EXIDEIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.8

📊 Core Financials Breakdown

Profitability

ROCE: 10.2% | ROE: 7.62% — moderate returns, below ideal for a large-cap industrial

EPS: ₹13.2 — decent, but not exceptional given the market cap

PAT Qtr: ₹320 Cr vs ₹255 Cr — solid 14.6% quarterly growth, showing operational momentum

Balance Sheet & Cash Flow

Debt-to-Equity: 0.03 — nearly debt-free, a strong positive

Dividend Yield: 0.47% — modest, but consistent

Book Value: ₹170 — P/B ~2.5, reasonable for the sector

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 32.3 Slightly above industry average (29.1)

PEG Ratio 4.45 Indicates expensive growth expectations

Intrinsic Value ~₹390–₹410 CMP slightly above fair value zone

Valuation is on the higher side, especially with a PEG > 4, suggesting the stock is priced for aggressive growth.

🔋 Business Model & Competitive Edge

Sector: Auto components — specifically batteries for automotive, industrial, and solar segments

Strengths

Market leader in lead-acid batteries

Expanding into lithium-ion technology — strategic for EV future

Strong brand recall and distribution network

Challenges

ROE/ROCE below ideal levels

FII holding slightly down (-0.13%) — cautious sentiment

PEG ratio suggests growth may not justify current valuation

📉 Technicals & Entry Zone

Current Price: ₹425

DMA 50: ₹401 | DMA 200: ₹396 — trading above both, bullish trend

RSI: 63.9 — nearing overbought zone

MACD: Positive — momentum intact

📌 Suggested Entry Zone: ₹390–₹405

A dip near the 50 DMA would offer a better entry point with lower downside risk.

🧭 Long-Term Holding Guidance

Hold if invested: Solid fundamentals, low debt, and EV exposure make it a decent long-term play.

Accumulate on dips: Ideal for investors seeking exposure to India’s battery and energy storage growth story.

Let me know if you'd like a peer comparison with Amara Raja or a forecast model based on lithium-ion expansion.

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