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Best Battery Stocks In India to Buy in 2024

Best Battery Stocks In India to Buy in 2024

Best Battery Stocks In India To Buy In 2024

The future is EV, and the steady rise of Tata in the Automotive Electric vehicle segment is a testament to it. The EV Industry is still at a nascent stage and petrol and diesel cars are still popular among people, but the rapid pace at which natural resources such as petroleum and gas are depleting, the switch to alternative sources of energy for transportation is inevitable and currently Electric Vehicles are leading the way as the substitute of petrol and diesel engines.

 

Moreover, recently India hit a jackpot after it discovered 60 lakh tonnes of lithium in Jammu which have bolstered India’s lithium requirement making it self-reliant for which till now India was dependent on its import from other countries. But the question of what lies here is that... Is India ready for electric vehicles? Let’s understand in detail.  

 


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How Batteries are transforming the Automobile Industry?

The main component of Electric Vehicles is its lithium ion battery as it is the driving force of an Electric Vehicle in the literal sense propelling it forward the life and durability of an EV largely depend on its battery which eventually decides the success of the vehicle along with the features of the electric vehicle.

 

As the world is shifting from fossil fuels to more environment-friendly and electricity-driven sources of energy, batteries play a vital role in this energy transformation process and are turning out to be vital storage tools. we can also say lithium ion battery manufacturers stocks in India are the best share market tips for the investor to invest in the share market.

 

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Future of Lithium Batteries in India

Lithium-ion batteries first came onto the scene commercially in the 1990s and are now becoming the prominent source of eco-friendly drive by becoming a power source for many new-age mobile phones, electric cars, inverter batteries, battery bikes for kids, lithium powered batteries, and drones. According to Bloomberg, the demand for lithium-ion batteries is expected to grow 17-fold by 2030 which will eventually result in the reduction of battery storage cost.

 

As the EV battery revolution is in its early stage, investing in these stocks for the long term can reap exponential returns, therefore you should invest early in the stock market to leverage the power of compounding.

 

There is a wide range of vehicles that come under the EV spectrum including two wheelers, three-wheelers, four-wheelers, and buses. Presently, India imports the majority of EV batteries, semiconductors, and Battery Management Systems (BMS) from China, Japan, and Korea but there is a significant push among Indian manufacturers to produce India-specific batteries.

 

Battery technology is in the midst of the eco-friendly revolution taking place across the world whether it is with respect to smartphones, battery operated cars or medical equipment therefore, lithium-ion batteries that is the most important component of this revolution and the intricacies surrounding its manufacturing is something that everybody wants to resolve at the earliest.


You also need to know the best Ev stocks in India to buy in 2024.

 

                                 

Role of Government in the EV transformation drive 

The government is aware of the capabilities of the EV and realizes the vast potential market for EVs, solar distributed renewal energy, energy telecommunications towers, and data centers in India.  

 

Therefore, they have passed a budget of 18,000 crores for manufacturing Advanced Chemistry Cell (ACC) batteries. Battery Swapping is also being taken seriously by the government and recently a much-awaited draft policy on it was released by the Niti Ayog that aims to promote EV adoption on a large scale by promoting electric vehicle tax exemptions.

 

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Best Battery Stocks in India in 2024 for the future.

 

Let’s find out some of the leading Electric Vehicle Battery Stocks in India that could benefit from the Electronic Vehicle shift. These battery stocks are good stocks for long term investment.

 

Company Name Latest Price (Rs) 52 Week High (Rs) 52 Week Low
(Rs)
Market Cap
(Rs. Cr)
Exide Industries 329 354 170 28020
Amara Raja Batteries Ltd. 855 915 546 15659
UNO Minda Ltd. 640 726 435 36735
Tata Power 381 412 182 121630
Kabra Extrusion Technik Ltd. 382 602 355 1336

 

 

1). Exide Industries

It is one of the biggest players in all types of storage batteries, especially in the automotive industry and the majority of its revenue is generated from the automotive batteries business. Exide battery is the flagship product of the company. Exide is one of the best electric vehicle battery stocks india.

 

They have also made significant progress in the Lithium-ion batteries business and have started the manufacturing of lithium-ion batteries in India. To bolster its lithium-ion business, it has entered into a joint venture with Leclanché SA in the ratio of 75:25.

 

The company has acquired a stake of 7.7% in Leclanche for 107 crores between 2020-2021 and it presently has a capacity of 1.5 GWh.

Company Market Cap CMP Debt to Equity ROE CAGR (3year)
Exide Industries Limited 28020 329 0.03 7.39% 17%

 

 

2). Amara Raja Batteries Limited

In the Indian storage battery market, it is the biggest producer of lead-acid batteries for usage in vehicles and industrial applications. The company is popularly known for Amaron batteries, and it is also the preferred choice for big OEM companies.

 

It also provides services to many telecommunications companies such as Jio in industrial battery solutions. It is also on the lookout for technology for manufacturing Lithium-ion batteries.  

Company Market Cap CMP Debt to Equity ROE CAGR (3year)
Amara Raja Batteries Limited 15659 855 0 13.10% -1.1%

 

3). Uno Minda Limited

Uno Minda is the premium company of the Minda Group and a technology leader in the automotive components sector. It is also one of the leading suppliers of proprietary automotive solutions to OEMs.

 

The company has two divisions dedicated to cementing their presence in the EV Industry: Electronic Manufacturing Excellence (EME) and Spark Minda Green Mobility Company. It has acquired 26% in the charging solutions start-up namely EVQPOINT Solutions and with this partnership, the company aims to carve a niche for themselves in the EV charging solutions space.

Company Market Cap CMP Debt to Equity ROE CAGR (3year)
Uno Minda Limited 36,735 640 0.34 15.72% 31%

 

 

4). Tata Power

Tata Power deals in the generation, transmission and distribution of electricity. The company is dedicated towards producing electricity through renewable means and aims to build 1 lakh EV charging stations across India by 2025.

 

Being a Tata company gives it the advantage of value chain presence where it can grow its one business with the help of other Tata Group companies such as Tata Chemicals. It has also strategically partnered with Marco Tech Developers to provide end-to-end EV charging stations across Mumbai and Pune. With the increase in the use of lithium batteries, it will also positively affect the chemical industry, therefore it also becomes important to know the best chemical stocks in India  

Company Market Cap CMP Debt to Equity ROE CAGR (3year)
Tata Power 121630 381 1.70 13.58% 81.10%

   

 

5). Kabra Extrusion Technic Limited

It initially started as a plastic extrusion company but now it has also expanded into Lithium-ion batteries. The company started its new business of commercial production of Lithium-ion batteries in 2020 under the brand name Battrixx.

 

The company has strategically partnered with a leading European player and has benefitted from their patented design and manufacturing expertise. As it is a small-cap company, it can give exponential returns in the future if the company grows.

Company Market Cap CMP Debt to Equity ROE CAGR (3year)
Kabra Extrusion Technik Limited 1336 382 0.19 9.7% 45%



Conclusion

With fossil fuel and other natural resources depleting, new sources of energy are surfacing, and EV is one of the front-runners to replace the traditional petrol and diesel cars in the future. Lithium-ion batteries are the driving force of this technological shift with multiple uses of these batteries. Hence, the companies that deal in the manufacturing and development of these batteries are in for a good time and we as prudent investors look for such companies that could give good returns in the future and thus contribute out bit to this technological change.

 



FAQ

Ques 1. Who is the largest producer of EV batteries in India?

Ans- The Amara Raja Batteries Company is the largest manufacturer and supplier of EV batteries stocks in India. Similarly to Tata Group, Amara Raja Batteries has ventured into several sectors apart from battery manufacturing and collaborates with ISRO to manufacture electric vehicle batteries.

 

Ques 2. What is the PLI scheme?

Ans- The Product-Linked Initiative, also known as PLI, is a government initiative that supports battery manufacturers in India. A financial incentive is provided to eligible firms based on incremental revenues or investments in manufacturing facilities. The scheme is designed to boost domestic production, attract investments, and create jobs.

 

Ques 3.  Battery penny stocks in India?

Ans-  Here is the list of battery manufacturing company penny stocks in India are:

  1. Starlit Power Systems Ltd
  2. Standard Batteries Ltd
  3. Indo National Ltd
  4. Pae Ltd
  5. Panasonic Energy India Co. ltd
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