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KEY DATA
Rating BUY Sector relative Outperformer Price (INR) 193 12 month price target (INR) 220 Market cap (INR bn/USD bn) 164/2.2 Free float/Foreign ownership (%) 54.0/9.1
What’s Changed Target Price
Rating/Risk Rating ⚊
INVESTMENT METRICS
Demand energising, margins charging up
We hosted top management of Exide Industries (Exide) for investor meetings. Takeaways: i) Sales growth has picked up across the board from Q3FY21, and Exide has closed gap with competition; it is targeting a 200bps lead over market. ii) While lead prices are headed up in the near term, Exide is targeting 150bps in EBITDA margin expansion to 15% over the next 1.5 years led by cost levers. iii) Presence in lithium
ion is fortified with 1.5GWh capacity on stream and an order bagged.
In light of Exide’s improving OEM sales, margin focus, progress on lithium-ion JV (investment of INR1.9bn), and no further investments in the insurance arm, we are raising the valuation to 21x and rolling it over to June-22E, yielding revised TP of INR220. Retain ‘BUY’.
FINANCIALS (INR mn)
Year to March FY20A FY21E FY22E FY23E
Revenue 98,567 89,137 1,01,737 1,09,297
EBITDA 13,650 11,517 13,535 14,363
Adjusted profit 8,400 6,149 7,613 7,913
Diluted EPS (INR) 9.9 7.2 9.0 9.3
EPS growth (%) 10.3 (26.8) 23.8 3.9
RoAE (%) 13.4 9.4 10.9 10.5
P/E (x) 19.4 26.5 21.4 20.6
EV/EBITDA (x) 11.8 13.3 11.6 10.8
Dividend yield (%) 2.1 0.8 1.3 1.3
PRICE PERFORMANCE
Recovery in sales charging up well
Exides’s sales grew slower than competition over the last three quarters owing to
late operationalisation of its plants. They will fully recover in H2FY21 led by full
operationalisation of all plants and an all-round pickup. Besides, the spate of
initiatives such as market mapping, digitalisation, and transformation of the sales
structure should, according to management, help it outgrow the market by 200bps.
Putting energy in margin improvement and capital allocation
With its EBITDA margin lagging competition by 300bps, Exide targets to bridge the
gap by at least 150bps without compromising capital allocation. A transforming
supply chain, power cost reduction through solar, higher automation at factories and
warranty management would help Exide improve EBITDA margin to 15%+ in 1.5–2
years, up from 13–14% in the last four years. Capex in FY21 will be merely INR3bn.
Progressing well on lithium ion with 1.5 GWh capacity
With in-built flexibility on all types of lines at its lithium ion plant, the prismatic line
has been commissioned and the first bulk order (INR180mn) has been received from
an electric 3W OE. The cylindrical line will be ready soon and prototypes for electric
2W have begun. Management expects INR10bn in sales on ramp-up over four years.
Explore:
Outlook and valuation: Firmer trajectory; retain ‘BUY’
The company’s present endeavours are likely to bear fruit over the next two–three
years, setting the stage for Exide to outperform market growth. We estimate a
revenue CAGR of 11% from FY21–23E. Efforts on margin improvement should result
in higher EBITDA margin, thereby leading to cash accretion, with limited spends on
capex (FY21 to be INR3bn). Replacement volumes in FY22 are likely to be in line with
the peak of FY20, while investments in the Li-ion JV should begin to yield dividends.
All in all, we are raising FY22E EPS by 5% and estimate an EPS CAGR of 12% from
FY21–23E. Maintain ‘BUY’ with a revised SoTP-based TP of INR220 (earlier: INR202),
valuing the standalone business at 21x Jun 22 EPS (10% discount versus 15% earlier
to AMRJ’S target multiple) and the life insurance business at 1x embedded value.
-30
35
100
165
230
295
Sales Growth(%)
EPS Growth(%)
RoE(%)
PE(x)
Automobiles EXID IN Equity
25,000
29,400
33,800
38,200
42,600
47,000
125
145
165
185
205
225
Dec-19 Mar-20 Jun-20 Sep-20
EXID IN Equity Sensex
India Equity Research Automobiles December 18, 2020
EXIDE INDUSTRIES COMPANY UPDATE
Shradha Sheth Meera Midha +91 (22) 6623 3308 +91 (22) 4088 5804 [email protected] [email protected]
Corporate access
Financial model Podcast
Video
EXIDE INDUSTRIES
Edelweiss Securities Limited
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Financial Statements
Income Statement (INR mn) Year to March FY20A FY21E FY22E FY23E
Total operating income 98,567 89,137 1,01,737 1,09,297
Gross profit 30,547 26,476 29,537 31,406
Employee costs 6,664 6,397 6,813 7,256
Other expenses 10,233 8,561 9,189 9,787
EBITDA 13,650 11,517 13,535 14,363
Depreciation 3,626 3,715 3,933 4,309
Less: Interest expense 94 140 100 90
Add: Other income 639 559 675 615
Profit before tax 10,352 8,221 10,178 10,579
Prov for tax 2,097 2,072 2,565 2,666
Less: Other adjustment 0 0 0 0
Reported profit 8,256 6,149 7,613 7,913
Less: Excp.item (net) (144) 0 0 0
Adjusted profit 8,400 6,149 7,613 7,913
Diluted shares o/s 850 850 850 850
Adjusted diluted EPS 10 7 9 9
DPS (INR) 4.1 1.5 2.5 2.5
Tax rate (%) 20.3 25.2 25.2 25.2
Important Ratios (%) Year to March FY20A FY21E FY22E FY23E
Automotive (% of rev.) 71.7 71.0 71.4 70.8
Industrials (% of rev.) 27.3 28.0 27.6 28.2
Gross margin (%) 31.0 29.7 29.0 28.7
EBITDA margin (%) 13.8 12.9 13.3 13.1
Net profit margin (%) 8.5 6.9 7.5 7.2
Revenue growth (% YoY) (6.9) (9.6) 14.1 7.4
EBITDA growth (% YoY) (3.3) (15.6) 17.5 6.1
Adj. profit growth (%) 10.3 (26.8) 23.8 3.9
Assumptions (%) Year to March FY20A FY21E FY22E FY23E
GDP (YoY %) 5.0 (6.5) 7.5 6.0
Repo rate (%) 4.4 4.0 3.8 4.0
USD/INR (average) 70.9 75.0 73.0 72.0
4W OEM (mn units) 11.8 10.6 2.2 2.5
4W Aftermkt (mn units) 27.3 28.0 10.1 9.8
2W OEM (mn units) 12.2 12.4 9.3 10.6
2W Aftermkt (mn units) 9.7 10.2 9.4 10.0
Home Inverter (% YoY) (7.0) (17.0) 15.0 16.0
UPS (% YoY) 5.0 (8.0) 14.0 10.0
Valuation Metrics Year to March FY20A FY21E FY22E FY23E
Diluted P/E (x) 19.4 26.5 21.4 20.6
Price/BV (x) 2.6 2.4 2.2 2.1
EV/EBITDA (x) 11.8 13.3 11.6 10.8
Dividend yield (%) 2.1 0.8 1.3 1.3
Source: Company and Edelweiss estimates
Balance Sheet (INR mn) Year to March FY20A FY21E FY22E FY23E
Share capital 850 850 850 850
Reserves 62,111 66,731 71,794 77,156
Shareholders funds 62,961 67,581 72,644 78,006
Minority interest 0 0 0 0
Borrowings 280 280 280 280
Trade payables 10,303 9,280 11,149 11,978
Other liabs & prov 8,152 5,443 5,613 5,613
Total liabilities 82,420 83,307 90,409 96,600
Net block 23,372 23,157 25,724 28,915
Intangible assets 365 365 365 365
Capital WIP 2,969 2,969 2,969 2,969
Total fixed assets 26,705 26,490 29,057 32,249
Non current inv 20,521 20,521 20,521 20,521
Cash/cash equivalent 1,733 9,452 5,556 8,101
Sundry debtors 8,153 7,082 9,756 10,181
Loans & advances 322 291 332 357
Other assets 24,986 19,471 25,188 25,193
Total assets 82,420 83,307 90,409 96,600
Free Cash Flow (INR mn) Year to March FY20A FY21E FY22E FY23E
Reported profit 8,256 6,149 7,613 7,913
Add: Depreciation 3,626 3,715 3,933 4,309
Interest (net of tax) 63 94 67 60
Others (653) (94) (67) (60)
Less: Changes in WC (2,155) 2,884 (6,392) 373
Operating cash flow 9,136 12,749 5,154 12,595
Less: Capex 4,660 3,500 6,500 7,500
Free cash flow 4,477 9,249 (1,346) 5,095
Key Ratios Year to March FY20A FY21E FY22E FY23E
RoE (%) 13.4 9.4 10.9 10.5
RoCE (%) 17.3 12.8 14.6 14.1
Inventory days 107 112 98 103
Receivable days 35 31 30 33
Payable days 58 57 52 54
Working cap (% sales) 16.3 14.7 19.2 17.5
Gross debt/equity (x) 0.4 0.4 0.4 0.4
Net debt/equity (x) (2.3) (13.6) (7.3) (10.0)
Interest coverage (x) 106.6 55.7 96.0 111.7
Valuation Drivers Year to March FY20A FY21E FY22E FY23E
EPS growth (%) 10.3 (26.8) 23.8 3.9
RoE (%) 13.4 9.4 10.9 10.5
EBITDA growth (%) (3.3) (15.6) 17.5 6.1
Payout ratio (%) 42.2 20.7 27.9 26.9
Edelweiss Securities Limited
EXIDE INDUSTRIES
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Key takeaways
Sales transformation: Digital mapping/structure transformation
Exide Industries boasts market leadership in batteries across segments in
automotive (except exports) and industrial (except telecom), logging a 10.8% CAGR
over the last five years.
While the company logged strong sales growth over FY17–19 beating competition,
sales growth has lagged peers over the last six quarters. Sales were also hit over the
last three quarters led by the late operationalisation of its plants in Maharashtra.
Sales will fully scale up in Q3 and Q4FY21 led by full operationalisation of all plants
and an all-round pickup.
Furthermore, management expects sales to grow 200bps ahead of market led by the
following initiatives.
With market mapping, digitalisation of sales and structure transformation, the
company has been able to improve sales growth.
The market mapping exercise undertaken over the last one year helped it identify
5,000 consumption centres spanning 23 regions, versus 13 earlier. More than
100,000 retail partners were thus mapped.
Digitalisation efforts: The company took a massive digitalisation initiative,
thereby putting more than 4,000 channel partners (dealers) and 500 sales
personnel on cloud. The company also digitalised its service efforts, leading to
reduced lead times to dealers from three–four days to barely about four hours
and now offers a doorstep service to customers, which can be booked
digitally/online. These efforts have reinforced dealer confidence in the network
and should yield results over the next 9–12 months.
Sales picking up: Sales have lagged led by the covid-19 hit over the past three
quarters and late operationalisation of its three plants in Maharashtra. That said,
sales would fully scale up in Q3 and Q4FY21 led by full operationalisation of all
plants and an all-round pickup.
Telecom: Exide ceded market share in the telecom segment, intentionally
reducing sales in the wake of weak pricing and higher competition. However, the
company regained its market share to 30% over the last quarter with segmental
sales having doubled.
Furthermore, with a key customer, BSNL, having paid outstanding dues in last 12
months, and now going into fresh tendering, management believes the overall
telecom market for batteries will start growing.
Recovery is expected to drive FY22 replacement revenues to the FY20 levels.
Focus on export market: Exports currently make up less than 10%. So, the
company is targeting to double exports over the next three years led by growth
in both the automotive and industrials divisions.
Exide has been lagging competition in the automotive market in exports.
Consequently, management is focusing on South East Asian and Middle Eastern
markets and plans to localise sales force across the two geographies. An office
has already been set up in the UAE, with plans underway for an office in Malaysia
to aid on-ground support. The company has also made inroads into the difficult
US markets, having bagged a one-year contract.
EXIDE INDUSTRIES
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Exide remains the market leader in industrial exports, with exports forming 13%
of industrial sales. Management aims to grow this to more than 15% in FY22,
with expansion in two key segments – traction batteries and medium VRLA
batteries. The company has seen strong demand from export markets,
particularly Europe for its traction batteries (used in forklifts and material
handling equipment), with e-commerce finding favour post-lockdowns.
Muted growth in auto OEM sales for the last two years, and it would hit the
replacement market from FY23. However, based on all the above initiatives,
Exide targets 200bps higher sales growth than the market.
Within the replacement market, the company expects to gain share from the
small-scale sector. Of the replacement battery market, small-scale batteries form
35-40%, which mainly includes players within 3W, CV and tractor operators.
Given low credit and tightened supply chains during and post-lockdowns,
unorganised players have undergone significant stress. This could become an
area of high-growth for the company aiding in market share expansion as well.
Cost leadership and margin levers
Exide lags the competition on margins by 300bps. Hence, the company has identified
margin levers and plans to reduce costs by 150bps over the next 12–18 months, and
achieve margins of 15–16% over FY22–FY23E (13–14% in FY20–21). This will be
driven by:
Supply chain and logistics management: Supply chain costs are ~3% of top line.
The company is looking at transforming its supply chain with digitalisation and
overhead optimisation. It aims to rationalise 156 depots (to 90 depots in phase
I) and to 50 depots in phase 2 over the next one year.
Power costs: Power and fuel costs formed 3.3% of turnover, 4.2% of costs in
FY20. Exide has commissioned a solar power plant each in south and west India,
with a third plant underway in north India. The company is looking at power
reduction through solar with 66MW capacity.
Packaging costs: The company has identified savings by procuring plastic
packaging materials, which should drive cost down.
Manpower costs: The efforts on manpower rationalisation and automation are
underway, especially with the installation of punch grid technology machines
with continuous lines instead of patch power processing, which has improved
efficiency by 50%. However, given the operating model, Exide is likely to have a
higher manpower cost vis-à-vis its peer set.
Warranties: Due to its presence in higher warranty products such as 3W and
home UPS, Exide’s warranty costs are 0.7% higher than peers; however,
management has undertaken efforts to mitigate leakages in the system and also
scaling up lower-end brand Dynex in tier-2 and -3 cities, which offers lower
warranty.
Raw material price increase and volatility: While lead prices have been inching
up, as per management, they raised prices by 1.5% in September. Furthermore,
Exide has a mix of raw materials with pure lead constituting 40% of raw material
costs (sourced from Hindustan Zinc) and recycled lead constituting the balance,
which is 5–6% cheaper than pure lead and not linked to LME. Thereby, they are
increasing consumption of recycled lead.
Edelweiss Securities Limited
EXIDE INDUSTRIES
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Lead prices on an upward trajectory
Source: Bloomberg, Edelweiss Research
Technology tie-ups
The company’s growth has largely been focused on technological collaborations. The
following collaborations are underway or planned over the medium to long-term:
1. Hitachi Chemicals Co., Japan: Exide formed a partnership with Hitachi, Japan in
1990s for a range of advanced high-power automotive batteries as well as VRLA
industrial range of products.
2. Furukawa Battery Company, Japan: Exide has a technical assistance and
collaboration agreement with Furukawa for various automotive applications
spanning both 2Ws and 4Ws. The entire range is being upgraded to comply with
BSVI emission norms. The company is also developing Ultra batteries in
collaboration with Furukawa.
3. EastPenn Manufacturing, USA: The company collaborated with EastPenn for
automotive and industrial batteries. Exide has recently developed the industrial
ultra battery for energy storage application, which is ready for commercial
deployment. The company is also developing Ultra batteries in collaboration
with EastPenn.
4. Moura Batteries, Brazil: With stricter energy norms and more stringent
measures likely to be enforced, there is likely to be higher demand for more
sophisticated car batteries. In anticipation of the same, Exide collaborated with
Moura, to develop advanced automotive batteries required for BSVI compliant
vehicles.
5. Leclanché, Switzerland: Exide entered into a JV with an 80% share for lithium
ion (Li ion) batteries. The JV is has a production scale of 1.5GWh with six
production lines ordered for the battery pack assembly for cylindrical, prismatic
and pouch cells.
6. E-Coult, Australia: Exide collaborated with E-Coult for Battery Management
Systems (BMS) and energy storage solutions based on the ultra-battery
technology. These are heavier batteries, which are voluminous, and can replace
stationary batteries wherever possible.
7. Advanced Battery Concepts, USA: Exide is the fourth company globally that, in
collaboration with ABC, has licensed bi-polar batteries, which should change the
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EXIDE INDUSTRIES
Edelweiss Securities Limited
6 Edelweiss Research is also available on www.edelweissresearch.com, Bloomberg - EDEL, Thomson Reuters, and Factset
archaic perception around lead acid batteries. These batteries could also reduce
lead requirement by about 40%, resulting in lower costs.
Summary of Exide's technological collaborations
Source: Company, Edelweiss Research
Lithium ion JV: Progressing well
Taking a lead in India’s nascent lithium-ion battery market, Exide formed a JV with
Leclanche of Switzerland, which is now progressing well. Capacity of 1.5GWh with
six production lines has come on stream for battery pack assembly. Exide’s
investment in the JV has gone up from INR410mn in FY19 to INR1.9bn in FY20, for
an 80% stake. Going forward, the company plans to spend INR0.8–1bn annually in
the JV.
The company is concentrating on value-addition on module making and Battery
Management Systems (BMS)—and not cell manufacturing at present—as it gives
them the flexibility to take on the market the way it develops.
The company has concentrated on engineering expertise and hired 32 Engineers
from Bosch for contract-based designing.
Exide collaborated with E-Coult for Battery Management Systems (BMS) and
energy storage solutions based on the ultra-battery technology.
The capacity is used for both automotive and industrial applications such as
Telecom, UPS, and energy storage.
Exide has built in maximum flexibility at its lithium ion factory, having capacities
for all types of modules: cylindrical, prismatic, and pouch form.
Prismatic capacity has been fully commissioned and validated this month. The
first bulk order has been received for 3,000 battery packs for an electric 3W from
a large OEM player for INR180mn. This line will be also used for making e-bus
and telecom modules.
Edelweiss Securities Limited
EXIDE INDUSTRIES
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Prismatic line status
Source: Company, Edelweiss Research
Cylindrical line installation will be completed by 30th December. This line will be
used for making battery modules for electric 2Ws. Prototypes are under testing
with 2W OEMs.
Cylindrical line status
Source: Company, Edelweiss Research
The Pouch module line has been developed by Leclanche, its Swiss partner. This
line is used for making battery modules for bus/car applications. Homologation
for bus orders for 10,000km battery packs is undertaken.
EXIDE INDUSTRIES
Edelweiss Securities Limited
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Pouch module line status
Source: Company, Edelweiss Research
The JV has set up an R&D centre in Bengaluru where several product
development programmes are underway. Many pilot orders have been collected
from multiple automotive OEMs, as well as large telecom operators, UPS
manufacturers and solar PV companies.
Furthermore, the modules produced by the lines are assembled into low voltage
or high voltage packs.
Low Voltage Pack Line: This has been commissioned and ready for production.
The line will be used for making modules into packs for all low-voltage
applications such as 2W, 3W, Telecom and UPS.
High Voltage Pack Line: This line has been commissioned and is ready for
production. HV line to be used for making high-voltage packs for bus/car and
other high voltage applications.
According to management, the company can generate INR10bn on full-scale
utilisation in sales in this lithium ion capacity. They are expecting 60–70% utilization
in three years.
Exide management reckons cell manufacturing makes economic sense at 5GW,
wherein the investment is USD800mn.
EV penetration
Management believes penetration of EVs will be slower in PVs and faster in 2W,
buses and 3W. Management believes two broad concerns plague EVs at present:
high initial cost and lack of charging infrastructure.
2W and 3W electrification: Management expects 10% of 2W universe to be EV
by 2025 and 25% of universe to be EV by 2030. While costs are broadly 2x of a
traditional engine vehicle at present in 2W (INR1.25lac versus INR55,000 for a
comparable ICE engine battery requirement), with improvement in scale and
efforts on cost reduction, initial cost to customer is likely to reduce over the
medium to long-term. Furthermore, the lower cost of maintenance and power
costs vis-à-vis fuel costs make a compelling argument for intra-city transfer in
Edelweiss Securities Limited
EXIDE INDUSTRIES
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small vehicles. Within 2W, 3W Exide is looking at designing the cells and
providing after sales and warranty as well.
For buses and cars, intra-city travel is likely to be a major driver for PVs with
charging infrastructure available at depots and homes for consumers. However,
PVs are likely to see lower adoption owing to distance anxiety among customers
without necessary infrastructure in place.
4W: Within 4Ws, Exide is planning to tie up with smaller OEMs for assembly of
cells for their EV requirements. Owing to the current geopolitical scenario, OEMs
are looking at diversifying away from Chinese suppliers. Large 4W OEMs are likely
to pursue their own designing and manufacturing. Given the present geo-
political climate, management sees lower dependence on China for battery pack
imports than planned earlier by OEMs and may undertake contract
manufacturing for smaller OEMs, without taking additional warranty risk.
Consequently, management estimates 2W and 3W EV usage to be at 10–25% of the
market by 2030, while the shift in buses will be contingent on government subsidies.
Four wheeler passenger vehicles will see slower shift depending on charging
infrastructure in the country.
Furthermore, battery life in 2W and 3W EVs and e-rickshaws is likely to be two–three
years, presenting a strong replacement market, while PVs are likely to have a longer
battery life. With technology ready for 2W, 3W, buses, Telecom and UPS, Exide plans
to increase its presence in these categories.
Capex and capital allocation
Capital allocation: With INR10bn of post-tax cash generated each year, the company
has decided on an average 30% dividend payout every year. Further, the company
had liquid cash of INR12.8bn as on Q2FY21.
Capex: In FY21, Exide will look at just the spillover capex of INR2.5–3bn. Going
forward, the company will look at restarting capex and 15–20% capacity expansion,
it will be mainly brownfield capex. The company annually guided for INR0.8-1bn of
capex for lithium ion capacities.
Life Insurance business
The company had made investments of INR16.8bn as of FY20 (last incremental
investment of INR1bn in October-18) in the Exide Life insurance business, and no
further capital infusion is likely in the business.
While growth remains a paramount concern, the company has expanded at a 13%
CAGR in sales over the last four years. Furthermore, the solvency ratios are
comfortable at 210%. The business currently has an embedded value of ~INR25.4bn
with a notable presence in South, and some expansion underway in North, East and
Western markets. While Exide Life lacks a large banking partner for distribution, it
has several co-op banks as distribution partners. The renewal business continues to
grow post-lockdown.
EXIDE INDUSTRIES
Edelweiss Securities Limited
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We assign a revised TP of INR220 based on SoTP
Particulars Valuation
methodology
Value/Share
(INR) Remarks
Standalone
operations
Earning
multiple 190 Core standalone business valued at 21x
Jun 22E earnings
Exide Life Insurance
Embedded
value
multiple
30 Assigning 1x embedded value as on 31st
March, 2020
Target Price 220
Source: Company, Edelweiss Research
We have increased our FY22E EPS by 5%
Old New % Change
FY21E FY22E FY21E FY22E FY21E FY22E
Revenue 88,023 1,00,580 89,137 1,01,737 1.3 1.2
EBITDA 11,379 13,208 11,517 13,535 1.2 2.5
PAT 5,996 7,266 6,149 7,613 2.6 4.8
Source: Edelweiss Research
Edelweiss Securities Limited
EXIDE INDUSTRIES
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Company Description
Exide is a leading battery producer in India and one of the largest power storage
producers in South Asia. It supplies batteries to the automotive, industrial,
infrastructure development, information technology and defence sectors in India. It
has six battery manufacturing facilities located across India. In addition, through its
subsidiaries, the company has two lead smeltering facilities that supply a significant
amount of the company's lead requirement. The company is servicing 8 mn
customers via all different types of batteries. Current capacity in 4W, 2W and
industrial batteries is at 12.2mn units, 22mn units and 2.5mn amph, respectively.
The company recently increased its stake in ING Vysya Life Insurance Company (IVL)
to 100%. IVL began its operations in 2001 and currently services more than 1mn
customers. Further Exide ventured in lithium ion pack assembly and battery
management systems with 1.5 GW capacity which was commissioned in Dec 20.
Investment Theme
Company is well poised to cater to the replacement demand within automotives and
inverters and telecom segment within industrial batteries. Also company is
undertaking technology upgradation and cost cutting initiatives. Given the
replacement nature of business, battery volumes may surge in the near term. We
expect replacement volumes to touch FY20 peak in FY22.
Our thesis is reinforced by improving OEM sales where Exide is a market leader with
60% plus market share, strong margin focus, with increase by 150bps, taking lead in
the lithium ion JV for pack assembly and Battery Management System (BMS) with
investments of INR1.9bn, and no further investments planned in the insurance arm.
Key Risks
Downside risks
If economic slowdown prolongs, not only would it affect OEM demand but also
prolong the replacement cycle, thus affecting the replacement demand. Any
increase in competitive activity, which triggers price war, will negatively impact
margin.
Upside risks
Lead prices bounced back by 10% QoQ while USD-INR continues to remain volatile.
However Exide has pricing power and usually effects price increases with a lag.
EXIDE INDUSTRIES
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Additional Data Management
Chairman Bharat D. Shah
Vice-Chairman R.B. Raheja
CEO G. Chatterjee
CFO A.K. Mukherjee
Auditor B S R & Co
Holdings – Top 10* % Holding % Holding
ICICI Prudential MF 4.57 ABSL AMC 1.94
Hathway Investment 4.32 Govt Pension Fund 1.91
Life Insurance Corp 3.09 HDFC Life 1.73
HDFC AMC 2.56 DSP Investments 1.50
New India Assurance 1.97 ICICI Prudential Life 1.28
*Latest public data
Recent Company Research Date Title Price Reco
10-Nov-20 Robust rebound in demand ; Result Update
202 Buy
04-Aug-20 Covid-19 derails auto OEMs; Result Update
184 Buy
06-Jun-20 Auto OEMs sore; COVID-19 exacerbates pain; Result Update
205 Buy
Recent Sector Research Date Name of Co./Sector Title
16-Dec-20 Automobiles Commodities spike: Will history repeat? ; Sector Update
02-Dec-20 Tata Motors Brexit and beyond…; Company Update
26-Nov-20 Bajaj Auto Festive sales undershoot expectations ; Company Update
Rating Interpretation
Source: Bloomberg, Edelweiss research
Daily Volume
Source: Bloomberg
Rating Distribution: Edelweiss Research Coverage
Buy Hold Reduce Total
Rating Distribution* 162 63 14 239
>50bn >10bn and <50bn <10bn Total
Market Cap (INR) 184 59 4 247
* stocks under review
Rating Rationale
Rating Expected absolute returns over 12 months
Buy: >15%
Hold: >15% and <-5%
Reduce: <-5%
TP284
TP292
TP260
125
160
195
230
265
300
Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20
(IN
R)
EXID IN Equity Buy Hold Reduce0
4
8
12
16
20
Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20
(Mn
)
Edelweiss Securities Limited
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