Best Battery Stocks in India

29 April 2024
7 min read
Best Battery Stocks in India
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(The stocks mentioned in the blog are as per Market Capitalization)

From powering TV remotes to driving electric vehicles, batteries are used in our daily lives. Yet, their significance often goes unnoticed. However, with India's growing focus on renewable energy production, the demand for batteries has soared to new heights.

As the nation strides towards a sustainable future, the role of batteries in powering both our energy infrastructure and transportation sector is becoming increasingly pivotal.

Battery Industry in India - A Brief Overview

The Indian battery market is thriving due to various factors, such as government initiatives promoting electric vehicle adoption, increasing demand for energy storage systems fueled by renewable energy deployment, and the growing usage of consumer electronics. Rising environmental awareness, urbanisation, and technological advancements are further propelling market growth.

However, challenges such as high battery costs, lack of standardisation and limited recycling infrastructure hinder the market's full potential. Despite this, India is committed to reducing carbon emissions, with a focus on renewable energy and electric vehicle adoption.

This commitment drives the need for battery storage, particularly in lithium-ion and advanced chemistry cells (ACCs), with the market expected to grow significantly.

Government initiatives like Make In India and the National Program on ACC Battery Storage support the development of a domestic battery production ecosystem. The recently introduced Production-Linked Incentive (PLI) program further boosts battery manufacturing capacity. With a projected CAGR of 16.80%, the Indian battery market is estimated to reach USD 15.65 billion by 2029 from USD 7.20 billion in 2024.

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Top Battery Stocks in India in 2024 as per Market Capitalisation

Here is a table highlighting the best battery stocks in India as per market capitalisation:

S.No.

Battery Stocks in India (as per market capitalisation)

1.

Exide Industries

2.

Amara Raja Energy & Mobility

3.

HBL Power Systems

4.

Eveready Industries India

5.

Indo National

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Battery Stocks in India as per Market Capitalisation

Here is a comprehensive overview of the top battery Stocks in India as per market capitalisation:

1) Exide Industries

Headquartered in Kolkata, Exide manufactures, designs, markets and sells a wide range of lead acid storage batteries. The company’s products are divided into various segments, including automotive batteries, inverter batteries, industrial batteries, solar batteries, institutional batteries, genset batteries and submarine batteries.

In addition, it also provides home UPS systems, integrated power backup systems, solar solutions, e-rickshaw vehicles and demineralised water. 

Exide manufactures batteries with a capacity ranging from 2.5Ah to 20,600Ah. It has around 9 factories spread across India, including 7 factories for manufacturing batteries and 2 factories for manufacturing Home UPS systems. The company caters to brands including Dynex and SF Batteries. Exide is present globally in the Middle East,  Asia, Africa, Europe and North America.

2) Amara Raja Energy & Mobility

Formerly known as Amara Raja Batteries Limited, Amara Raja Energy & Mobility is a lead-acid battery manufacturer based in India. It makes batteries for automotive and industrial purposes. Furthermore, the company provides batteries for different segments like railways, telecom, defence, solar, UPS and international operations. 

It manufactures equipment for companies like 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 more. Amara Raja Energy & Mobility are globally present in over 50 countries. 

3) HBL Power Systems

HBL Power Systems manufactures, develops and designs specialised batteries and provides electronic solutions. It serves various industries such as defence, railways, aviation, power, telecom and data centres and oil and gas. The company's electronics division is divided into railway electronics and electric mobility. 

Its main products in this sector include the train collision avoidance system (TCAS), which enhances safety and the train management system (TMS), designed to optimise track usage. Additionally, it has created electric drivetrain kits to upgrade light commercial vehicles and passenger buses. The company also produces customised batteries for different uses, including fighter aircraft, unmanned aerial vehicles and torpedoes.

4) Eveready Industries India

Incorporated in 1934, Eveready Industries India Limited dominates India's organised flashlight market with a share of over 65%, selling more than 20 million flashlights annually. The company is involved in marketing dry cell batteries, rechargeable batteries, general lighting products and small home appliances. It also distributes various electrical products, small home appliances and confectioneries.

Its products encompass zinc-carbon and alkaline batteries, rechargeable torches, plastic and metal torches, various types of LED lights, portable lanterns and outdoor lighting. The company provides its products under brands like Eveready, Uniross and PowerCell.

It has around more than 1,000 distribution points and over 4 million outlets that sell Eveready’s products. Eveready Industries’ manufacturing facilities are located in Goalpara (Assam), Haridwar, Maddur, Noida, Lucknow, and Kolkata.

5) Indo National

Indo National Limited, also known as Nippo, has been manufacturing and marketing batteries, LED products, torches, electrical accessories, mosquito bats, razors and blades since its establishment in 1972.

It offers a range of portable lighting solutions, including both battery-operated and rechargeable options. The company’s flashlights come in various colours, wattages, sizes and price ranges.

Its LED lighting products consist of downlights, panel lights, rechargeable bulbs and spotlights. The electrical accessories include flex boxes and spike guards. Its wide range of mosquito swatters feature terminator mini, terminator II and guard models.

Its battery offerings include alkaline and zinc carbon types. In addition, Indo National has around 3,200+ distributors spread across India and has subsidiaries including Kineco Limited, Kineco Kaman Composites India Private Limited, Kineco Alte Train Technologies PrivateLimited and Helios Strategic Systems Limited.

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:

  • Electric Vehicle Trend

With more people adopting electric vehicles (EVs), the demand for EV batteries is rising. Look out for government incentives, EV charging infrastructure development and consumer preferences for EVs, as these factors can drive battery stock growth.

  • Renewable Energy Growth

The expansion of renewable energy relies on energy storage systems powered by batteries. Keep an eye on policies supporting renewables, advancements in grid-scale energy storage and battery integration into the power sector, as these can influence the demand for lithium battery stocks.

  • Regulatory Impact

Government regulations play a vital role in the battery industry. Stay informed about emissions standards, environmental regulations, and incentives for clean energy solutions, as changes in regulations can affect the profitability and market demand for lithium battery stocks.

  • Supply Chain¬†

The availability and cost of raw materials affect battery company performance. Monitor factors like mining regulations, geopolitical events and improvements in material sourcing and recycling. These dynamics influence the cost and supply of battery components.

  • Latest Battery Tech

Stay updated on new battery technologies that offer benefits like longer lifespan and faster charging. These innovations give companies an edge and can boost stock performance.

Should You Invest in Battery Stocks?

When considering investing in battery companies in India it is important to be mindful of the challenges that come with it.

One key risk is the intensifying competition in the market, driven by the increasing adoption of electric vehicles and renewable energy sources. This competition can impact the growth potential of individual battery stocks, making it essential for investors to seek out companies with a strong competitive edge.

Additionally, regulatory changes and evolving standards pose another risk, potentially increasing costs for battery manufacturers and affecting profitability. 

The rapid evolution of battery technology also introduces uncertainty, as newer advancements could potentially overshadow existing technologies.

Lastly, the success of battery products ultimately hinges on consumer acceptance and adoption, which may vary depending on factors like infrastructure development and affordability. While there is long-term potential in investing in battery stocks, it is important to proceed with caution and conduct thorough research before making investment decisions.

The Bottom Line 

With their versatility and reliability, batteries are not just essential components of our modern lives but also key enablers of India's journey towards a greener, more sustainable tomorrow.

Therefore, if you look forward to investing in battery stocks, ensure to consider your investment and risk appetite and consult a financial advisor if you require guidance.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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