5 Top-Performing Battery Stocks & Why You Must Know About Them
Created on 20 Jan 2024
Wraps up in 5 Min
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₹1,394.91 crore- the estimated value of India's battery market by 2023. Looking ahead, it's expected to jump to around ₹2,299.10 crore over the next five years, showing a solid growth rate of more than 10.56%.
Clearly, India's energy game is hot right now; it's practically sizzling! Our government has set some big dreams for a greener future by 2030.
Now, let's quickly check out the industry before we dive into the details of these 5 stocks.
India Batteries Industry Overview
The Indian Battery market is categorised based on Technology and Application. For a clearer breakdown, refer to the infographic below 👇
In the coming years, the Indian battery market is expected to grow because of new markets like electric vehicles and battery energy storage systems. More people using car batteries in electric vehicles will also contribute to this growth.
However, there might be a slowdown because no local facilities are making lithium-ion batteries in India right now. But, there are plans to start making them here, which could create good opportunities for the market.
India's battery market is quite a mix, with various companies playing their part. Now, let's explore the top 5 battery stocks, performance-wise. Big shoutout to Ticker by Finology for the inside scoop!
1. Exide Industries Ltd.
Valued at ₹27,127 crore, Exide Industries Ltd. is a prominent player in India's automotive battery sector.
Established under the Companies Act 2013, the company has secured a strong presence on three key stock exchanges in India.
Specialising in the production of storage batteries and associated products, Exide Industries has emerged as a top choice for long-term investors, recognised for its commitment to reliability and innovation.
The company achieved revenue of ₹14,592 crore, along with an EBITDA of ₹1,568 crore for the year under review.
The Profit After Tax stood at ₹904 crore, growing by nearly 18% year-over-year.
2. Amara Raja Energy & Mobility Ltd.
Amara Raja Batteries (ARBL), the flagship of the Amara Raja Group, is a leading automotive battery manufacturer with acclaimed brands like Amaron and PowerZone.
ARBL, an industry pioneer, introduced Valve Regulated Lead-Acid (VRLA) batteries in India, emphasising performance, reliability, and longevity with minimal maintenance.
ARBL's global presence includes exporting Industrial and Automotive batteries to various countries. In India, it's the preferred supplier for major sectors like:
- Power & Gas Industries.
Recognised by the Government of India, ARBL's in-house R&D centre ensures constant innovation. As a technology leader, it's one of India's largest manufacturers of lead-acid batteries, serving diverse applications in both industrial and automotive sectors.
The company's revenue has soared by an impressive 19% year-on-year, and its pre-tax profit has surged by 35% compared to the previous year.
3. HBL Power Systems Ltd.
Boasting over 30 years of invaluable experience, HBL Power Systems was born from the merger of Hyderabad Batteries (1977) and SABNIFE Power Systems (1986).
The company has established its roots in Hyderabad, India, with a widespread presence through factories, sales offices, global offices, distributors, and agents.
Despite challenges like increased inflation and higher interest costs, the company saw an 11% growth in revenue, reaching ₹1,350 crore. In FY23, EBITDA improved to ₹167 crore, with a Net Profit of ₹95 crore.
4. Eveready Industries India Ltd.
Established in 1934, Eveready Industries India is a well-known name in dry cell batteries. Initially a subsidiary of the Union Carbide Corporation, it later came under the ownership of B M Khaitan and the Williamson Magor group.
Beyond batteries, Eveready manufactures flashlights, LED lights, mosquito repellent, packet tea, and home appliances.
In 1995, a joint venture with Ralston Purina Overseas Battery Company led to Energizer India. The company ventured into rechargeable batteries and expanded its capabilities from 1999 to 2000.
The year witnessed a 10% increase in revenue from operations compared to the previous financial year. Despite a marginal decrease in depreciation to ₹27.39 crore (from ₹27.47 crore) and an increase in interest/exchange fluctuation charges to ₹56.64 crore (from ₹48.03 crore), the profit after taxation stood at ₹20.13 crore.
This is a notable decline from the ₹47.48 crore profit recorded in the previous year. The net accumulated losses amounted to ₹10.51 crore.
5. High Energy Batteries (India) Ltd.
Founded in 1979, High Energy Batteries (India) has established itself as a leading manufacturer specialising in advanced batteries designed for military applications in the Army, Navy, Air Force, and Launch Vehicles.
This integral part of the organisation focuses on designing, developing, and implementing the production of batteries tailored for specific applications.
HEB's revenue witnessed strong growth, with a 15% Compound Annual Growth Rate (CAGR) from FY 2018 to 2023. In FY 2023, the company experienced a 16.70% year-on-year revenue increase, reaching ₹92.53 crore.
This uptick was mainly driven by increased Navy orders and a significant contract for developing high-power batteries for a futuristic torpedo program.
The Bottom Line
As we finish up talking about battery stocks, one thing's for sure: energy is super important now and will be in the future.
People are all about clean energy and new technologies, which is awesome news for investors.
Whether it's going green, new gadgets, or adapting to changes, batteries will always be a big part of the energy industry. It's an exciting time for this field, bursting with potential. If you're thinking about investing, the energy sector could be the way to go for a brighter tomorrow.
*Disclaimer: The stocks discussed above aren't recommendations from Finology, and shall not be construed as a replacement for professional advice. Consult a professional or conduct the necessary research before making an investment decision.
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