4 Beaten Down BESS Stocks to Watch Out for

#1 Rajesh Exports

First on the list is Rajesh Exports.

Though it's not a core BESS company, it has taken exposure to the theme by way of setting a subsidiary in 2022.

Rajesh Exports entered the BESS space through ACC Energy Storage, which is part of the ACC PLI scheme and is setting up one of India's first large-scale Advanced Chemistry Cell gigafactories.

Currently, the focus is on building a lithium-based battery manufacturing for EVs and stationary storage. As operations begin to take shape, the focus now shifts to execution and commercial scale.

Primarily, the company is engaged in the business of importing gold and manufacturing gold jewellery, medallions, and other products. It exports these products across the world, mainly to Europe and UAE, apart from selling domestically in the wholesale market and through its own retail stores.

It has manufacturing facilities in Bangalore, Cochin, and Dubai with an aggregate capacity of 350 tons per annum with the capability to produce a wide range of handmade, semi-machined & complete automated gold jewellery & gold products.

The group, through its refinery facilities in Switzerland and India has a gold refining capacity of 2,400 tons per annum.

Moreover, its retail presence is carried under the brand "SHUBH Jewellers" with 82 showrooms in Karnataka.

Coming to its financials, while its sales have grown at a compounded annual growth rate (CAGR) of 17%, profit has fallen from Rs 8 billion in FY21 to Rs 949 million (m) in FY25.

The company's ROE and ROCE have averaged 6% and 7% during the same period.

If the company's BESS segment delivers on its roadmap, energy storage could become a meaningful second engine of growth-positioning Rajesh Exports beyond just gold.

For more details, check out Rajesh Exports' financial factsheet.

#2 Prostarm Info Systems

Second on the list is Prostarm Info Systems.

The company is engaged in designing, manufacturing, and selling energy storage and power conditioning equipment.

Its products include uninterruptible power supply (UPS) systems, inverters, lift inverters, lithium-ion battery packs, voltage stabilisers, and transformers.

It also trades in third-party batteries and power components and manages reverse logistics and disposal of old systems through buybacks.

In 2018, the company diversified into the solar EPC segment for rooftop solar photovoltaic (PV) projects.

Currently, it has a presence in 18 states and one Union Territory, with 22 branch offices and two storage facilities.

Coming to its financials, over the past 3 years, its sales and net profit have grown at a CAGR of 27% and 39%, respectively.

Its ROE and ROCE have averaged 29% and 41%, respectively.

With a well-qualified management team and established track record and reputed clientele across diversified sectors, the company is set to benefit as the BESS theme picks pace.

It also has a strong order book, which provides strong revenue visibility for the medium term.

For more details, check out Prostarm's financial factsheet.

#3 Indo National

Third on the list is Indo National.

Indo National, also known as Nippo, has been manufacturing and marketing batteries, LED products, torches, electrical accessories, mosquito bats, razors and blades since its establishment in 1972.

It offers a range of portable lighting solutions, including both battery-operated and rechargeable options. The company's flashlights come in various colours, wattages, sizes and price ranges.

Its LED lighting products consist of downlights, panel lights, rechargeable bulbs and spotlights. The electrical accessories include flex boxes and spike guards. Its wide range of mosquito swatters feature terminator mini, terminator II and guard models.

Its battery offerings include alkaline and zinc carbon types. In addition, the company has around 3,200+ distributors spread across India and has subsidiaries including Kineco, Kineco Kaman Composites India, Kineco Alte Train Technologies and Helios Strategic Systems.

In November 2024, the company decided to enter into the EV battery and e-waste recycling market, along with battery of home-care launches.

Coming to its financials, over the past 5 years, while there has only been a marginal growth in its overall sales, the net profit has grown at a CAGR of 64%.

Its 5-year average ROE and ROCE stand at 11% and 16%, respectively.

Apart from BESS, it has also entered a few interesting markets. In November 2024, it entered the EV battery and e-waste recycling market, along with battery of home-care launches.

Going forward, as these segments are back in focus and demand-supply equations turn favourable, Indo National could be among the key beneficiaries.

For more details, check out Indo National's financial factsheet.

#4 Panasonic Energy

Last on the list is Panasonic Energy.

Panasonic Energy is a part of global Panasonic Corporation.

It is a certified manufacturer & supplier of dry cell batteries and lighting products including metal jacketed dry battery, high performance pencil battery, zinc-chloride technology, and eco-friendly batteries in India.

Most of its business comes from domestic operations, wherein it operates in 4 segments of batteries.

Coming to its financials, over the past 5 years, its sales and net profit have grown at a CAGR of 6% and 30%, respectively.

The nominal growth in sales was due to stalled production of its R20 and R14 batteries post March 2021, due to inadequate demand in the domestic market.

With demand gradually returning in its legacy battery segments, a recovery in volumes could support steadier revenue growth going ahead.

At the same time, any strategic push towards advanced energy storage solutions or alignment with the broader BESS opportunity could act as a meaningful trigger.

Investors should keep track of how effectively the company is adapting its product mix to evolving energy needs while sustaining its margin profile.

For more details, check Panasonic Energy's financial factsheet.

Conclusion

The BESS opportunity is at an intersection of two powerful trends, in the form of renewable energy expansion and the growing need for reliable power storage.

While long-term story remains compelling, the recent correction in several stocks shows that markets don't move in a straight line.

For investors, this creates a window to track quality names more closely and identify businesses that can generate profits as the sector evolves.

As always, it's important to separate narrative from numbers.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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...