Exide Industries Limited is a leading Indian manufacturer of lead acid storage batteries, with a diverse product range and a strong market position reflected in its share price and institutional holdings. The company reported significant quarterly growth in total income and profits, while also planning substantial investments to enhance its manufacturing capabilities and product quality. Despite a slight decrease in annual sales, Exide's financial ratios indicate strong liquidity and minimal debt, prompting a positive investment outlook with recommendations for potential buyers.

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Exide Industries – India Moves on Exide
Jul 29 2016 06:34 PM
Exide Industries Limited is a
leading Indian manufacturer of
lead acid storage batteries and
is engaged in the business of
manufacturing storage
batteries from 2.5 ampere-
hours to 20,400 ampere-hour
capacities. The products made
by the Company include
automotive batteries, industrial
batteries, and submarine
batteries. The Company sells its products under SONIC, EXIDE, SF and Standard
Furukawa Brands.
Exide is one of the Top 500 Shares, identified by Dynamic Research based on technical
and fundamental research.
Exide share price has touched a 52 week high of Rs. 184.45 on 14 -Jul -2016 and a 52
week low of Rs.116.00 on 29 -Jan -2016, and is currently trading at Rs. 177.
Shareholding
The promoters holding in the company stood at 45.99%, FII’s have reduced their position
from 16.91% in Jun 2015 to 5.24 % in Jun2016, while DII’s have increased their position
from 15.70% in Jun 2015 to 30.24% in Jun 2016.
Together FII and DII holding in the company stood at 35.48%.Large institutional holding
indicates the confidence of investors in the stock.
Some of the Non Promoters holding securities more than 1% of total number of shares are:
 Hathway Investments Limited: 4.32%
 Nalanda India Equity Fund Limited: 3.56%
 Government pension fund global: 2.04%
 HDFC standard life insurance: 1.50%

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Financial Analysis
Quarterly Results:
For the quarter ended June 2016, the total income from operations of Exide Industries has
reported a growth of 14.17 % on the q-o-q basis to Rs. 2011.07 cr as against Rs. 1761.38 cr
during the last quarter. A boost in total income from operations shows strong development
in business.
The operating profit of Exide Industries on standalone has shown a growth of 19.24% q-o-q
to Rs. 265.86 cr as against Rs. 222.96 cr during the last quarter, This is mainly due to rise
in sales of Exide Industries
The net profit of Exide Industries has registered a growth of 10.41% q-o-q to Rs.196.05 cr
as against Rs 177.55 during the previous quarter.
Annual Results:
For the year ended March 31, 2016, Exide Industries on Consolidated basis reported net
sales of Rs. 9528.64 cr as compared to Rs. 9568.48 cr FY2015 declined by 0.41% YOY.
For the year ended March 31, 2016, Exide Industries on Consolidated basis reported net
profit of Rs. 713.70 cr compared to the profit of Rs. 614.55 cr FY2015, registering a growth
of 16.13% annually.
Ratio Analysis:
Name Ratio
Current Ratio 2.19
Quick Ratio 1.63
Dividend Yield% 1.33
Interest Coverage Ratio 721.33
Debt Equity Ratio 0.03
Return On Asset (%) 11.65
Return On Equity (%) 16.67
The above ratio suggests that the company is operating at a very minimal level of debt on it
shoulders, and have enough liquidity to pay its short-term obligation and can quickly meet

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up with the interest expenses pertaining to its debt obligations. The company has generated
decent profit on money invested by the equity shareholders.
Manufacturing Capacities
Exide has nine factories spread across India. Together, they can produce around 34.2
million units of automobile batteries (including batteries for motorcycle applications)
annually, and over 2,824 million ampere-hours of industrial power every year.
Investment Rationale
 India is well positioned to supply to domestic demand while leveraging export
opportunities. The rise in India’s working-age population is likely to help motivate the
growing market for private vehicles. Increasing affordability, growing prosperity, and
easier accessibility to finance are expected to impact the four-wheelers market positively.
Yet, two-wheelers will remain the preferred choice for a large section of people.
Furthermore, predictions of a better monsoon will enhance the demand for tractors in
rural India.
 Exide Industries is the No. 1 storage battery Company in India
 Exide has wide battery storage range from 2.5Ah to 20,000Ah
 The company has a global presence in more than 40 countries, with 12 regional offices in
India
 The company is implementing a large scale Cast-On-Strap (COS) line at Hosur, which
will be manufacturing large-size batteries in FY 2016-17, enabling faster turnaround and
output. At their Haldia plant, the company has commenced operations of another COS
line for much larger batteries (traction cells).
 Exide has implemented Double Orifice Paster (DOP) at the Hosur Plant for VRLA
batteries for product quality consistently.
 Exide is one of the first few companies to enter into the E-Rickshaw battery segment,
enjoying the first-mover advantage. They have launched batteries in 88Ah, 100Ah and
115Ah in Flat Plate and 100Ah in Tubular plate with six months and 12 months warranty,
respectively. E-Ride Red range has been launched at a lower price to compete with local
brands. The company is working on E-Rickshaw charging station kiosks, which will be
launched shortly.

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 Exide Industries will be investing Rs 1,400 crore over the next two years, of which Rs 700
crore will be at Haldia in West Bengal to introduce high-performance automotive batteries
with new-age punch-grid technology. This venture would help Exide Industries to produce
next generation high-performance long-life batteries. The batteries life would improve by
about 20 percent. The balance Rs 700 crore CapEx will be invested across the other four
automotive battery manufacturing plants in 2017-18. This plan outlay will help Exide
strengthen its market leadership across product segments.
Investment Opinion
The company is in its fourth successive year of profits. At CMP of Rs.178, the stock is
trading at a P/E of 22.67. As per Dynamic Levels, we recommend a buy on this stock at
correction at around 170 levels which is a good weekly support (3 weeks low) for the
stock, with a price target of Rs. 205. The recommended entry price is below current
market price, as 170 is important weekly support and to keep a good Risk to Reward
ratio.

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Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other
ways are solely the personal views of the research team. Users are advised to use the data for
the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022
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 Do not have any financial interest / any actual/beneficial ownership in the subject
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or any compensation or other benefits from the subject company, nor engaged in
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