Best Battery Stocks in India 2024

As the world is evolving rapidly towards sustainable energy resources, Battery production, manufacturing, sales, and maintenance-related firms are set to have a good impact because of the demand for batteries in the market. Hence, it is necessary to know the top battery stocks available in the stock market to capitalize on this growth.

In this article, you will learn about the best battery stocks in India, their company profiles, and an industry overview to help you make your investment decision with confidence.

List of the Best Battery Stocks in India

Source: Screener

Note: The ranking of these stocks is based on market capitalization. Please conduct a detailed analysis before investing. Metrics are recorded as of August 19th, 2024, and may vary daily.

Best Battery Stocks in India - Company Overview

Exide Industries

Exide Industries was established in the year 1998 in Pune, India. They operate extensively both in the domestic as well as international markets. They mainly cater to the supply of lead-acid batteries to various industries like automotive, telecommunications, and power.

Exide is expanding its facilities to meet the increasing demand for batteries in the EV and renewable energy segments. The company also has a strong market share in the Indian market, which is why this company is shortlisted as one of the best battery stocks in India.

Key Metrics:

• Sales Growth in 5 years: 2.64%

• Stock P/E: 48.3

• ROE (Return on Equity): 7.05%

• ROCE (Return on Capital Employed): 10.2%

• Dividend Yield: 0.40%

Amara Raja Energy and Mobility Limited

Incorporated in the year 1985. Amara Raja Ltd has become a major player in the Indian Battery sector. The company has operations mainly in India and also has a significant presence in the International markets as well. They export their products to more than 50 countries which includes the regions like Middle East and Africa.

The company is focusing on developing advanced cell and lithium batteries for the improvisation of electric vehicles and other energy storage systems. They are aggressively investing in lithium-ion manufacturing facilities to capitalize on the growing demand for energy storage solutions on a global scale.

By prioritizing lithium innovation, they are securing their place among the best lithium battery stocks

Key Metrics:

• Sales Growth in 5 years: 10.6%

• Stock P/E: 30.3

• ROE (Return on Equity): 14.0%

• ROCE (Return on Capital Employed): 18.7%

• Dividend Yield: 0.64%

HBL Power Systems Limited

HBL was incorporated in the year 1986 focusing on the manufacturing of specialized battery technologies for the defence and other industries. HBL Power operates through 5 major manufacturing facilities in India and exports their products to over 50 countries globally in the international markets notably in the Middle Eastern and Southeast Asian countries. 

The company is focusing on increasing its presence in the lithium-ion battery market particularly in the telecom and defence sectors. They also provide energy storage solutions to the transportation, railways, and oil & gas sectors as well. The company is expanding its capabilities in advanced battery technologies, including lithium-ion and Pure Lead Thin Plate (PLT) batteries.

Because of their increased focus on lithium-ion and Pure Lead Thin Plate (PLT) batteries, HBL secures a place on the list of top lithium battery stocks.

Key Metrics

• Sales Growth in 5 years: 12.0%

• Stock P/E: 55.6

• ROE (Return on Equity): 27.7%

• ROCE (Return on Capital Employed): 34.4%

• Dividend Yield: 0.08%

Eveready Industries India Ltd

The Eveready company was established in the year 1905 in the portable energy and lighting solutions sector. Over the years it has become a notable company in the households of India for their batteries and portable lights. 

The company operates significantly in the dry cell battery market, with its products sold in more than 4 million outlets worldwide. The company is investing highly in modern manufacturing facilities and R&D to increase energy efficiency and durable battery solutions for its customers. They are also committed to expanding its product portfolio in the rechargeable and alkaline battery segments to meet the growing demand in the market.

Key Metrics

• Sales Growth in 5 years: -2.69%

• Stock P/E: 47.7

• ROE (Return on Equity): 19.1%

• ROCE (Return on Capital Employed): 16.2%

• Dividend Yield: 0.21%

Panasonic Energy India Ltd

The company was incorporated in the year 1972 and has been one of the major players in the Indian market for over 5 decades. The company operates in Gujarat and also has a manufacturing facility in Madhya Pradesh. 

Panasonic is particularly engaged in the Zinc Carbon dry battery segment which is highly used in consumer electronics and home appliances. Although this company primarily serves the Indian market, they are benefitted from being the part of global Panasonic Corporation, allowing the company to leverage global expertise and innovations in battery technology. They are also expanding their product line in the alkaline battery market in the future.

Given their extensive experience and innovation, Panasonic Energy India Ltd is considered among the best battery stocks in India.

Key Metrics

• Sales Growth in 5 years: 7.11%

• Stock P/E: 30.4

• ROE (Return on Equity): 12.0%

• ROCE (Return on Capital Employed): 16.0%

• Dividend Yield: 1.67%

What are battery stocks?

Battery stocks refer to the companies that are actively involved in the production, development and sales of battery or its related technologies. These companies may produce various types of batteries which include lead acid, lithium ion, nickel, and more. The demand for this industry is increasing because of the rising number of electric vehicles, consumer electronics, and other applications.

Battery Industry in India

The rapid growth path for India's battery industry is driven by decarbonization requirements in the electricity and transport sectors, which account for nearly half of the nation’s greenhouse gas emissions. It has been projected that lithium-ion batteries (LIB) will dominate with a growth rate from 2.9 GWh in 2018 to 132 GWh by the year 2030 at a CAGR of 35.5%.

Various government initiatives are promoting the home production of advanced chemistry cell (ACC) batteries that are vital to ensure low-carbon technologies. Significant deposits of lithium have been discovered in Jammu & Kashmir and Rajasthan state that can satisfy 80% of Indian demand thus minimizing import dependence.

By 2030, India’s lithium-ion battery market is anticipated to grow at an annualized rate of 50% from 20 GWh in 2022 to 220 GWh making it one of the leading players globally as far as energy storage solutions are concerned.

Factors to Consider Before Investing in Battery Stocks in India

Now that we have discussed the industry overview, let’s dive into the factors that affect your investment in battery stocks:

Market Demand and Growth Potential

The rapid growth of the EV market is a major driver for battery demand in particular, how far they have progressed in EV Supply Chain and relationships with major automakers.

Supply Chain and Raw Materials

The batteries, particularly lithium-ion types, rely on materials like lithium cobalt, nickel, and graphite. Companies that have stable and low-cost access to them are better positioned.

Global Economic Conditions

Global economic conditions such as growth rates, inflation rates or even trade policies can affect the demand for batteries.

Company Fundamentals

Evaluate and check the company’s earnings, debt, and revenue growth before investing in the Battery stocks.

Government Policy and Budget

The Annual budget and government policies can have a significant impact on the industry. Changes in the policies can affect government contracts and spending.

How to Invest in Battery Stocks in India

Now that we’ve understood the factors to consider before investing in battery stocks in India, let’s look at the steps to invest in them:

• Research and find out the top-performing Battery stocks in the market

• Evaluate and assess your risk appetite and fix your financial goals

• Shortlist the stocks based on your fundamental and technical analysis

• Open Demat account and trading account through a trusted stockbroker

• Invest in the shortlisted stocks and monitor them regularly

Conclusion

The battery stocks in India are set for significant growth, driven by the rising demand for sustainable energy solutions, especially in the EV and renewable energy sectors. Investing in the best battery stocks can be a strategic move to capitalize on this trend. By conducting thorough research and following a disciplined investment approach, you can position yourself to benefit from the opportunities in the battery sector.