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EXIDEIND - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.5

Last Updated Time : 04 May 26, 11:57 am

Fundamental Rating: 3.5

Stock Code EXIDEIND Market Cap 30,647 Cr. Current Price 361 ₹ High / Low 431 ₹
Stock P/E 28.9 Book Value 180 ₹ Dividend Yield 0.55 % ROCE 10.2 %
ROE 7.62 % Face Value 1.00 ₹ DMA 50 329 ₹ DMA 200 355 ₹
Chg in FII Hold -0.61 % Chg in DII Hold 0.42 % PAT Qtr 264 Cr. PAT Prev Qtr 221 Cr.
RSI 68.0 MACD 12.2 Volume 24,27,465 Avg Vol 1Wk 35,54,920
Low price 287 ₹ High price 431 ₹ PEG Ratio 3.98 Debt to equity 0.02
52w Index 51.1 % Qtr Profit Var 7.84 % EPS 12.4 ₹ Industry PE 27.3

Financials & Valuation:

EXIDEIND shows moderate fundamentals. ROCE (10.2%) and ROE (7.62%) reflect weak efficiency in capital utilization. EPS of 12.4 ₹ supports profitability, with quarterly PAT rising to 264 Cr. from 221 Cr., showing steady growth. Debt-to-equity is very low at 0.02, ensuring financial stability.

Valuation Indicators:

P/E ratio of 28.9 is slightly above the industry average (27.3), suggesting fair-to-premium valuation. Book Value of 180 ₹ compared to current price of 361 ₹ shows moderate premium pricing. PEG ratio of 3.98 indicates stretched valuation relative to growth. Dividend yield of 0.55% provides modest income support.

Business Model & Health:

EXIDEIND, a leader in batteries and energy storage solutions, benefits from EV adoption and renewable energy demand. Profitability metrics are modest, but strong balance sheet and sector tailwinds support long-term prospects. FII holdings declined (-0.61%), while DII holdings increased (+0.42%), showing mixed investor sentiment.

Entry Zone & Holding Guidance:

Technically, support lies around 345–355 ₹ (near 200 DMA), with resistance near 375–385 ₹. Entry near support levels offers favorable risk-reward. Long-term holding is justified given industry tailwinds, though efficiency metrics need improvement.


Positive

- Very low debt-to-equity (0.02).

- EPS of 12.4 ₹ with steady PAT growth.

- DII holdings increased (+0.42%).

- Sector tailwinds from EV adoption and renewable energy.

Limitation

- Weak ROCE (10.2%) and ROE (7.62%).

- PEG ratio (3.98) indicates stretched valuation.

- P/E ratio slightly above industry average.

- RSI (68.0) suggests near overbought levels.

Company Negative News

- Decline in FII holdings (-0.61%).

- Efficiency metrics remain weak compared to peers.

Company Positive News

- Quarterly PAT improved to 264 Cr. from 221 Cr.

- DII holdings increased, reflecting domestic support.

- Strong demand outlook in battery and energy storage.

Industry

- Battery and energy storage sector benefits from EV adoption and renewable energy integration.

- Industry PE (27.3) aligns closely with EXIDEIND, supporting fair valuation.

- Long-term growth supported by electrification and infrastructure demand.

Conclusion

EXIDEIND is moderately strong with stable earnings, low debt, and sector growth drivers. Entry near 345–355 ₹ offers a favorable setup. Long-term investors can hold with confidence, though efficiency metrics and valuation premium should be monitored.

Would you like me to extend this into a peer benchmarking overlay comparing EXIDEIND against Amara Raja Batteries and HBL Power Systems to highlight relative positioning in the energy storage sector?

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