EXIDEIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 3.7

📊 Financials Overview:

• Revenue & Profit Growth: PAT declined from 320 Cr. to 221 Cr. (↓ 25.9%), showing weak quarterly momentum.
• Margins: ROCE at 10.2% and ROE at 7.62% indicate moderate profitability.
• Debt Ratios: Debt-to-equity at 0.02 reflects a virtually debt-free balance sheet.
• Cash Flows: Dividend yield at 0.56% provides modest shareholder returns.

💹 Valuation Indicators:

• P/E Ratio: 29.6 vs Industry PE of 30 → fairly valued relative to peers.
• P/B Ratio: Current Price / Book Value ≈ 2.0, reasonable compared to sector norms.
• PEG Ratio: 4.08 → valuation stretched relative to growth.
• Intrinsic Value: Fair value estimated near 330–345 ₹; current price (363 ₹) slightly above comfort zone.

🏭 Business Model & Competitive Advantage:

• Exide Industries is a leading battery manufacturer with strong presence in automotive and industrial segments.
• Brand recognition and wide distribution network provide competitive advantage.
• Low debt ensures financial stability and flexibility for expansion.

📈 Entry Zone & Long-Term Guidance:

• Entry Zone: Attractive accumulation range between 330–345 ₹.
• Long-Term Holding: Suitable for patient investors; fundamentals stable but profit decline and high PEG ratio warrant caution.

Positive

• Debt-to-equity at 0.02 indicates strong financial health.
• Dividend yield of 0.56% adds modest income appeal.
• DII holdings increased by 1.07%, reflecting domestic institutional confidence.

Limitation

• PAT declined by 25.9% quarter-on-quarter, showing earnings weakness.
• ROCE (10.2%) and ROE (7.62%) are moderate compared to industry leaders.
• PEG ratio of 4.08 suggests valuation stretched relative to growth.
• FII holdings declined by -0.59%, showing reduced foreign investor confidence.

Company Negative News

• No major negative news reported; earnings decline remains the key concern.

Company Positive News

• DII holdings increased, showing domestic investor confidence.
• Strong brand presence and leadership in battery segment.

Industry

• Industry PE at 30, close to Exide’s 29.6, indicating fair valuation.
• Sector growth driven by EV adoption, renewable energy storage, and industrial demand.

Conclusion

⚖️ Exide Industries maintains strong fundamentals with negligible debt and fair valuation relative to peers. However, declining profits and stretched PEG ratio highlight near-term risks. Long-term investors may consider accumulation near 330–345 ₹ for margin of safety, while current levels require cautious entry given RSI at 33.3 and weak MACD momentum.