5 Fundamentally Strong EV Battery Stocks Down up to 50% from 52-Week Highs

The electric vehicle (EV) revolution is gaining momentum globally, and India is no exception.

With ambitious government policies, increasing consumer adoption, and a strong push for localization of EV components, the demand for lithium-ion batteries and energy storage solutions has skyrocketed.

Despite this promising long-term outlook, several EV battery-related stocks have fallen significantly, some up to 50% from their highs.

However, for savvy investors, this downturn presents an opportunity to accumulate fundamentally strong companies at attractive valuations.

Let's have a look at the top 5 EV battery stocks down up to 50% from 52-weeks highs.

#1 Hero MotoCorp

Hero MotoCorp is the world's largest manufacturer of motorcycles and scooters by volume.

Headquartered in New Delhi, the company dominates the two-wheeler market with popular models like the Splendor, HF Deluxe, Passion, Xpulse, Xtreme, Maestro, and Destini.

The stock has corrected 44.2% from its 52-week highs of Rs 6,426.4.

Hero MotoCorp has been riding a powerful wave of growth, with an impressive 3-year CAGR of 6.9% in revenue and 8.4% in profits.

The company's stronghold in the commuter motorcycle segment generates consistent demand, especially in rural and semi-urban markets.

Hero's strategic pricing, cost efficiencies, and premium product launches have contributed to higher margins and profitability.

A significant factor in its growth has been expansion into the EV segment with the launch of VIDA V1. It has strategic collaborations with Gogoro for battery swapping and Ather Energy for EV tech.

This forward-looking approach has positioned Hero as a key player in India's evolving EV landscape.

Furthermore, Hero MotoCorp has aggressively strengthened its research & development capabilities, with innovation hubs in India and Germany focusing on cutting-edge battery technology, fuel efficiency improvements, and next-gen mobility solutions.

Partnerships with BPCL for EV charging infrastructure and continued investments in sustainability initiatives have further bolstered the company's long-term growth strategy.

In FY24, Hero MotoCorp reported a Return on Equity (ROE) of approximately 21.2% and a Return on Capital Employed (RoCE) of around 29.3%.

Hero MotoCorp plans to launch its Vida brand electric scooters in the UK and other European countries by mid-2025, marking its entry into developed markets.

For more details, see the HERO MOTOCORP company fact sheet.

#2 Exide Industries

Exide Industries is a leading Indian company specialising in lead-acid batteries and energy storage solutions. Established in 1947, Exide is headquartered in Kolkata, and is a dominant player in the automotive, industrial, and renewable energy battery segment.

The stock has corrected 43.6% from its 52-week highs of Rs 620.3.

Exide Industries has delivered a 3-year CAGR of 17.4% in revenue and a 6.4% in profits.

A major contributor has been its strategic expansion into lithium-ion batteries. With increasing demand for sustainable energy solutions, Exide's joint venture with Swiss company Leclanche has positioned it as a key player in India's EV battery market.

Beyond EVs, Exide continues to dominate the lead-acid battery segment, supplying automotive, industrial, telecom, and solar energy sectors.

The recent budget announcement of the Finance Minister exempting scrap of lithium-ion battery from BCD (basic customs duty) in Budget 2025-26 has helped the company reduce costs.

The demand for backup power solutions, inverters, and UPS systems, especially in infrastructure and data centers, has boosted revenue.

Additionally, investments in R&D and state-of-the-art manufacturing facilities have improved efficiency and profit margins.

In FY24, the company reported a ROE of 6.9% and a RoCE of 10.3%.

Three months ago, Exide partnered with Green Line Mobility Solutions to integrate eco-friendly LNG-powered trucks into its logistics operations.

In April 2024, Exide Industries signed a Memorandum of Understanding with Hyundai Motor Company and Kia Corporation to localise lithium iron phosphate (LFP) battery production in India.

Going forward, the company plans to invest in lithium-ion technology to cater to both mobility and energy storage markets.

For more details, see the EXIDE INDUSTRIES company fact sheet.

#3 Amar Raja Energy & Mobility

Amar Raja Energy & Mobility is one of India's leading manufacturers of lead-acid and lithium-ion batteries, catering to the automotive, industrial, and energy storage sectors.

The stock has corrected 41.2% from its 52-week highs of Rs 1,775.9.

The company has delivered a 3-year CAGR of 17.9% in revenue and 13% in profits.

One of the biggest drivers has been its aggressive push into lithium-ion battery technology. The company's gigafactory project in Telangana, with an initial 16 GWh capacity, is a game-changer, positioning Amara Raja as a key player in India's EV ecosystem.

Beyond EVs, Amara Raja continues to dominate the lead-acid battery segment, with high demand from the automotive, telecom, UPS, and renewable energy sectors.

Its long-standing partnerships with major OEMs like Maruti Suzuki, Hyundai, and Tata Motors have ensured a steady flow of business. The rapidly expanding aftermarket and replacement battery demand have further fuelled revenue growth.

As of FY24, Amara Raja Energy & Mobility Ltd. (formerly Amara Raja Batteries Limited) reported a ROE of 13.7% and a RoCE of 18.8%.

In June 2024, Amara Raja Advanced Cell Technologies Pvt. Ltd., a wholly-owned subsidiary entered into a licensing agreement with GIB EnergyX Slovakia s.r.o., a subsidiary of Gotion High-Tech Co. Ltd.

In August 2024, Amara Raja signed an MoU with Piaggio India to develop and supply LFP lithium-ion cells and chargers for Piaggio's electric vehicles.

Going forward, the company's next year's capex is expected to reach approximately Rs 10 bn including Rs 3-4 bn for lead-acid batteries.

For the new business, a Rs 95 bn plan has been announced to set up an Amara Raja Giga Corridor with a capacity of 16 GWh for cells and 5 GWh for battery packs over the next ten years.

For more details, see the AMARA RAJA ENERGY & MOBILITY company.

#4 Tata Chemicals

Tata Chemicals is a diversified chemical and sustainable solutions company under the Tata Group, operating in basic chemistry, specialty chemicals, and new-age materials.

The company is investing in lithium-ion battery materials, energy storage solutions, and battery recycling.

The stock has corrected 33.5% from its 52-week highs of Rs 1,247.3.

The company has delivered a 3-year CAGR of 14.8% in revenue and a 1% in profits.

The revenue was driven by a combination of strategic expansion, operational excellence, and favourable industry trends.

The company is actively developing lithium-ion battery components, including high-purity lithium carbonate and battery-grade materials, which are essential for the growing EV ecosystem.

As part of the Tata Group's broader EV strategy, Tata Chemicals is focusing on sustainable and indigenous battery supply chains, reducing India's dependence on imports for critical raw materials.

The company has also been exploring recycling technologies for lithium-ion batteries, ensuring a circular economy approach to battery manufacturing.

In FY24, the company reported a ROE of 2% and a RoCE of 5.4%.

The company is collaborating with the Council of Scientific and Industrial Research-Central Electrochemical Research Institute (CSIR-CECRI) and the Centre for Materials for Electronics Technology (CMET) for the development of battery materials, cells, and recycling technologies.

For more details, see the TATA CHEMICALS company fact sheet.

#5 Kabra Extrusiontechnik (KET)

Kabra Extrusiontechnik Ltd. (KET), established in 1962, is a prominent Indian manufacturer and exporter of plastic extrusion machinery.

It specialises in equipment for producing pipes, profiles, and blown films. The company started a lithium-ion battery pack business in FY21.

The stock has corrected 45.8% from its 52-week highs of Rs 590.

Over the past three years, Kabra has delivered a 30.1% CAGR in revenue and 11.3% CAGR in profits.

The company's expansion into the EV battery segment, particularly in lithium-ion battery packs and Battery Management Systems (BMS), has opened up lucrative new opportunities.

The demand for plastic extrusion machinery driven by sectors such as infrastructure, agriculture, and packaging has also boosted sales.

In FY24, Kabra Extrusiontechnik reported a ROE of 7.5% and a ROCE of 11.8%.

In December, KET collaborated with NuTech Pipes to strengthen relationships within the Oriented Polyvinyl Chloride (OPVC) sector.

In March 2022, KET's battery division, Battrixx, acquired Pune-based Varos Technology. Varos specialises in developing IoT tools for EV infrastructure and battery management systems.

Under its Battrixx brand, it's expanding its EV battery manufacturing capacity to 2 GWh by FY25, focusing on the e-mobility segment, including electric two-wheelers, three-wheelers, and light commercial vehicles, and is also exploring partnerships for Battery Energy Storage Systems (BESS).

For more details, see the KABRA EXTRUSION company fact sheet.

Conclusion

As the world shifts towards sustainable mobility, EV adoption in India is accelerating rapidly, fuelled by government policies, consumer demand, and advancements in battery technology.

A crucial component of this revolution is EV batteries, the backbone of electric mobility, which has emerged as a massive growth sector.

However, despite the strong long-term outlook, several EV battery-related stocks have witnessed a steep correction of up to 50% in recent months.

This decline has been driven by various short-term factors such as global lithium price fluctuations, temporary supply chain disruptions, and broader market weakness.

Yet, for investors with a long-term perspective, this correction presents an opportunity to accumulate fundamentally strong companies at attractive valuations.

The structural growth story of India's EV battery market remains intact. So look beyond the noise and focus on the bigger picture.

The EV battery sector remains one of the most promising investment themes of this decade. The underlying demand for batteries is set to explode as India transitions toward sustainable energy.

Companies that invest in innovation, expand production capacities, and secure key partnerships will emerge as market leaders in the years ahead.

For investors who believe in the long-term EV megatrend, this correction should be seen as an opportunity rather than a setback.

However, to make informed decisions, it's crucial to assess the company's fundamentals, including its financial performance, corporate governance practices, and growth prospects.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...