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E-Vehicles & Battery Stocks

The Indian automobile industry has to go through an amazing change, Now the future of the automobile industry is Electronic Vehicles. The India Electric Vehicle Market was valued at USD 5 billion in 2020 and is expected to reach USD 47 billion by 2026 registering a CAGR of above 44% during the forecast period (2021 – 2026).

The EV has established a market in the USA and other countries with rapid growth in the Indian market. The major benefits of electric vehicles are that it’s total pollution-free and with low maintenance. In the USA market, electric vehicles are in great demand and across the globe, the demand seems to increase. 

The pandemic hit a lot of industries and one of the major set back is the automobile industry. The sales of vehicles across all the segments have gone down drastically in the country.

The Electric Vehicle market, which had just started to move up and was witnessed a stable rise in its sales, also become a victim of it. Overall, the automobile sector had just started to recover from the first wave of virus when the second, more serious, wave struck earlier this year adding to the misery of the vehicle manufacturers.

But once when things get normal, electric vehicles will witness a  boom. With a population of more than 1.3 billion, the market potential of India is second only to China. The world’s most populous country has the largest share in the EV market and it contributes to more than 30 pc of the total EV sales around the globe.

The EV market in India has huge potential. One of the reasons for that is an average Indian consumer likes his/her vehicle to be economical and easy on the pocket and the operating cost of an EV is a mere 80 paisa per kilometre, far less than what an ICE-based vehicle costs.

Moreover, battery prices declining since 2010, electric vehicles are expected to become almost as cheap as fuel-powered cars in the future.

India also has a lot to gain from the widespread adoption of e-mobility. Under the ‘Make-In-India’ program, the manufacturing of e-vehicles and their associated components is expected to increase the share of manufacturing in the country’s GDP to 25 per cent by 2022.

The recent uplift in the sales of e-vehicles in the country points towards a rising preference for the same. There is no doubt about it, that the future belongs to EV’s with fast-charging batteries and extended driving range.

The government of India also looking to grant some amount under PLI Scheme so that it will boost up the manufacturing of batteries in the country itself. 

The major requirement in EV is Lithium-Ion Batteries which is a major requirement for the electric vehicle, several major companies that are manufacturing the same will also get benefited from it.

Major Batteries Stocks in India.

1. Exide Industries

Headquartered in Kolkata, Exide Industries Ltd manufactures lead-acid storage batteries and inverters. The company manufactures lead-acid storage batteries from 2.5 ampere-hours to 20,600 ampere-hours. The products manufactured by the company include automotive batteries, industrial batteries, and submarine batteries.

Company with a market cap of Rs.15861 & ROE 11.8% with ROCE16.8% & Dividend Yield 2.20% 

2. Brands & Products 

With 7 world-class batteries and 2 inverter manufacturing factories across India, it offers the widest battery range for the widest applications, possible. The products are sold across the world, under its brand names EXIDE, CHLORIDE, SF SONIC, CEIL, INDEX & DYNEX. 

3. Amara Raja Batteries

The flagship company of the Amara Raja Group is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry. It is looking to build a Lithium-ion assembly plant soon. The firm is already working in collaboration with different state governments to promote the use of electric vehicles. 

Company with a market cap of Rs.13436 & ROE 18.6% with ROCE23.5% & Dividend Yield 1.40% 

4. Brand & Products

Amara Raja is the preferred supplier to major telecom service providers, Telecom equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways, and Power, Oil & Gas among other industry segments.

5. Eveready Industries Ltd

Eveready Industries India is engaged in the business of marketing dry cell batteries, rechargeable batteries, flashlights, packet tea, general lighting products, small home appliances, and confectioneries which come under a single business segment known as Consumer Goods.

Company with a market cap of Rs.2135 & ROE 10.5% with ROCE 15.1% & Dividend Yield 0% 

6. Brands & Products

Dry Cell & Rechargeable Batteries, Flashlights & Lanterns, Lamps & luminaries (Eveready Cell, Power cell)

7. HBL Power 

HBL Power Systems Limited is engaged in the business of manufacturing batteries. The Company’s segments include Batteries and Electronics.

Company with a market cap of Rs.1055 & ROE 2.99% with ROCE 6.06% & Dividend Yield 0.79% 

Brands & Products

Batteries. We manufacture a wide range of specialized batteries in Nickel, Lead, Silver Zinc & Lithium

Electronics: Railway electronics, Defense Electronics & Thyristor control rectifiers.

 

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