In the Union Budget 2023-24, Capital Allocations for the modernization and infrastructure development of the Defence Services have been increased to ₹1,62,600 Cr, representing a rise of 6.7% over FY 2022-23.
The Ministry of Defence has set a target of achieving a turnover of $26 Bn in aerospace and defense manufacturing by 2025, including $5 Bn in exports. As of April 2023, a total of 606 Industrial Licences have been issued to 369 companies operating in the Defence Sector.
Here are the four battery stocks that supply batteries to the defence sector
High Energy Batteries (India) Ltd
High Energy Batteries (India) Ltd shares closed at ₹ 598 per share, up 0.68% from the previous close price on the National Stock Exchange on Friday. The company has a market capitalization of ₹536 crores.
High Energy Batteries (India) Limited is engaged in the business of manufacturing Hi-Tech batteries for use in Army, Navy, Airforce, and Launch Vehicles and also commercial batteries for Auto and Standby VRLA applications.
The company manufactures high-value Silver Zinc Batteries and Nickel Cadmium Batteries. The main customers of the Company are the Army, Navy, and Air Force. The company supplies its batteries to various defence applications such as aircraft batteries, Torpedo Batteries, Missile batteries, and Helicopter Batteries.
The company has developed and supplied Nickel Cadmium Batteries for the Indian Air Force and Indian Navy for use in Jaguar, Mirage, Seaking, Sukhoi, Kiran MKI, Kiran MKII, AN32, Seaharrier, Islander Aircraft and Cheetah, Chetak, Mi8, Mi17, Mi25 and Mi35 helicopters for starting & emergency load applications.
High Energy Batteries shares have gained 14% in the last six months and 73% in a year.
The company’s revenue has declined by 37.5 percent yearly, from ₹27.05 crore in Q3FY23 to ₹16.89 crore in Q3FY24. During the same timeframe, Net profit has declined by 54 percent from ₹7.22 crore to ₹3.25 crore.
HBL Power Systems Ltd
HBL Power Systems Ltd shares closed at ₹ 538 per share, down 3.54% from the previous close price on the National Stock Exchange on Friday. The company has a market capitalization of ₹14,924 crores.
HBL Power System Ltd is engaged in the manufacturing and services of different types of batteries, e-mobility, and other products. The company’s product range includes Batteries Nickel Cadmium, Lead Acid, Lithium, and Silver Zinc.
HBL power systems supply batteries to Israel’s armed forces which are used for defense applications such as Silver Oxide Zinc batteries for Torpedo Propulsion, Sealed Lead-acid Batteries for use on Battle Tanks and APC, Lithium Thermal batteries for use in Missiles and Torpedoes,
HBL supplies batteries to several critical applications across sectors including Aviation, Railways, Defense, Oil & Gas, Power, Telecom & Data Centers.
HBL is the world’s second-largest Nickel-Cadmium battery manufacturer, India’s third-largest telecom battery manufacturer, and the only Indian company with Pure Lead battery technology.
HBL Power Systems Ltd reported a 76 percent increase in revenue year on year, from ₹318 crore in Q2FY23 to ₹ 559 crore in Q2FY24. During the same period, net profit increased by 245 percent from ₹20 crore to ₹69 crore.
HBL Power Systems shares have gained a multibagger return of 108% in the last six months and 434% in a year.
Exide Industries Ltd
On Friday, Exide Industries Ltd shares closed at ₹336 per share, up 0.37 % from the previous close price on the National Stock Exchange. The company has a market capitalization of ₹28,526 crores.
Exide Industries Ltd is the world’s fourth-largest manufacturer of automotive and industrial lead-acid batteries Exide Industries Ltd, is primarily engaged in the manufacturing of storage batteries and allied products.
Exide Industries Limited supplies batteries for submarines, including high-end submarine batteries.Exide Industries Limited is also involved in the development of indigenous Type-IV class submarine batteries.
The company reported a 12 percent increase in revenue year on year, from ₹3,538 crore in Q3FY23 to ₹3,980 crore in Q3FY24. During the same period, net profit increased by 2.5 percent from ₹198 crore to ₹203 crore.
Exide Industries Ltd shares have gained 26% in the last six months and 86% in a year.
Amara Raja Energy & Mobility Ltd
On Friday, Amara Raja Energy & Mobility Ltd shares closed at ₹863 per share, down 0.19% from the previous close price on the National Stock Exchange. The company has a market capitalization of ₹14,738 crores.
Amara Raja Batteries Limited is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.The company exports its battery to over 50 countries worldwide.
Amara Raja Energy & Mobility Limited provides batteries for the defense sector for powering communication and surveillance systems.
Amara Raja Industrial Batteries offers a broad range of battery solutions in segments like UPS, Telecom, Railways, Defence, and Motive. Amara Raja Energy & Mobility Limited is the first company to manufacture Valve Regulated Lead-Acid(VRLA) batteries in India.
Amara Raja Energy & Mobility Ltd shares have gained 38% in last six months and 42% in a year.
The company reported a 9.2 percent increase in revenue year on year, from ₹2,637 crore in Q3FY23 to ₹2,881 crore in Q3FY24. During the same period, net profit increased by 7.6 percent from ₹223 crore to ₹240 crore.
Written by Omkar Chitnis
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