Top Battery Stocks in India for 2024: Meaning,  Benefits & Risks

The energy storage industry is booming due to the global shift towards green energy and the increasing demand for electric cars. India’s ambitious goal to achieve net-zero pollution by 2070 highlights the battery sector’s crucial role in this transition. This trend offers investors a significant opportunity to diversify their portfolios with top battery stocks in India.

Batteries are essential in everyday items like TV remotes, toys and electric vehicles but often go unnoticed despite their importance. However, battery demand has surged with India’s focus on renewable energy. As the country moves towards a sustainable future, batteries are vital for energy infrastructure and transportation. This article will focus on a list of top battery stocks in India based on their return on investments and explore the battery sector in India in more detail.

Top Battery Stocks in India for 2024

Here’s the list of top battery companies in India based on their 5-year average return on investment (ROI) for you to invest in 2024:

Battery Companies Stock	Market Cap (in Cr)	Share Price	5Y Avg Return on Investment
Exide Industries Ltd	₹40,353.75	₹540.70	17.38
Amara Raja Energy & Mobility Ltd	₹22,148.81	₹1,342.45	14.45
Panasonic Carbon India Co Ltd	₹247.92	₹ 531.50	12.34
HBL Power Systems Ltd	₹14,256.14	₹479.10	7.09
Goldstar Power Ltd	₹383.92	₹14.40	6.73
Indo National Ltd	₹447.86	₹574.25	6.08
Eveready Industries India Ltd	₹2,435.02	₹335.55	5.47
Panasonic Energy India Co Ltd	₹383.81	₹507.00	3.13
Starlit Power Systems Ltd	₹4.75	₹4.72	-

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in the list is from 10th June, 2024. This data is derived from Tickertape Stock Screener.

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

Best Battery Companies in India: An Overview

Let’s take a look at some of the top battery companies in India:

Exide Industries Ltd

Exide Industries Limited manufactures, markets, and sells a range of lead-acid storage batteries. The company makes batteries for the automotive, power, telecom, infrastructure projects, computer industries, railways, mining, and defence sectors. As of 10th June 2024, the company’s market capitalisation is ₹40,353 cr. Over the past five years, the company’s debt-to-equity ratio has been 4.32%, lower than the industry average of 8.56%.

Amara Raja Energy & Mobility Ltd

Amara Raja Batteries Limited manufactures lead-acid storage batteries for industrial and automotive applications in India. As of 10th June 2024, this stock’s market capitalisation is ₹22,148 cr. The company’s revenue has grown yearly at 8.91%, higher than the industry average of 4.51%, over the past five years. The company’s market share increased from 29.05% to 35.69% in the same period.

Panasonic Carbon India Co Ltd

Panasonic Carbon India Co. Ltd is a subsidiary of Panasonic Corporation. The company manufactures carbon rods in over 40 sizes and approximately six grades. As of 10th June 2024, the stock’s market capitalisation is ₹247.92 cr. Over the past five years, the company’s current ratio has been 2138.25, higher than the industry average of 177.76.

HBL Power Systems Ltd

HBL Power Systems Limited is focused on engineered products and services. The company designs, develops, and manufactures specialised batteries and direct current systems in India and other engineering products. As of 10 June 2024, the company’s market capitalisation is ₹14,256.14 cr. Over the past five years, the company’s net income has grown at a yearly rate of 25.55%, higher than the industry average of 4.78%.

Goldstar Power Ltd

Goldstar Power Limited manufactures batteries and their components. The company sells its products to various industries, such as inverter/UPS manufacturers, automobiles, general industrial applications, and solar energy storage. As of 10th June 2024, the company’s market capitalisation is ₹383.92 cr. Over the past 5 years, the company’s net income has grown at a yearly rate of 68.98%, higher than the industry average of 4.78%. 

Indo National Ltd

Indo National Limited manufactures dry batteries, flashlights, and other products. It offers various products, including batteries, CFL lamps, power stations, torches, and emergency power backup ranges. As of 10 June 2024, the company’s market capitalisation is ₹447.86 cr. Over the past five years, the company’s revenue has grown yearly at 7.12%, higher than the industry average of 4.51%. The company’s market share increased from 1.74% to 1.97% in the same period. 

Eveready Industries India Ltd

Eveready Industries India Limited is engaged in the business of marketing of fast-moving consumer goods (FMCG), such as dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products. As of 10th June 2024, the company’s market capitalisation is ₹2,435.02 cr. The company’s return on investment (ROI) is 9.06%, and its net profit margin stands at 5.07%. 

Panasonic Energy India Co Ltd

The company is engaged in the making of dry-cell batteries and lighting products. The company’s products include zinc carbon batteries, alkaline batteries, torches and rechargeable batteries. The company is a part of Panasonic Corporation. The company’s debt-to-equity ratio has been 1.56%, lower than the industry average of 8.56%, over the past 5 years. In the same period, the company’s current ratio has been 336.02, higher than the industry average of 177.76.

Starlit Power Systems Ltd

Starlit Power Systems Limited specialises in manufacturing and distributing secondary power storage batteries. The company produces batteries for various applications, including automotive, e-mobility, solar, inverters, and UPS. Starlit’s facility integrates metal refining, alloy production, and oxide manufacturing, ensuring control over the quality of its raw materials and final products. As of 10th June 2024, the company’s market capitalisation is ₹4 cr.

Confused About Which Battery Stock to Pick? Consider Exploring smallcase as an alternative

Electric Mobility smallcase: This smallcase managed by Windmill Capital consists of companies that are driving India to its transition to electric vehicles.

Electric Mobility smallcase by Windmill Capital

What are Battery Stocks?

Battery shares are stocks of companies that produce, develop, or distribute batteries and energy storage solutions. These companies manufacture batteries for electric vehicles, renewable energy storage, consumer electronics, and more.

Features of Battery Sector Stocks

Let’s have a look at the key features of battery sector stocks.

• Market Demand: The demand for electric vehicle lithium battery stocks India extends beyond electric vehicles. Consideration of diverse applications, including renewable energy storage and portable devices, sheds light on the broader market dynamics influencing these best lithium stocks in India.
• Supply Chain Resilience: Battery production is contingent on a complex global supply chain. Factors such as access to raw materials, geopolitical stability, and manufacturing capabilities play crucial roles in stock performance.
• Regulatory Landscape: Government policies and environmental regulations significantly impact the battery sector. Investors should stay abreast of evolving regulations concerning emissions, recycling, and energy storage incentives.
• Competition and Partnerships:  The competitive landscape within the battery sector is dynamic. Lithium-ion battery stocks in India, with lithium manufacturers in India listed in the stock market, forming strategic partnerships or gaining a competitive edge in production efficiency may present compelling investment opportunities in Indian lithium stocks.

Factors Influencing Battery Sector Stocks

Battery stocks are influenced by several factors that can impact their performance in the market, including;

• Technological Advancements: Keep an eye on the latest battery technologies. Innovations like longer lifespan, faster charging, and improved energy density can give battery companies in India a competitive edge and boost their stock performance.
• Electric Vehicle Adoption:  As more people embrace electric vehicles, the demand for EV stocks increases. Pay attention to factors like government incentives, charging infrastructure development, and consumer preferences for EVs. These trends can drive the growth of battery stocks. 
• Renewable Energy Expansion: The growth of renewable energy relies on energy storage systems, often powered by batteries. Watch out for policies supporting renewables, advancements in grid-scale energy storage, and the integration of batteries into the power sector. These developments can influence the demand for lithium battery stocks.
• Regulatory Environment: Government regulations and policies are crucial in the battery industry. Stay informed about emissions standards, environmental regulations, and incentives for clean energy solutions. Regulation changes can impact the profitability and market demand for lithium battery related stocks in India.
• Supply Chain Dynamics: The availability and cost of raw materials can affect battery company share price and performance. Monitor factors like mining regulations, geopolitical events, and material sourcing and recycling advancements. These dynamics can influence the cost and supply of battery components.

Overview of the Lithium-ion Battery Sector in India

Lithium-ion batteries were introduced commercially in the 1990s and have since emerged as a leading eco-friendly energy source. It has been powering a range of new technologies, such as modern smartphones, electric vehicles, inverter batteries, children’s electric bikes, lithium-powered batteries, and drones.

The EV spectrum encompasses a variety of vehicles, such as two-wheelers, three-wheelers, four-wheelers, and buses. India predominantly imports most EV batteries, semiconductors, and Battery Management Systems (BMS) from countries like China, Japan, and Korea. However, there has been a notable effort among electric vehicle battery manufacturers in India to develop batteries tailored to the Indian market.

Role of the Government in the EV Transformation Drive

The government recognises the potential of electric vehicles (EVs) and the expansive market opportunities for EVs, solar-distributed renewable energy, energy telecommunications towers, and data centres in India.

In response, the government has allocated a budget of 18,000 crores to produce Advanced Chemistry Cell (ACC) batteries. The government is also seriously considering battery swapping and recently released a much-anticipated draft policy on the subject from the NITI Aayog. This policy accelerates EV adoption nationwide by encouraging electric vehicle tax exemptions.

Advantages of Investing in Battery Stocks

Here are a few benefits of investing in battery stocks: 

• Growth: The demand for lithium-ion battery related stocks in India is skyrocketing, thanks to electric vehicles, renewable energy storage, and our reliance on portable devices. Investing in lithium shares in India allows you to ride the wave of this expanding market and potentially see your investment grow.
• Shift Towards Green Energy: Battery manufacturing company shares are critical to the shift towards clean energy. As the world embraces renewable sources, batteries are essential for storing energy and stabilising power grids. Investing in electric battery stocks in India supports the global push for sustainability and clean energy solutions.
• Technological Innovation: Battery manufacturing companies are at the forefront of cutting-edge advancements. By investing in this sector, you’ll be part of the exciting breakthroughs in battery tech, like improved energy density, faster charging, and longer lifespan. These innovations can fuel the growth and profitability of vehicle battery shares.

Risks of Investing in Battery Shares

Now that we have covered the advantages of investing in battery stocks, let’s understand the potential risks of investing in battery shares.

• Highly Competitive: The battery industry is highly competitive, with many players vying for market share. This competition can impact the growth prospects of individual lithium stocks in India. Look for companies that have a strong competitive edge.
• Regulatory Changes: Government policies and regulations surrounding vehicle battery shares in India can significantly impact the industry. Stay updated on potential changes that could affect the companies you’re considering.
• Supply Chain Challenges: India’s leading battery manufacturing companies depend on a global supply chain for production. Any disturbances in the availability of essential raw materials can impact lithium batteries’ share price and performance. Evaluate how companies handle risks in their supply chain management.
• Market Volatility: Even the best EV battery-related stocks in India can be subjected to market volatility. This can be influenced by various factors, such as economic conditions and investor sentiment. Therefore, be prepared for market fluctuations that could impact any battery company you have invested in.

Tips for Investing in Battery Stocks 

Here are some effective tips that you can follow when considering battery stocks in the Indian stock market::

• Stay Updated: Keep up with the latest happenings in the stock in the battery sector in India. Stay curious about the latest developments, trends, and growing demand for battery technology.
• Look Beyond the Surface: When evaluating good battery companies in India, dig deep into their fundamentals. Take a closer look at their battery company’s share price, revenue growth, profitability, and what sets them apart from the competition. Understanding the company’s strengths and weaknesses is crucial.
• Embrace Innovation: Interested investors can look for battery companies in India that are pushing the boundaries of technology and innovation. These investors might also be interested in battery related stocks in India with a knack for research and development interesting constantly coming up with cutting-edge battery solutions. 
• Ride the Sustainable Wave: Consider all battery company stocks in India actively contributing to the transition to clean and sustainable energy sources. With the increasing demand for renewable energy storage, companies with lithium battery stock in India playing a part in this transition are likely to experience growth.
• Assess the Risks: Investing in lithium-based stocks in India comes with risks. Evaluate potential challenges such as technological obsolescence, competition, regulatory changes, and disruptions in the supply chain.

To Wrap It Up…

Investing in battery sector stocks presents a unique opportunity to capitalise on the growing demand for clean energy and sustainable technologies. With advancements in battery technology and the increasing adoption of renewable energy sources, battery stocks have the potential for significant growth.

However, it’s important to know the risks involved in investing in this sector. These include technological challenges, market competition, regulatory changes, and supply chain vulnerabilities. Therefore, conducting thorough research, diversifying your portfolio, and staying informed about industry developments are essential to navigate these risks.

Frequently Asked Questions About Battery Stocks

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