Budget 2022: Tata Power, Exide Industries among top 4 stock picks from battery & renewable energy space

In a big boost to battery and EV firms, Finance Minister Nirmala in the Budget 2022 announced framing of battery swapping policy to facilitate EV charging stations for automobiles. This move is expected to help battery management companies and boost EV sales with a focus on clean mobility as the government plans to develop special mobility zones for electric vehicles.  
Harsh Tewaney, Auto Sector Analyst, Ashika Stock Broking, is of the view that battery swapping policy will help overcome a key hurdle of setting up charging stations, which hitherto has been moving at a slower-than-desired pace, thereby acting as a deterrent for customers willing to switch to electric vehicles.  

"Making a provision for interoperability standards as announced by the Finance Minister will allow industry to collaborate, innovate and expedite a robust battery swapping network around the country. This will act as a catalyst to promote electrification as many customers are apprehensive of the time taken to charge a battery and the availability of a swappable battery will be as good as re-fuelling a conventional vehicle which will go a long way in assuaging their anxiety," he adds.

See Zee Business Live TV Streaming Below:

Brokerage Houses Arihant Capital and Hem securities have picked Tata Power, Exide Industries, Reliance Indusltries Ltd (Ltd) and Borosil Renewables as top bets from battery and renewable energy space.   

Tata Power : With Budget focusing on green energy, promoting fully integrated solar PV manufacturing units will help this Tata Group stock in the near to long-term. The government commitment towards meeting the 280 GW of solar capacity by 2030 also works in favour of this company. Tata Power stock has surged nearly 200% in the last one year as on February 2, 2022.  

Exide Industries: With the government shifting focus on EV space by bringing up battery swapping policy, battery manufacturer Exide Industries is set to capitalise the opportunity that would open up with the announcement made in the Budget.  

Private sector will be encouraged to create sustainable and innovative business models for battery and energy as a service, improving efficiency in the EV ecosystem and thus bring focus on one of the leading manufacturers of batter—Exide Industries.

Reliance Industries: Mukesh Ambani-led Reliance Industries is another company to benefit the most from budget announcements related to battery space. Reliance BP Mobility (RBML), the fuel retailing and battery charging arm of RIL, and Mahindra Group have forged a non-binding agreement for exploring creation of Electric Vehicle (EV) products and services in late December. With the private sector in battery and vehicle use case being encouraged, RIL is set to benefit from the budget provisioning in this space.  

Borosil Renewables Ltd: An additional allocation of Rs 19,500 crore for solar modules under performance linked incentives (PLI) scheme works well for this Company as India imports most of its solar modules from China. With the proposal to include solar module manufacturers in the PLI scheme, Borosil Renewables is set to benefit. Saving energy is also being worked by Energy service company business model that facilitates capacity building and awareness of energy audits.