Exide Industries

(atulgupta80) #61

E-rickshaws (ER) are proliferating like anything in small towns with populations as low as 30000. I casually checked with one ER owner whether he is using Chinese/ local battery and he was quick to response that all ER use only Exide/ Amaraja. Local batteries are not able to hold charge for long. For me this speaks of potential opportunity. At another place I read now even fork lifts are battery operated. So, for me opportunity is large and uncertainty about future of battery may be an opportunity in disguise.

(Krishnendu) #62

(shampavman) #63

I had been a patient investor in this stock but the movement has been very slow from the past 1.5yrs .
Reading through the AR and their financials , i dont see anything out of order.
If anything they seem to be increasing their reach big time.

Any idea about this stock, anyone?

(1.5cr) #64

Negative sentiment… Amazing company but bad stock. Hold them for 3-4 years, eventually people will notice the earnings growth. Thing is investors are disgusted with exide as they allowed amara raja to take market share and did nothing about it. They then went and infused capital in an insurance business. Alternatively they could have expanded capacity at that point and held off amara raja with ease. To add to that lead prices are going up, yes they can pass this on to their buyers as there is a clause which makes them pretty much immune to lead prices, but who does any research these days huh? Anyway all this is the past now, and this sentiment has to change. We are getting a discounted valuation on these guys, an insurance business that is fully capitalised and some sectorial tailwinds. Only issue is the EV part of it. I think people are scared of that. Will exide invest in the space? Or futher expand capacity in lead acid? Mgmt. has said if demand is there, they will invest in EV batteries. Tech tie ups are being made and they are taking steps. Overall a wait and watch 3-5 year story. I think you can make a nice 18-20% CAGR with low risk and some re-rating. Right now in this market, any stock that doesnt generate 35% CAGR will be sold by every investor.

(mrkaran) #65

Motilal Oswal’s research report on Exide Industries