company’s investments in new technologies and capacity expansion are likely to pay off. Moreover, Amara Raja’s efforts in sustainable practices align with growing environmental concerns, potentially opening new market opportunities.
Key Metrics
| Particulars | Amount |
|---|---|
| Market Capitalisation | ₹ 28,392 Cr. |
| Current Market Price | ₹ 1,551 |
| Price to Earnings Ratio | 30.2 |
| ROCE | 18.7 % |
| Promoter Holdings | 32.9 % |
| FII Holdings | 23.8 % |
HBL Power Systems
HBL Power Systems, established in 1977, is powering critical sectors with specialized batteries. The company is producing nickel-cadmium batteries, lead-acid batteries, and power electronics. HBL is employing around 2,000 people across its manufacturing facilities. While its market share is smaller, it is carving a niche in specialized power solutions for defense and aerospace sectors.
HBL Power Systems is experiencing remarkable growth in the power systems sector. The company’s revenue has surged from ₹1,369 crore in FY23 to ₹2,233 crore in FY24, reflecting strong market demand. Net profit has also increased significantly from ₹98 crore to ₹280 crore during this period.
HBL is focusing on expanding its presence in the renewable energy and railway electrification segments. The company is investing in advanced technologies to enhance its product offerings. Additionally, HBL is strengthening its position in the defense electronics sector. The company’s diverse product portfolio and strong engineering capabilities are driving its growth. HBL is also exploring opportunities in international markets to further expand its business.
Future outlook: HBL Power Systems’ future appears bright as demand for power solutions continues to grow. The company’s focus on technological advancements and market diversification positions it well for sustained growth. HBL’s expertise in specialized power systems could open up new opportunities in emerging sectors.
Key Metrics
| Particulars | Amount |
|---|---|
| Market Capitalisation | ₹ 18,431 Cr. |
| Current Market Price | ₹ 665 |
| Price to Earnings Ratio | 56.3 |
| ROCE | 34.4 % |
| Promoter Holdings | 59.1 % |
| FII Holdings | 4.66 % |
Also read…
Eveready Industries India
Eveready Industries, dating back to 1905, is illuminating homes across India. The company is manufacturing dry cell batteries, flashlights, and LED lighting products. With approximately 2,500 employees, Eveready is maintaining a leading 50% market share in the Indian dry cell battery segment. Consequently, it is remaining a household name in portable power solutions.
The company’s revenue has slightly decreased from ₹1,328 crore in FY23 to ₹1,314 crore in FY24, reflecting market pressures. Net profit has improved from ₹28 crore to ₹67 crore during this period. Eveready is actively working on restructuring its product portfolio to focus on high-margin segments.
The company is investing in marketing initiatives to strengthen its brand presence. Additionally, Eveready is exploring new product categories to diversify its revenue streams. The company’s strong distribution network continues to be a key asset. Eveready is also implementing cost-optimization measures to improve profitability.
Future outlook: Eveready’s future depends on its ability to innovate and adapt to changing market dynamics. The company’s brand strength and distribution network provide a solid foundation for recovery. Eveready’s focus on product diversification and operational efficiency could lead to improved performance in the coming years.
Key Metrics
| Particulars | Amount |
|---|---|
| Market Capitalisation | ₹ 3,417 Cr. |
| Current Market Price | ₹ 470 |
| Price to Earnings Ratio | 48 |
| ROCE | 16.2 % |
| Promoter Holdings | 43.2 % |
| FII Holdings | 3.68 % |
Panasonic Energy India Company
Panasonic Energy India Company is a subsidiary of the global electronics giant Panasonic. The company produces a wide range of electrical and electronic products, including batteries. Panasonic is steadily growing its market presence in India’s consumer electronics and battery segments. The company specializes in manufacturing and marketing dry cell batteries and lighting products. Panasonic Energy India is known for its high-quality, long-lasting battery solutions.
Panasonic Energy India Company Ltd is showing modest growth in the energy solutions sector. The company’s revenue has increased from ₹253 crore in FY23 to ₹292 crore in FY24, indicating market stability. Net profit has improved from a loss of ₹11 crore to a profit of ₹12 crore during this period.
Panasonic Energy is focusing on developing eco-friendly battery solutions for various applications and is one of the best battery stocks in India. The company is leveraging its global expertise to introduce innovative products in the Indian market. Additionally, Panasonic Energy is strengthening its presence in the automotive battery segment. The company’s commitment to quality and technological advancement is helping it maintain customer trust. Panasonic Energy is also exploring partnerships to enhance its market reach.
Future outlook: Panasonic Energy India’s future looks promising as demand for reliable energy solutions grows. The company’s global backing and focus on innovation position it well for future opportunities. Panasonic’s expertise in advanced battery technologies could drive growth in emerging sectors like electric mobility.
Key Metrics
| Particulars | Amount |
|---|---|
| Market Capitalisation | ₹ 394 Cr. |
| Current Market Price | ₹ 525 |
| Price to Earnings Ratio | 29.8 |
| ROCE | 16.0 % |
| Promoter Holdings | 58.1 % |
| FII Holdings | 0.00 % |
Indo National
Indo National, established in 1972, is energizing devices under the “Nippo” brand. The company is manufacturing dry cell batteries, rechargeable batteries, and torches. With around 600 employees, Indo National is holding a respectable market share in the dry cell battery segment. It is continually expanding its product range to meet evolving consumer needs.
The company’s revenue has increased from ₹572 crore in FY23 to ₹641 crore in FY24, showing market resilience. Net profit has improved from a loss of ₹8 crore to a profit of ₹15 crore during this period. Indo National is diversifying its product portfolio beyond batteries to include lighting and household electrical products.
The company is investing in marketing initiatives to strengthen its brand presence. Additionally, Indo National is expanding its distribution network to reach more consumers. The company’s focus on quality and affordability is helping it compete effectively in the market. Indo National is also exploring export opportunities to drive growth.
Future Outlook: Indo National Limited’s future appears positive as the demand for batteries and flashlights continues to grow in India. The company’s strong brand presence with “Nippo” and its diversification into other consumer products position it well for steady growth. Indo National’s focus on expanding its distribution network and exploring new product categories could drive future opportunities. The increasing adoption of portable electronic devices and the push for rural electrification in India may further boost demand for the company’s core products.
Key Metrics
| Particulars | Amount |
|---|---|
| Market Capitalisation | ₹ 455 Cr |
| Current Market Price | ₹ 606 |
| Price to Earnings Ratio | 3.25 |
| ROCE | 8.22 % |
| Promoter Holdings | 65.4 % |
| FII Holdings | 0.00 % |
Conclusion
The Indian battery and energy sector is navigating a dynamic landscape of challenges and opportunities. Companies like Exide Industries and Amara Raja are showing strong growth, while others like Eveready and Panasonic Energy are working to overcome challenges. HBL Power Systems and Indo National are demonstrating resilience and adaptability.
These companies are investing in R&D, sustainability, and market expansion to drive future growth. The sector’s future looks promising, driven by increasing demand for energy storage solutions and the shift towards electric mobility. However, success will depend on innovation, adaptability, and the ability to meet evolving consumer needs in this rapidly changing industry.
Which other battery stocks do you feel will benefit from the government’s push for EV? What can be the major challenges for the battery sector in the future? Comment your answers below.
Written By Dipangshu Kundu
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks, also get updated with stock market news, and make well-informed investments.
The post Best battery stocks in India to add to your watchlist in 2024! appeared first on Trade Brains.
