Exide Industries is 75+ years old brand of India and one of the largest storage battery companies with widest range of both conventional flooded as well as latest VRLA batteries. The company designs, manufactures, markets, and sells the widest range of lead acid storage batteries in the world from 2.5Ah to 20,600Ah capacity, to cover the broadest spectrum of applications. It manufactures batteries and battery packs catering to various sectors of India such as automotive, power, telecom, infrastructure projects, computer industries, as well as the railways, mining and defence sectors. It also offers complete solution in areas of equipment selection, battery sizing, optimum room layout, installation, operation, and maintenance. It has 10 factories strategically located all over India out of which 7 factories are dedicated to batteries and the other 2 factories manufacture Home UPS Systems being the only company with multi-locational manufacturing units spread across the country and equipped with cutting edge technology machines. It has a manufacturing capacity of 54 million Automotive Batteries produced p.a., 5.8 billion AH of Industrial Power Supply p.a. and 252 KMT per annum Capacity of Three Lead Recycling Plants. On R&D front company’s R&D centre is considered one of the premier battery research facilities in the world and it is recognized by the department of Scientific & Industrial Research under Ministry of Science & Technology, Government of India.  On Global front Exide has subsidiaries in the UK, Singapore and Sri Lanka and its exports span 60+ countries across six continents in a growing list of overseas customers. It has collaborated with Furukuwa of Japan, Oldham of UK and East Penn Manufacturing of US to enhance its manufacturing capability. As on FY23 company generated 92% of revenue from India business and 8% of revenue from its Overseas business and based on sectorial front it generated 70% of total revenue from Automotive sector and 30% of its business from other Industrial Sector.

Fundamentals (FY22-23):

Financial Results:

Company’s Net Sales was Rs 4,371.52 crore in September 2023 up 13.81%, Quarterly Net Profit at Rs. 269.40 crore in September 2023 up 11.69% and EBITDA stands at Rs. 536.47 crore in September 2023 up 14.83% as compared to September 2022. Company’s EPS has increased to Rs. 3.16 in September 2023 from Rs. 2.83 in September 2022.

Key Points:

1. Company has entered into technical collaboration with SVolt a Leading li-ion cell manufacturer, headquartered in China for setting up plant on a turnkey basis for manufacturing of Li-Ion Batteries.
2. Exide Industries Limited has started the construction of one of India’s first multi-gigawatt hour lithium-ion cell manufacturing facility at Haraluru, Bengaluru under its subsidiary, Exide Energy Solutions Limited (EESL).
3. Company has recently inaugurated the state-of-the-art recycling unit of our wholly owned subsidiary, Chloride Metals Limited in Haldia.
4. The company has recently kicked off its Batmobile Doorstep Service facility and extended its scope to its range of inverters and inverter batteries also under a single umbrella. A single WhatsApp message to 70440 00000 will get the service technician nearest to the customer's location to visit and resolve the issue.
5. Company has also launched its own 3-wheeler named EXIDE NEO with Smart design, robust body, unmatched comfort and never-before features.
6. Company has also launched a new range of next generation online UPS named Power NXT. Using cutting edge technology, this online UPS range is targeted at the burgeoning SOHO (small office home office) segment as well as large format retailers.
7. Exide Industries Ltd and Leclanché SA (SIX:LECN), one of the world's leading energy storage solution companies, headquartered in Switzerland have entered into a joint venture to build lithium-ion batteries and provide energy storage systems for India's electric vehicle market and grid-based applications.
8. Recently the company has manufactured and exported two sets of submarine batteries to Algeria and two are in the pipeline for export to Admiralty Shipyard, Russia.
9. Exide has also manufactured its range of solar batteries with enhanced technology, which is also specially equipped to provide high cycling performance. Its products portfolio in this segment includes Exide Sunday Rooftop Solar Systems, Tubular Solar Batteries, Solar Inverters and Solar PV Modules.
10. For banking and IT sector company offers backup power packs under the brand names Exide NXT+, Exide Power Plus, Floods 6EL range, Floods 6EL Plus, Exide Powersafe EHP for Data Centres and Chloride safe power & Chloride dragon battery.

In last 3 Years the stock gave a return of 61.72% as compared to the rise of Sensex and Nifty in the same period.

The Indian EV battery market is poised to grow from $16.77 billion in 2023 to $27.70 billion by 2028, with a compound annual growth rate (CAGR) of 10.56 per cent during the period spanning 2023 to 2028. The advanced chemistry cell battery market demand in India is expected to grow at a CAGR of 50 per cent from 20 GWh in 2022 to around 220 GWh by 2030. Exide Industries being the leading manufacturer of varied range of Batteries is well poised to enjoy a huge amount of revenue inflows from the growth story of Indian EV Battery industry. Company’s collaborations and technical Joint Ventures with various international companies and its global presence helps plays a vital role in its growth story. Company’s foray into growing segments of Solar, Battery packs for Data Centres and Submarines in Defence sectors will help it to diversify its flow of revenue. Mutual Funds have increased its holding by 0.32% to 12.64. Considering good financial performance, diversified portfolio, best in class manufacturing facilities and one of the leading company in Battery manufacturing sector of India, investors can invest in this company for long term period.

 - HET ZAVERI

- info@smartinvestment.in

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Stock Price rose 54.12% and outperformed its sector by 8% in the past year