Best Battery Stocks in India: September 2024 Picks Based on 5Y CAGR

In recent years, the demand for batteries has surged, driven by technological advancements and a growing emphasis on renewable energy. This has increased interest in battery companies, which play a crucial role in powering everything from electric vehicles to portable electronics.

India, with its expanding economy and focus on green energy, is home to several key players in the battery industry. These companies are involved in manufacturing various types of batteries, including those used in electric vehicles, energy storage systems, and consumer electronics. In 2022, the market size for batteries in India was around USD 1 billion. It was estimated that by 2030, the market will reach USD 6 billion.

In this article, check some of the best battery stocks in India in September 2024, picked based on their 5-year CAGR.

Best Battery Stocks in September 2024 – Based on 5-yr CAGR

Note: The best battery stocks list provided here is as of August 30, 2024. The stocks are sorted based on the 5-year CAGR.

Overview of the Best Battery Stocks in September 2024

1. HBL Power Systems Ltd

HBL Power System Ltd is involved in the manufacturing and services of different types of batteries, e-mobility, and other products. In FY 2024, the company’s total income reached ₹2,25,126.30 lakh, up from ₹1,38,636.22 lakh in FY 2023. The profit for FY 2024 was ₹26,265.62 lakh, an increase from ₹9,709.17 lakh in FY 2023.

Key metrics:

• Return on Capital Employed (ROCE): 36.89%
• Return on Equity (ROE): 10.86%

2. Goldstar Power Ltd

Goldstar Power Ltd is a battery manufacturer that manufactures and markets its products under its flagship brand, GOLDSTAR. In FY 2024, the company’s total income reached ₹5,232.02 lakh, up from ₹5,212.04 lakh in FY 2023. The profit for FY 2024 was ₹404.56 lakh, an increase from ₹372.72 lakh in FY 2023.

Key metrics:

• ROCE: 23.39%
• ROE: 16.69%

3. Eveready Industries India Ltd

Eveready Industries India Limited is one of the popular battery companies stock in India. It is amongst the leading manufacturers of dry cell batteries in India. The company provides batteries, lighting solutions, flashlights, and home appliances. In FY 2024, the company’s total income reached ₹1,314.2 crore, a slight drop from ₹1,327.7 crore in FY 2023. The profit for FY 2024 was ₹66.7 crore, an increase from ₹20.1 crore in FY 2023.

Key metrics:

• ROCE: 20.23%
• ROE: 18.91%

4. Panasonic Energy India Co Ltd

Panasonic Energy India Co Ltd is one of the largest manufacturers and suppliers of dry cell batteries and lighting products in India. In FY 2024, the company’s total income reached ₹29,548.26 lakh, an increase from ₹25,700.69 lakh in FY 2023. The profit for FY 2024 was ₹1,547.49 lakh, an increase from the loss of ₹617 lakh in FY 2023.

Key metrics:

• ROCE: 14.65%
• ROE: 11.98%

5. Exide Industries Ltd

Exide Industries Ltd is mainly involved in the manufacturing of storage batteries and related products in India. In FY 2024, the company’s total income reached ₹16,859.68 crore, an increase from ₹15,202.69 crore in FY 2023. The profit for FY 2024 was ₹882.82 crore, an increase from ₹822.77 crore in FY 2023.

Key metrics:

• ROCE: 9.86%
• ROE: 7.29%

Battery Industry in India 

Batteries, from TV remotes to electric vehicles, are integral to our daily lives, yet their significance often goes unnoticed. The lithium-ion battery sector, essential for powering devices ranging from smartphones to electric cars, is expected to experience substantial growth in India. The industry, which had a capacity of 2.9 gigawatt-hours (GWh) in 2018, is projected to expand to ~132 GWh by 2030, reflecting a CAGR of 35.5%.

Advanced Chemistry Cell (ACC) batteries represent a crucial component of future low-carbon transportation and energy systems. These batteries, which support innovations in electric vehicles and large-scale energy storage, are the focus of significant development efforts. In 2022, the Indian government launched the National Programme on Advanced Chemistry Cell (ACC) with an investment of ₹181 billion. This initiative aims to boost domestic manufacturing capabilities, targeting establishing facilities with a combined production capacity of 55 gigawatt-hours. This effort highlights India’s commitment to advancing battery technology and reducing reliance on imports while fostering growth in the energy storage sector.

Conclusion

In addition to these battery sector stocks, other companies also contribute to the battery manufacturing sector. It’s important to thoroughly understand each company’s business model, financial health, and future prospects before making any investment decisions. Consulting with a financial advisor can provide personalised guidance and help you make informed choices.

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.