Within the extremely aggressive automotive battery sector, two business giants dominate the race, reflecting evolving market dynamics. With rising demand for electrical mobility and power storage, traders should assess their manufacturing, distribution, and R&D capabilities to establish the chief finest positioned for future development.
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 Worth 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 available in the market.
Monetary Efficiency
Exide, a debt-free firm, reported Q2FY25 income of Rs. 4,267 crore, a rise 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, a rise of 9.8 % YoY, however noticed PAT decline to Rs. 236 crore, a drop of 1.2 % YoY.
Amara Raja has proven stronger income development with a CAGR of 11% over 5 years, whereas Exide’s income grew solely at 3% throughout the identical interval. By way of revenue development, 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 provide 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 power 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 can start manufacturing by March 2025. The undertaking, costing Rs. 6,000 crore, will assist Exide seize a major share of the rising EV and power storage markets, particularly within the automotive sector.
The corporate has partnered with SVOLT Power Expertise to boost its manufacturing capabilities and plans to consolidate operations below 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 begin manufacturing by March 2025. Partnering with SVOLT Power Expertise, it goals to seize a major share of the EV and power storage markets, particularly within the automotive sector, consolidating operations below 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 development. Amara Raja Batteries demonstrates increased income and profitability development nevertheless it has seen slowdown. A lot of the development is pushed by vital investments in future applied sciences, particularly EVs. Buyers ought to assess their danger profiles to determine between these market leaders.
Written by Fazal Ul Vahab C H
Disclaimer
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