Mehabe score: 2 G Factor: 6 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 6 and Piotski score of 6.
Description
Exide Industries Ltd is primarily engaged in the manufacturing of storage batteries and allied products in India.
Its subsidiary, Exide Life Insurance Company Ltd (ELI) is engaged in the business of life insurance products to the customers through various distribution channels including individual agents, corporate agents, banks, etc.
Main Points
Storage Batteries Segment (74% of revenues)
The company is the leading storage batteries manufacturer in India with leader in almost all categories in Automotive, Industrial, and submarine sectors.
Presently, Automotive sector accounts for 73% of revenues of the segment, followed by industrial (26%) and submarine (1%).
The industrial battery customers are primarily from power, solar, railways, telecom, UPS sectors.Site:EXIDEINDMain Symbol:EXIDEIND
Stock trades at 179.0, below its 50dma 183.68 and below its 200dma 183.85. The stock remains bearish on technicals
The 52 week high is at 220.60 and the 52week low is at 150.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 29.99%
Weakness
– The company has delivered a poor sales growth of 10.05% over past five years.
– has a low return on equity of 12.47% for last 3 years.
Competition
– The industry trades at a mean P/E of 33.6x. Minda Industries trades at the industry’s max P/E of 98.67x. EXIDEIND trades at a P/E of 17.8x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 7.0. EXIDEIND has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 2.8%. The max 1- month return was given by Minda Industries: a return of 16.3 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 3543.0 cr compared to Rs 2526.0 cr for period ended Jun 2020, a rise of 40.3%
Operating Profits reported at Rs 207.0 cr for period ended Jun 2021 vis-vis 133.0 for period ended Jun 2020 .
Operating Margins expanded 57.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.39 compared to Rs 3.79 for previous quarter ended Mar 2021 and Rs -0.13 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 16313.0 cr for period ended TTM vis-vis sales of Rs 15297.0 cr for the period ended Mar 2021, a growth of 6.2%. The 3 year sales cagr stood at 3.5%.
Net Profit reported at Rs 853.0 cr for period ended TTM vis-vis sales of Rs 810.0 cr for the period ended Mar 2021, rising 5.0%.
Company recorded a Net Profit CAGR of 0.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 2263.0 cr for period ended Mar 2021 vis-vis Rs 1619.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 12.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 16% on a 1 Year basis vis-vis a return of -14% over the last 3 Years. – The compounded sales growth on a TTM bassis is 22% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 41% vis-vis a compounded profit growth of 4% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 11.82% vis-vis 11.95% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 18.87% vis-vis 17.49% for Mar 2021
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 29.99% – The company has delivered a poor sales growth of 10.05% over past five years.
– has a low return on equity of 12.47% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 183.68 and is trading at 179.0. Shows a near term lack of buying interest.
