Exide Industries vs Amara Raja: In the competitive automotive battery industry, two giants—Exide Industries and Amara Raja Batteries—dominate the market, reflecting the emerging dynamics of the sector. With the growing demand for electric mobility and energy storage, investors should evaluate their manufacturing, distribution, and R&D capabilities to identify the leader best positioned for long-term growth.
Market Share and Performance
Exide Industries holds a dominant share of 50% in the domestic battery market, while Amara Raja has 35%, giving Exide an edge in brand recognition and distribution. Over the past five years, Exide outperformed Amara Raja in stock returns, delivering 97% gains against Amara Raja’s 38%. Exide also has a market capitalisation of ₹33,001 crore compared to ₹19,573 crore for Amara Raja.
Exide Industries vs Amara Raja – Financial Metrics
In Q2FY25, debt-free company Exide reported revenue of ₹4,267 crore (3.9% YoY growth) and PAT of ₹298 crore (3.8% YoY growth). With minimal debt, Amara Raja posted revenue of ₹3,251 crore (9.8% YoY growth) but PAT declined 1.2% YoY to ₹236 crore.
Over five years, Amara Raja has displayed strong growth with a revenue CAGR of 11% and profit CAGR of 13%, while Exide has a 3% revenue CAGR and 2% profit CAGR.
Valuation and Industry Position
Exide is considered overvalued with a P/E ratio of 39, which is significantly higher than Amara Raja’s 20 and the industry average of 30, suggesting potential overvaluation relative to earnings.
Future investments in EVs and energy storage
Amara Raja Batteries
Amara Raja is investing ₹9,500 crore in a gigafactory in Telangana to manufacture 16 GWh of lithium-ion cells and 5 GWh of battery packs by FY27. The collaboration with Ather Energy and Goshan Inobat aims to develop advanced battery technology, establish the company as a leader in the EV market, and balance revenues between traditional and new energy sectors.
Exide Industries
Exide is building a ₹6,000 crore lithium-ion cell plant with a capacity of 12 GWh in Bengaluru, which is scheduled to start production by March 2025. The company has partnered with SVOLT Energy Technology to enhance production capacities and plans to consolidate operations under Exide Energy Solutions Ltd. With an estimated lithium-ion battery demand of 150 GWh by 2030, Exide aims to capture a significant share of the EV and energy storage markets.
Conclusion
Exide Industries leads in market share and historical stock performance, but lags in revenue and profit growth. On the other hand, Amara Raja exhibits strong growth momentum driven by aggressive investments in EV and energy storage technologies. However, recent profitability challenges indicate potential risks. Investors should carefully consider their risk appetite and investment horizon to choose between these two industry leaders.
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