EXIDEIND - Investment Analysis

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

📊 Investment Analysis: Exide Industries Ltd. (EXIDEIND)

Investment Rating: 3.4

📈 Long-Term Investment Outlook

EXIDEIND is a legacy player in the battery and energy storage segment, with opportunities in EV and industrial applications. But from a pure fundamentals angle, the picture is mixed.

✅ Strengths

Low Debt-to-Equity (0.14): Indicates healthy financial leverage and stability.

Positive PAT Growth: ₹187 Cr. vs ₹157 Cr. reflects incremental earnings improvement.

High Volume vs Avg: ~22.95L shares traded vs 18.83L average — hints at decent market interest.

Near Support Zone: Price hovering close to DMA50 (₹385) and DMA200 (₹394) levels — technically favorable for accumulation.

⚠️ Weaknesses

High P/E of 43.3 vs Industry PE of 31.2: Stock is overvalued on earnings basis.

Low ROE (5.74%) and ROCE (8.65%): Weak capital efficiency for a company of its size.

Negative PEG (-0.99): Indicates poor earnings visibility or inflated valuation.

Dividend Yield (0.51%): Quite low for long-term income-focused portfolios.

52W Index at 28.0%: Trading in lower range of the year's spectrum — potential for further accumulation, but also reflective of investor caution.

🎯 Ideal Entry Price Zone

To improve your margin of safety

₹360–₹380 Zone: A fair accumulation band

Below current price, near technical support levels.

Keeps downside risk lower if fundamentals don’t improve dramatically.

🧭 Strategy for Existing Holders

⏳ Holding Period

Medium term (2–3 years), while tracking business pivot into EV and energy solutions.

📌 Exit Plan

Target Exit Zone: Around ₹500–₹525 range (prior resistance and psychological barrier).

Watch for ROE/ROCE improvement, consistent PAT growth, and PEG turning positive before averaging up.

Use a stop-loss near ₹340, below key support, to minimize downside exposure.

🧠 Final Take

EXIDEIND has the brand and positioning, but the numbers don’t yet back a long-term conviction at this price. For new investors, look for a deeper dip and signs of margin improvement. Existing holders may wait out the transition cycle and reassess fundamentals every quarter.

Would you like a peer comparison — say, with Amara Raja or Tata Power — for context?

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