Mehabe score: 3 G Factor: 4 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 4 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. Site:EXIDEIND Main Symbol:EXIDEIND
Stock trades at 173.0, above its 50dma 171.92. However it is trading below its 200dma 176.07. The stock remains weak though short term bullish momentum supports price action. It needs to close above 176.07 for bullish price action to continue
The 52 week high is at 220.60 and the 52week low is at 152.60
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 23.3x. WABCO India trades at the industry’s max P/E of 114.14x. EXIDEIND trades at a P/E of 18.5x
– Industry’s mean G-Factor is 2.1 while the mean Piotski score is 7.0. EXIDEIND has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is -5.1%. The max 1- month return was given by Exide Inds.: a return of 4.16 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 4758.0 cr compared to Rs 4011.0 cr for period ended Sep 2020, a rise of 18.6% .
vis-vis 453.0 for period ended Sep 2020 .
Operating Margins contracted -238.3 bps for period ended Sep 2021 vis-vis Sep 2020.
Company reported operating profit of Rs 424.0 cr for period ended Sep 2021 and operating profit margin at 8.9 % for same period.
The EPS for quarter ended Sep 2021 is Rs 2.31 compared to Rs 0.39 for previous quarter ended Jun 2021 and Rs 3.03 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 15755.0 cr for period ended TTM vis-vis sales of Rs 15297.0 cr for the period ended Mar 2021, a growth of 2.9%. The 3 year sales cagr stood at 2.3%.
Net Profit reported at Rs 793.0 cr for period ended TTM vis-vis sales of Rs 810.0 cr for the period ended Mar 2021, falling 2.1%.
Company reported a poor Net Profit CAGR of -2.1% 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 -9% on a 1 Year basis vis-vis a return of -8% over the last 3 Years. – The compounded sales growth on a TTM bassis is 26% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 29% vis-vis a compounded profit growth of 4% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 9.63% vis-vis 9.74% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 23.77% vis-vis 22.58% for Sep 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 above its 50 DMA 171.92 and is trading at 173.0, thus bullish price action wise.
