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Year Ender 2024: How Top Battery Stocks Performed 1 yr Return Basis – Amara Raja Energy & Mobility, Eveready & More

Updated on: Dec 11, 2024, 5:01 PM IST
India's battery market is driven by EVs and electronics. Explore the performance of top battery stocks in 2024, including Amara Raja Energy & Mobility and Eveready Industries India Ltd, based on 1yr return.
Year Ender 2024: How Top Battery Stocks Performed 1 yr Return Basis – Amara Raja Energy & Mobility, Eveready & More
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The battery industry in India is experiencing significant growth. In 2022, India’s battery market was valued at ~$1 billion, and it is projected to reach $6 billion by 2030. The growth is driven by increasing demand for electric vehicles (EVs), renewable energy storage, and consumer electronics. With a focus on innovation and sustainability, India is emerging as a key player in the global battery market.

In this article, check the performance of a few battery stocks in India in 2024, based on their 1-year returns.

Best Battery Stocks in India in 2024 – Based on 1yr Returns

Name Market Cap (₹ in crore) PE Ratio 5Y CAGR (%) 1Y Return (%)
Amara Raja Energy & Mobility Ltd 24,175.82 25.87 12.56 74.16
HBL Engineering Ltd 17,795.92 63.36 111.92 64.61
Exide Industries Ltd 38,649.5 44.09 20.79 59.22
Panasonic Energy India Co Ltd 352.39 30.25 27.84 15.58
Eveready Industries India Ltd 2,904.22 43.50 47.89 9.87
Goldstar Power Ltd 270.79 67.03 61.15 -24.33
Indo National Ltd 397.61 41.33 16.43 -25.05

Note: The best battery stocks list provided here is as of December 10, 2024. The stocks are sorted based on the 1-year returns and the market cap of the stocks is above ₹200 crore. The returns are from December 10, 2023, to December 10, 2024.

Overview of the Battery Stocks in India in 2024

Amara Raja Energy & Mobility Ltd

Amara Raja Energy & Mobility, formerly known as Amara Raja Batteries Limited (ARBL) is the flagship company of the Amara Raja Group. It is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in India’s storage battery industry. For the quarter ended September 30, 2024, the company reported a revenue from operations of ₹3,135.83 crore, an increase from ₹2,811.14 crore in the same quarter last year. Profit before tax stood at ₹323.97 crore, compared to ₹308.73 crore in the corresponding period of the previous year.

The company’s board declared an interim dividend of ₹5.30 per equity share for FY 2024-25. In November 2024, the company announced further investment in its subsidiary, Amara Raja Advanced Cell Technologies Private Limited (ARACT), from ₹1,000 crore to ₹2,000 crore to establish gigafactories/plants.

Key metrics:

  • Return on Capital Employed (ROCE): 17.72%
  • Return on Equity (ROE): 14.59%

2. HBL Engineering Ltd

HBL Power System Ltd (HBL Engineering Ltd) is engaged in the manufacturing and services of different types of batteries, e-mobility, and other products. For the quarter-ended September 30, 2024, the company reported a total income of ₹53,275.43 lakh, an increase from ₹55,469.80 lakh in the same quarter last year. Net profit stood at ₹8,049.60 lakh, compared to ₹6,855.05 lakh in the corresponding period of the previous year.

Key metrics:

  • ROCE: 30.98%
  • ROE: 25.87%

3. Exide Industries Ltd

Exide Industries Ltd is mainly engaged in the manufacturing of storage batteries and related products in India. For the quarter ended September 30, 2024, the company reported a total income of ₹4,490.25 crore, an increase from ₹4,408.91 crore in the same quarter last year. Net profit stood at ₹233.40 crore, which dropped from ₹270.32 crore in the corresponding period of the previous year.

In November 2024, the company invested ₹99.99 crore in its wholly owned subsidiary, Exide Energy Solutions Limited (EESL), on a rights basis. The investment will fund EESL’s greenfield lithium-ion battery manufacturing plant in Bengaluru. The plant will focus on producing and selling battery cells, modules, and packs.

Key metrics:

  • ROCE: 9.86%
  • ROE: 7.29%

4. Panasonic Energy India Co Ltd

Panasonic Energy India Co is amongst the largest manufacturers and suppliers of dry cell batteries and lighting products in India. In Q2 FY25, the company reported revenue from operations of ₹686.4 million, a slight 0.42% increase from ₹683.5 million in Q2 FY24. However, profit after tax (PAT) grew significantly by 17.39%, reaching ₹38.81 million.

Key metrics:

  • ROCE: 14.65%
  • ROE: 11.98%

5. Eveready Industries India Ltd

Eveready Industries India is a well-known battery company in India. It is one of the manufacturers of dry-cell batteries in India. The company offers batteries, lighting solutions, flashlights, and home appliances. In Q2 FY25, the company reported total income from operations of ₹362.4 crore, a drop of 0.7% from ₹364.9 crore in Q2 FY24. However, PAT grew by 15.7%, reaching ₹29.5 crore.

Key metrics:

  • ROCE: 20.23%
  • ROE: 18.91%

Battery Sector in India – 2024 Recap and What to Look Forward in 2025?

India’s battery energy storage capacity increased more than fourfold to 219 MWh by March 2024, compared to 47.6 MWh in March 2023. The Viability Gap Funding (VGF) program, with a budget of US$ 450.5 million (₹37.6 billion), aims to install 4 GWh of battery energy storage systems (BESS).

Additionally, energy storage obligations (ESO) and bidding guidelines for standalone and renewable energy-coupled energy storage projects are creating a strong pipeline for future developments.

Batteries are crucial for electric vehicles, which are experiencing a significant rise in demand in India. EV sales in the country grew by 31% year-on-year to 1,91,554 units in November 2024, driven by strong growth from Tata Motors with a 9% increase and Revolt Motors with a 197% surge. This growing demand is expected to further propel the battery market.

In India, the majority of lithium-ion batteries (LIBs) are used in consumer devices such as smartphones, computers, tablets, and notebooks. This market is expected to expand further due to the increasing digitalisation of platforms and the growing integration of technology into daily life. The lithium-ion battery segment generated revenue of $5,116.4 million in 2023 and is expected to grow at a CAGR of 22.1%, reaching $30,860.6 million by 2032. Currently, Indian companies are focusing on battery cell manufacturing.

Conclusion

Apart from these battery sector stocks, there are several other companies as well contributing to the sector. It’s vital to thoroughly understand each company’s business model, financial performance, and future prospects before making any investment decisions.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 6, 2024, 4:25 PM IST

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