Within the extremely aggressive automotive battery sector, two business giants dominate the race, reflecting evolving market dynamics. With rising demand for electrical mobility and vitality storage, traders should assess their manufacturing, distribution, and R&D capabilities to determine the chief finest positioned for future progress.
Market Share
Exide holds a dominant 50% share of the home battery market, whereas Amara Raja has 35%. This provides Exide an edge in model recognition and distribution.
Share Value Motion
Over the previous 5 yr, Exide Industries has outperformed Amara Raja considerably, offering a return of 97% in comparison with Amara Raja’s 38%.
Exide Industries has a bigger market cap of Rs. 33,001 crore in comparison with Amara Raja’s Rs. 19,573 crore, indicating a extra established presence out there.
Monetary Efficiency
Exide, a debt-free firm, reported Q2FY25 income of Rs. 4,267 crore, an improve of three.9 % YoY, and PAT of Rs. 298 crore, an increase of three.8 % YoY. Amara Raja, with minimal debt, posted income of Rs. 3,251 crore, an improve of 9.8 % YoY, however noticed PAT decline to Rs. 236 crore, a drop of 1.2 % YoY.
Amara Raja has proven stronger income progress with a CAGR of 11% over 5 years, whereas Exide’s income grew solely at 3% throughout the identical interval. By way of revenue progress, Amara Raja outperformed Exide with a CAGR of 13% versus Exide’s 2%.
Exide is taken into account overvalued with a P/E ratio of 39 in comparison with Amara Raja’s 20. General the business P/E is 30 indicating that Exide’s inventory could also be priced above its earnings potential.
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Future Capex plans
Amara Raja is investing Rs. 9,500 crore in a Telangana gigafactory to supply lithium-ion cells and battery packs with a deliberate capability of 16 GWh for cells and 5 GWh for packs by FY27. Collaborating with Ather Power and Gotion Inobat, the corporate is creating superior battery applied sciences to attain EV market management whereas aiming for balanced revenues between new vitality and conventional sectors.
Exide Industries is investing in a lithium-ion cell manufacturing plant in Bengaluru, with a deliberate capability of 12 GWh, the primary section of which is able to start manufacturing by March 2025. The venture, costing Rs. 6,000 crore, will assist Exide seize a major share of the rising EV and vitality storage markets, particularly within the automotive sector.
The corporate has partnered with SVOLT Power Know-how to boost its manufacturing capabilities and plans to consolidate operations beneath Exide Power Options Restricted. With a projected rise in lithium-ion battery demand to 150 GWh by 2030.
Exide Industries is investing Rs. 6,000 crore in a lithium-ion cell manufacturing plant in Bengaluru with a 12 GWh capability, set to start out manufacturing by March 2025. Partnering with SVOLT Power Know-how, it goals to seize a major share of the EV and vitality storage markets, particularly within the automotive sector, consolidating operations beneath Exide Power Options Restricted amid a projected lithium-ion battery demand of 150 GWh by 2030.
Conclusion
Exide Industries excels in market share and inventory efficiency however has slower income progress. Amara Raja Batteries demonstrates larger income and profitability progress nevertheless it has seen slowdown. Many of the progress is pushed by vital investments in future applied sciences, particularly EVs. Buyers ought to assess their danger profiles to resolve between these market leaders.
Written by Fazal Ul Vahab C H
Disclaimer
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