Please refer to important disclosures at the end of this report
1
Exide Industries Limited (EIL) is a storage battery company which designs,
manufactures, markets and sells a range of lead acid storage batteries. The
company manufactures batteries for the automotive, power, telecom,
infrastructure projects, computer industries, as well as the railways, mining and
defense sectors. The company market share is stable in automotive replacement
segment since past 2 quarters with reasonable pricing power. It plans to invest
major capex in technology upgrade and new products with better quality and
efficiency. The company’s focus on gaining market share in replacement market
is driving sales. With the company being the key beneficiary of uptick in auto
OEMs, technology upgradation, improving after sales service and cost cutting
measures will boost margin. EIL is likely to be a key beneficiary of GST
implementation in India and also to benefit from the lower indirect tax outgo and
entry into the un-organized market.With strong brand and deep distribution
network, it seems to show further improvement in the demand. The Compan
y
has planned ~`14bn capex spread over performance and more durable
automotive batteries in India. The company has also shown an improvement in
W
orking capital in days from 50days in FY15 reduced to 34days with the help o
f
decrease in debtors which if continue will be a positive sign for the company. The
Company is virtually debt free. The company has been maintaining a health
y
dividend payout of 29.05% (Div Yield: 1.3%). The company has reported a
healthy RoE of 17.52% over the last 5 years. Hence Buy.
BUY
CMP `194
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 46.0
MF / Banks / Indian Fls 24.6
FII / NRIs / OCBs 9.3
Indian Public / Others 20.2
Abs. (%) 3m 1yr 3yr
Sensex (3.4) 11.0 26.9
Exide Industries (4.9) 55.4 86.4
52 Week High / Low 208/116
Avg. Daily Volume 2,39,172
Auto Ancillaries
Market Cap (
`
cr) 16,490
1
BSE Sensex 27,117
Nifty 8,392
Face Value (
`
)
Reuters Code EXID.BO
EXID@IN
0.9
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Exide Industries
Others |
A
uto Ancillaries
January 24, 2017
Exide Industries | Auto Ancillaries
January 24, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Exide Industries
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
(
-5% to -15%
)
Sell
< -15
)