India's Top EV Battery Makers are set for Sky High Returns

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • Sep 30, 2021 - India's Top EV Battery Makers are set for Sky High Returns

India's Top EV Battery Makers are set for Sky High Returns

Sep 30, 2021

India's Top EV Battery Makers are set for Sky High Returns

A couple of months ago, I wrote about the Top 5 Indian EV Battery Makers to Watch Out for.

I discussed the triggers of the EV battery rush in India and provided a snapshot of this space.

However, since then, the excitement in this space has quadrupled.

Companies that are in sectors far removed from the auto industry have also made plans to enter the EV battery space.

So, what have India's leading EV battery makers been up to in the mean time?

Let's find out.

#1 Amara Raja Batteries

Amara Raja Batteries announced that it plans to invest about US$1 bn in capital expenditure over the next five to seven years.

The company said it will largely use the investment for a 10-12 GWh (gigawatt hours) lithium-ion battery facility under the Advanced Chemistry Cell (ACC), PLI (Production Linked Incentives) scheme of the government.

--- Advertisement ---
The Hidden Opportunity in EV Stocks No One Knows About

With today's fast-changing technology and concern about the environment, the popularity of electric vehicles (EVs) has been on the rise.

Most investors go the usual route of investing in large companies and waiting to rake in profits.

We believe that's not the best approach.

In fact, our research has uncovered a hidden way to make potentially windfall gains from this EV opportunity.

Interested to know more? You can get all details by clicking the link below:

Equitymaster's Latest Research Project - Details

It's also in talks with the Tamil Nadu government for setting up a battery-making unit in the state as part of its expansion plans.

The move comes amid trouble in its home state of Andhra Pradesh where the company and the government are locked in a legal battle in the High Court.

In its latest quarterly results, the company's net profit almost doubled to Rs 1.2 bn for the June 2021 quarter. Net profit margins also came in marginally higher at 6.6%.

However, shares of the company have stayed almost flat in the last year. The stock is down 18.3% in 2021.

Amara Raja Batteries Share Price - 1 Year Performance

#2 Exide Industries

Exide Industries said it plans to set up a Tesla-style giga factory for lithium-ion batteries in the near future using the government's production-linked incentive (PLI) scheme.

The company will finalise details of its cell battery-making facility once the PLI related to the segment is announced.

Exide is also planning to launch its lithium-ion battery assembly factory in Gujarat by end of the financial year 2022. It had delayed plans to bring the facility on-stream due to the pandemic.

Revealed: Richa Agarwal's Top 3 Stocks for 2022

The company already has tie-ups with around 100 OEMs (original equipment manufacturers) and is carrying out the testing for different prototypes.

Exide posted a consolidated net profit of Rs 320 m for the June 2021 quarter. The company had reported a consolidated net loss of Rs 140 m in the same period last year.

Shares of the company are up 9.3% in the last one year. However, the stock is down 5.8% in 2021.

Exide Industries Share Price - 1 Year Performance

#3 Tata Group - Tata Power/Tata Chemicals

Tata Power has partnered with MacroTech Developers (Lodha) to provide end-to-end EV charging stations in all its residential and commercial projects across Mumbai and Pune.

Under this partnership, Tata Power will install EV charging stations at Lodha developments. The chargers will be accessible to all residents and visitors who are EV owners.

Meanwhile, Tata Chemicals has launched a lithium-ion battery recycling initiative, as part of its commitment to sustainability.

--- Advertisement ---
Markets in Downturn? Here's What You Must Do...

The markets corrected sharply in recent days...

And it's impossible not to be reminded of the bloodbath we saw in March 2020.

The truth is...

Stock market corrections and recessions are inevitable and painful...

But this #1 video with Rahul Shah has the power to change how you perceive corrections and crashes. In fact, you'll master the art of turning every market crash to your advantage...

Watch the COMPLETE Lazy Millionaire Summit Right Now

The company aims to recycle 500 tonnes of used Li-ion batteries, to recover valuable metals such as lithium, cobalt, nickel, and manganese.

In its latest quarterly results, the company reported a multi-fold jump in consolidated net profit at Rs 3.4 bn for the June 2021 quarter.

The stock of the company is up over 200% in the last year, while in 2021, it's up by over 90%.

Tata Chemicals Share Price - 1 Year Performance

#4 Hero MotoCorp

Hero MotoCorp said it plans to launch its first battery-powered two-wheeler in March 2022. The electric scooter has been developed independently by Hero.

Chairman and CEO of Hero MotoCorp, Dr Pawan Munjal, teased a pre-production prototype of the upcoming electric scooter during the company's tenth-anniversary celebration.

The company also said that it plans to launch a second electric scooter by the second half of next year. It will develop it with the help of Taiwan-based EV manufacturer Gogoro.

The two brands had announced a partnership earlier this year which involved the use of battery swapping technology in upcoming electric two-wheelers.

Hero MotoCorp reported a 498% year on year (YoY) rise in net profit at Rs 3.7 bn for the June 2021 quarter.

However, shares of the company have fallen 8.4% in the last year and 7% in 2021.

Hero MotoCorp Share Price - 1 Year Performance

#5 Maruti Suzuki

Maruti Suzuki announced it's developing hybrid electric vehicles (HEV) with Toyota.

The company said the technology has a lot of merit as it can scale up without the dependence on external charging infrastructure and offers a good reduction in emissions as well.

In a press release, Maruti Suzuki said,

  • There is a joint testing program of some electric vehicles; these prototypes will be tested starting next month along with Toyota. We are planning to get more consumer feedback on usage patterns, etc.

    Till the time charging infrastructure grows in India you will need self-charging machines, so towards that, we will be using hybrid electric vehicles.

In self-charging cars, an internal combustion engine (ICE) provides energy to the batteries besides wheel rotation.

Since batteries power the car, such a vehicle delivers higher mileage than a pure ICE car.

Maruti Suzuki India reported a net profit of Rs 4.4 bn for the June 2021 quarter against a net loss of Rs 2.5 bn in the year-ago quarter.

The shares of the company have risen only 9.5% in the last year against a 56% rise in the BSE Sensex.

Maruti Suzuki Share Price - 1 Year Performance

How can you ride the EV trend?

Electric vehicles are the hottest story in the market today.

There is huge wealth to be made in this space. But to play it right, you must find the best EV stocks to buy.

Equitymaster's Co-Head of Research, Tanushree Banerjee, believes that the real wealth in electric vehicles is far from the passenger car manufacturers.

To know where the real opportunity lies, you can check out her article in one of the recent editions of Profit Hunter: The Real Wealth in Electric Vehicles.

You can also join her India Revival group on Telegram to get the latest updates.

And if you would like to invest in the EV space, Richa Agarwal, editor of the smallcap recommendation service, Hidden Treasure, recently recommended a proxy play on India's EV revolution.

Hidden Treasure subscribers can read the report here. If you are not a subscriber, here’s where you can sign up.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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...

Ayesha Shetty

Ayesha Shetty is a financial writer with the StockSelect team at Equitymaster. An engineer by qualification, she uses her analytical skills to decode the latest developments in financial markets. This reflects in her well-researched and insightful articles. When she is not busy separating financial fact from fiction, she can be found reading about new trends in technology and international politics.

Equitymaster requests your view! Post a comment on "India's Top EV Battery Makers are set for Sky High Returns". Click here!


More Views on News

India's Edge in Electric Vehicle Stocks podcast (Views On News)

Sep 9, 2021

India has a huge advantage in using climate friendly EV batteries.

Amara Raja Batteries Dips 1% Even as Net Profit Doubles (Views On News)

Aug 16, 2021

The company's net profit doubled to Rs 1.2 bn on strong aftermarket demand across product segments.

AMARA RAJA BATTERIES 2020-21 Annual Report Analysis (Annual Result Update)

Aug 9, 2021 | Updated on Aug 9, 2021

Here's an analysis of the annual report of AMARA RAJA BATTERIES for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of AMARA RAJA BATTERIES. Also includes updates on the valuation of AMARA RAJA BATTERIES.

Top 4 Auto Ancillary Stocks to Watch out for in the EV Space (Views On News)

Jan 6, 2022

With the automobile industry transitioning towards electric mobility, these auto ancillary companies are set to witness robust growth in the years to come.

MRF's Multifold Jump in Bottomline Doesn't Excite Investors (Views On News)

Aug 10, 2021

Here's a rundown on MRF's June quarter results.

More Views on News

Most Popular

Differences Between Trading and Investing

A simple to guide to understand the difference between investing and trading

These 5 Penny Stocks are Held by Rakesh Jhunjhunwala. Worth a Look? (Views On News)

Jan 18, 2022

Rakesh Jhunjhunwala is holding these penny stocks in his portfolio for several years now.

Tech Mahindra's CTC Acquisition: Too Expensive? (Views On News)

Jan 18, 2022

Tech Mahindra's acquisition of European IT-company fails to excite investors.

5 Hidden Tata Group Companies to Add to Your Watchlist (Views On News)

Jan 18, 2022

Here's all you need to know about these five Tata group stocks that aren't as popular as the others.

Insiders are Buying into these 6 Stocks Aggressively. More Details here... (Views On News)

Jan 19, 2022

While promoter holding is an important parameter, it should not be the sole reason for buying a stock.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Jan 28, 2022 12:17 PM


  • Track your investment in AMARA RAJA BATTERIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks