EXIDEIND - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.5

📊 Core Financials & Profitability

PAT Qtr Growth: ₹187 Cr vs ₹157 Cr — modest 19% rise, although quarterly variation stands at just 1.15%—indicating some volatility.

ROCE (8.65%) & ROE (5.74%): Relatively low returns on capital and equity; below par compared to industry leaders.

EPS (₹9.35): Fair, but doesn’t strongly support the current P/E.

Debt-to-Equity (0.14): Low gearing — good liquidity cushion.

Cash Flow: Not provided directly, but conservative debt + stable PAT suggests healthy operations.

💵 Valuation Snapshot

Metric Value Interpretation

P/E Ratio 43.3 Overvalued vs Industry PE (31.2)

P/B Ratio ~2.4 Reasonable, reflects asset-heavy model

PEG Ratio -0.99 Negative due to low or no growth outlook

Intrinsic Value — Fair value likely in ₹330–₹360 range based on earnings

🚨 Valuation signals caution — price doesn’t align with earnings growth.

🔋 Business Model & Competitive Advantage

Sector: Battery manufacturer for automotive and industrial use — known for lead-acid batteries and investing in lithium-ion capacity.

Strengths

Strong brand recall and distribution network.

Expansion into EV battery segment could unlock long-term growth.

Challenges

Legacy operations are margin-pressured.

Low ROE/ROCE highlights under-utilization of capital.

Institutional Moves

FII ↓ 0.13% — mild bearish sentiment.

DII ↑ 0.24% — cautious optimism from domestic funds.

📈 Technical Trends & Entry Strategy

Current Price: ₹392

DMA 50: ₹385 | DMA 200: ₹394 — flat crossover zone, indicating indecision

RSI (55.5): Neutral

MACD (0.65): Mildly bullish

Volume Spike: Positive signal, though not explosive

🛒 Suggested Entry Zone: ₹360–₹375 Could offer a safer entry near 200-DMA support in case of minor correction.

🧭 Long-Term Holding Guidance

Exide is in a strategic transition phase with EV battery ambitions, but current valuation and core metrics don’t offer strong upside right now. Best suited for patient investors who believe in EV adoption and infrastructure-led battery demand. Monitor margin recovery, lithium segment rollout, and capex impact closely.

Let me know if you want to chart out its peers like Amara Raja or explore EV-focused plays with stronger fundamentals. We can slice and dice this from any angle!

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