The Best Battery Stocks in India for 2024: Energizing Investments

by B2B Desk 2024-07-15 11:21:13

The energy storage industry is experiencing remarkable growth, driven by the global shift to green energy and the rising demand for electric vehicles. India’s ambitious target of achieving net-zero emissions by 2070 underscores the critical importance of the battery sector in this transformation. This landscape presents a valuable opportunity for investors to diversify their portfolios by considering Best battery stocks in India.

Batteries power many everyday devices, from TV remotes and toys to electric vehicles, yet they often go unnoticed despite their essential role. However, with India’s increasing emphasis on renewable energy, the demand for batteries has skyrocketed. As the nation progresses toward a sustainable future, batteries are becoming indispensable for energy infrastructure and transportation systems. This article will highlight some of the leading battery stocks in India based on their investment returns and provide a deeper insight into the battery sector's dynamics.

Eveready Industries India Ltd

Eveready Industries India Limited operates in the fast-moving consumer goods (FMCG) sector, specializing in products like dry cell and rechargeable batteries, flashlights, packet tea, and general lighting items. As of June 10th, 2024, the company holds a market capitalization of Rs 2,435.02 crore. It has achieved a return on investment (ROI) of 9.06%, reflecting its efficiency in generating returns relative to its investment. Additionally, the company maintains a net profit margin of 5.07%, indicating its ability to convert sales into actual profit after accounting for all expenses. These metrics underscore Eveready's stable performance and position within the competitive FMCG market, particularly among battery stocks in India. With its strong foothold in the battery segment, Eveready continues to be a key player in the industry.

Panasonic Carbon India Co Ltd

Panasonic Carbon India Co Ltd, a subsidiary of Panasonic Corporation, Japan, was established in 1982. Specializing in the production of carbon rods, crucial components for dry cell batteries, it holds a unique position as India’s exclusive manufacturer of high-quality carbon rods.

As of June 3rd, 2024, Panasonic Carbon India Co Ltd boasts a market capitalization of Rs. 247.92 crore, with its stock closing at Rs. 511.10. The company maintains a price-to-earnings (PE) ratio of 13.34, reflecting its valuation relative to earnings. Over the past five years, it has achieved a steady revenue growth rate of 3.17%, supported by an average return on equity of 12.89%. In the latest fiscal year, the company reported a net income of Rs. 18.59 crore.

Notably, in Q3 FY 2024, Panasonic Carbon India Co Ltd saw a significant 35.04% year-on-year increase in net profit, driven by enhanced operational efficiencies and sustained market demand. Looking forward, the company is focused on broadening its product portfolio and optimizing manufacturing processes to further boost efficiency and cater to expanding market needs. This strategic approach underscores Panasonic Carbon India’s commitment to growth and innovation within the competitive battery components sector.

Exide Industries Ltd

Exide Industries Limited specializes in manufacturing and distributing lead-acid storage batteries, catering to a diverse range of sectors including automotive, power, telecom, infrastructure, computer industries, railways, mining, and defence. As of June 10th, 2024, the company holds a substantial market capitalization of Rs 40,353 crore.

Over the past five years, Exide Industries has maintained a commendably low debt-to-equity ratio of 4.32%, significantly below the industry average of 8.56%. This indicates the company's prudent financial management and conservative approach to leveraging its operations. By managing its debt levels effectively, Exide Industries has positioned itself well to navigate economic fluctuations and capitalize on growth opportunities in various sectors it serves.

Exide Industries continues to be a key player in the battery industry, emphasizing innovation and quality to meet the evolving needs of its diverse customer base. Its robust financial health and strategic management underscore its resilience and long-term sustainability in the competitive market landscape.

Indo National Ltd

Indo National Limited specializes in manufacturing dry batteries, flashlights, and a variety of other products, including CFL lamps, power stations, torches, and emergency power backup solutions. As of June 10th, 2024, the company's market capitalization stands at Rs 447.86 crore.

Over the past five years, Indo National Limited has demonstrated robust growth with a yearly revenue increase of 7.12%, surpassing the industry average of 4.51%. This growth underscores the company's effective strategy and market positioning in meeting consumer demand across its product range.

Additionally, Indo National Limited has successfully expanded its market share from 1.74% to 1.97% during the same period, reflecting its strengthened competitive presence. This achievement highlights the company's ability to effectively capitalize on market opportunities and enhance its footprint in the industry.

Moving forward, Indo National Limited remains committed to innovation and quality, aiming to sustain its growth trajectory and further consolidate its position in the market. With a focus on expanding its product offerings and improving operational efficiencies, the company is poised to continue its upward trajectory in the competitive landscape of battery and lighting solutions.

Amara Raja Energy & Mobility

Amara Raja Energy & Mobility, previously called Amara Raja Batteries Limited, is a company in India that produces lead-acid batteries. It manufactures batteries for the automotive and industrial sectors. Additionally, the company offers batteries for various sectors such as railways, telecommunications, defense, solar, UPS, and global operations.

It produces machinery for Hyundai Motors India Limited, Maruti Suzuki India Limited, Ford India Limited, Bajaj Auto Limited, Mahindra and Mahindra Limited, Tata Motors Limited, Royal Enfield, Renault Nissan, and other companies. Amara Raja Energy & Mobility has a presence in more than 50 countries around the world.

Starlit Power Systems Ltd

Starlit Power Systems Limited specializes in manufacturing and supplying secondary power storage batteries for a wide range of applications such as automotive, e-mobility, solar energy, inverters, and UPS systems. The company operates an integrated facility that includes metal refining, alloy production, and oxide manufacturing, ensuring stringent quality control over its raw materials and final products.

As of June 10th, 2024, Starlit Power Systems Limited holds a market capitalization of Rs 4 crore. Despite its smaller size in terms of market value, the company's focus on quality assurance through vertical integration highlights its commitment to delivering reliable and high-performance battery solutions across diverse sectors.

Looking ahead, Starlit Power Systems Limited aims to leverage its integrated manufacturing capabilities to innovate and expand its product offerings. By maintaining a strong emphasis on quality and efficiency in production processes, the company is poised to capitalize on growing demand for advanced battery technologies in both traditional and emerging markets. This strategic approach underscores Starlit's potential to carve out a niche and achieve sustainable growth in the competitive power storage sector.

Goldstar Power Ltd

Goldstar Power Limited specializes in manufacturing batteries and components, catering to a diverse array of industries including inverter/UPS manufacturing, automotive, general industrial applications, and solar energy storage. As of June 10th, 2024, the company commands a market capitalization of Rs 383.92 crore.

Over the past five years, Goldstar Power Limited has achieved impressive growth in its net income, expanding at an annual rate of 68.98%. This growth significantly outpaces the industry average of 4.78%, highlighting the company's effective strategy and market responsiveness.

This strong financial performance underscores Goldstar Power Limited's robust position in the competitive battery manufacturing sector. By focusing on innovation, quality, and meeting evolving industry demands, the company is poised to sustain its growth trajectory. Moving forward, Goldstar Power Limited remains committed to enhancing its product offerings and operational efficiencies to capitalize on emerging opportunities in both domestic and international markets.

Factors to Consider Before Investing in Battery Stocks

Before buying battery related stocks in India, you should consider several factors that can affect their performance:

Trend of Electric Vehicles

As the number of individuals using electric vehicles (EVs) increases, the need for EV batteries is also growing. Watch for government incentives, the development of EV charging infrastructure, and consumer preference for EVs, as they can boost battery stock growth.

Expansion of Renewable Energy

The growth of sustainable energy depends on battery-powered energy storage systems. Monitor developments in renewables policies, advancements in grid-scale energy storage, and the integration of batteries in the power sector, as they may impact the demand for lithium battery stocks.

Impact of regulations

Government regulations are crucial in the battery industry. Keep yourself updated on emissions standards, environmental regulations, and incentives for clean energy solutions, as alterations in regulations can impact the profitability and market demand for lithium battery stocks.

Logistics and distribution network

Battery company performance is impacted by the accessibility and price of raw materials. Keep an eye on things such as mining laws, political happenings, and advancements in sourcing materials and recycling. These factors impact the price and availability of battery ingredients.

Most recent advancements in battery technology

Keep yourself informed about the latest battery innovations that provide advantages such as extended durability and quicker recharge times. These new ideas provide a competitive advantage for businesses and have the potential to enhance the performance of their stocks.

Government's involvement in promoting the transition to electric vehicles

The government acknowledges the potential of electric vehicles (EVs) and the wide market opportunities for EVs, solar-distributed renewable energy, energy telecommunications towers, and data centers in India.

As a reaction, the government has set aside a fund of 18,000 crores for the manufacturing of Advanced Chemistry Cell (ACC) batteries. The government is also giving serious thought to battery swapping and has recently published a highly anticipated draft policy on the topic by the NITI Aayog. This strategy speeds up the adoption of EVs across the country by promoting tax exemptions for electric vehicles.

Bottom line

Investing in India's battery sector stocks offers a promising opportunity amidst the industry's rapid growth in energy storage. To capitalize wisely, it's crucial for investors to conduct comprehensive research, diversify their portfolio, and meticulously assess the risks associated with each company before making investment decisions. By understanding market dynamics and company-specific factors, investors can navigate potential rewards and challenges effectively in this burgeoning sector.

FAQs

Q. Which battery is no 1?

A. As a customer-centric brand, Exide has been the brand of choice for the quality of support and services it provides with each of its products. No wonder, millions of Indians have preferred Exide as the best power-backup solution for their homes and offices.

Q. Is it good to invest in battery?

A. Investors with a long-term investment view and a risk appetite should consider the best battery sector stocks to buy in India in 2024. These stocks are important for those who believe in the growing importance of green energy and the electrification of transportation.

Q. Who supplies the battery to Tata Motors?

A. Agratas designs and makes batteries for the automobile and energy sectors, with factories in India and the UK, according to its website. Tata Motors Ltd. and its unit Jaguar Land Rover Automotive Plc are its anchor customers.