The Indian battery market is growing rapidly and is expected to reach 20.24 billion by 2031. The sector is rapidly expanding, thanks to factors like the government’s push to boost renewable energy production. The increasing adoption of electric vehicles is also driving demand for batteries, not to mention environmental awareness, urbanization, and technological advancements. Viewed from this angle, battery stocks look attractive from an investor’s point of view.
Selecting the best battery stocks allows investors to exploit the growing sector. These stocks are a critical aspect of the future of energy. You can also include them to diversify your investment portfolio. Whether you are a novice investor or an expert one, battery stocks offer long-term opportunities.
Exploring top battery stocks in the Indian market based on market capitalization
India’s battery industry is poised for rapid expansion, thanks to the increased demand for EVs and renewable energy solutions. Like other government initiatives, the Production Linked Incentive (PLI) scheme drives domestic battery production and innovation. Here is a table that lists the best battery stocks in India based on market capitalization.
| Company | Market Cap | Stock P/E | ROE | Dividend Yield% |
| Exide Industries | ₹32,734 Cr. | 41.2 | 5.93% | 0.52% |
| Amara Raja Energy& Mobility Ltd | ₹18,723 Cr. | 19.8 | 14.0% | 0.97% |
| HBL Engineering Ltd | ₹15,806 Cr. | 48.0 | 27.7% | 0.09% |
| Eveready Industries India Ltd | ₹2,293 Cr. | 27.8 | 19.5% | 0.33% |
| Indo National | ₹392 Cr. | 3.16 | 4.11% | 0.95% |
1. Exide Industries
Exide, which is headquartered in Kolkata, manufactures, designs, markets, and sells a wide variety of lead-acid storage batteries. The company’s products are segmented into several categories: automotive batteries, inverter batteries, industrial batteries, solar batteries, institutional batteries, genset batteries, and submarine batteries. It also offers home UPS systems, integrated power backup systems, solar solutions, e-rickshaw vehicles, and demineralized water.
2. Amara Raja Energy & Mobility Ltd.
Established in 1985, Amara Raja Energy & Mobility Ltd is popular for automobile and industrial battery solutions. A key player in energy storage and mobility solutions both within India and outside, Amara Raja is a part of the larger Amara Raja Group. The firm offers batteries to various segments, including railways, telecom, defense, solar, UPS, and international operations. Amara Raja Energy & Mobility operates in more than 50 countries worldwide.
3. HBL Engineering Ltd
HBL was established in 1986. It focuses on manufacturing specialized battery technologies for defense and other industries. HBL operates its 5 major manufacturing plants in India and exports its products to more than 50 countries worldwide, particularly to Middle Eastern and Southeast Asian countries. The company is, however, concentrating on dominating the lithium-ion battery market, especially in the telecom and defense sectors.
4. Eveready Industries India Ltd
Eveready Company was started in 1905 as a portable energy and lighting solutions company. Through the years, it has emerged as a household brand known for its batteries and portable lights. The company has a major presence in the dry cell battery market, and its products are available through more than 4 million retail outlets.
5. Indo National
Indo National Limited, better known as Nippo, manufactures and sells batteries, LED products, torches, electrical accessories, mosquito bats, razors, and blades since 1972. It has a variety of portable lighting solutions, which are both battery-powered and rechargeable. The company’s flashlights are available in various colors, wattages, sizes, and price ranges. It has downlights, panel lights, rechargeable bulbs, and spotlights as LED lighting products. It has an alkaline and zinc carbon battery.
What defines a battery stock?
Battery stocks are securities of firms that produce, innovate, or sell batteries and energy storage. These firms manufacture batteries for electric vehicles, renewable energy storage, and consumer electronics. India is on its way to becoming a superpower in sustainable technology, so the best battery stocks are a unique investment opportunity for investors who wish to invest for the long term.
• Understanding the core business of battery companies
Innovation is at the heart of battery suppliers’ activities. They work with manufacturers and invest in research and development to develop suitable advanced battery technologies. They offer critical products and services that empower businesses and individuals to realize the maximum potential of battery technology. They manage inventories properly, ensuring that companies and consumers have access to batteries at the point of demand, thus reducing unavailability downtime and frustrations.
• Key products and technologies in the battery industry
Although lithium dominates lithium-ion batteries, it is also highly volatile, reactive, and expensive. Therefore, innovators are also finding ways to decrease the amount of Lithium that goes inside a battery with other, less reactive battery material while still retaining maximum functionality. Solid-state batteries are more efficient than lithium-ion batteries and can squeeze in more power using batteries of the same size as lithium-ion batteries. EV batteries may then be made smaller in size, faster in charging, and lighter, perhaps enabling the range.
Investment essentials for battery stocks
Investing in the best battery stocks offers great benefits, especially now that the economy is shifting its emphasis towards electric vehicles (EVs) and renewable energy. In 2022, the size of the market for batteries in India was approximately one billion U.S. dollars. By 2030, the market will be worth about 6 billion dollars. Below are some essentials that you should consider regarding the battery stocks in the Indian stock market.
• Analyzing Market Trends and Growth Potential
Indian battery industry, coupled with the best battery stocks in India, is also rising with the increase in demand for electric vehicles (EVs) and renewable energy storage. The potential of battery stocks and lithium batteries, in particular, is growing in significance with EVs. An awareness of the competitive space could give you an insight into identifying potential leaders in the space.
• Evaluating the Financial Health of Battery Companies
You may also examine the financial health of battery companies listed on the National Stock Exchange (NSE). Some factors that may help you understand the company’s potential growth include revenue, profit margins, and innovation capacity. Research on the battery company’s share price history would provide more insights into the market’s performance.
The role of electric vehicles (EVs) in boosting battery stocks
The best battery stocks are destined to grow exponentially due to the continued growth of markets for EVs and demand for renewable energy storage prospects. As India focuses on adopting sustainable energy sources, the demand for high-capacity, reliable batteries will rise, and battery manufacturing companies are vital for the transition process.
• Impact of EV Demand on Battery Manufacturers
Batteries are critical to the overall performance of EVs. When EV battery manufacturers in India make innovative and advanced battery technology, it leads to cheaper, better, and more efficient electric vehicles. What’s more, the development of electric transport is leading to the decline of India’s dependence on fossil energy, which is pivotal to addressing environmental concerns. As a result of the government’s measures, EV battery suppliers in India are currently well-placed to help the nation build a thriving electric vehicle industry.
• Government Policies Supporting EV Infrastructure
Union Budget 2023–24 doubled customs duty exemption on importing machinery and equipment to produce lithium-ion cells for electric cars. GST on electric vehicles has been brought down to 5% from 12%, and GST on EV charging stations has been brought down to 5% from 18%.
Risks involved in investing in battery stocks
If you plan to invest in India’s best battery stocks, consider the risks involved.
• Market Volatility and Competition
Even the best EV battery stocks in India cannot escape market fluctuations due to economic conditions or investor sentiment. The battery industry is competitive, with many players scrambling for market share. Competition may influence the growth and visibility of the lithium-ion battery stocks in India.
• Technological Changes and Their Impact
The rapid technological advancement of batteries also creates uncertainty because new technologies may overcome the old ones. As batteries undergo fast technological development, there is uncertainty in the battery industry because companies may get left behind with products that fail to compete with new trends.
Conclusion
Investing in the best battery stocks in India provides an excellent opportunity to build wealth while capitalizing on the increased demand for clean energy and sustainable technologies. With the improved battery technology and the expanding use of renewable energy sources, battery stocks are poised for rapid expansion.
However, it is important to understand the risks associated with this sector. It requires extensive research, diversifying your portfolio, and updating yourself with industry developments.
FAQs
Q. How do I start investing in battery stocks in India?
To invest in battery stocks in India, you need to open a user account with a registered stockbroker like Lemonn. Research companies of interest and place buy orders for the chosen stocks. Portfolio diversification and keeping yourself updated with sector news and trends are also crucial for making informed decisions.
Q. What are the signs of a promising battery stock investment?
Battery stocks are on the ascent as India prepares for an electric and renewable energy future. The demand for sustainable energy solutions is high, making these stocks a good investment opportunity. This emerging sector is set to experience tremendous growth with modernization and government support.
