In this article, we can analyze Exide Industries Ltd as a Potential Multibagger Stock as on 2022 October.
Exide Industries Ltd
Exide has been one of India’s most reliable brands for more than seven decades, enjoying unrivalled reputation and recall. Mr. Bharat Dhirajlal Shah is the current Chairman & Independant Director. Mr. Subir Chakraborty is the Managing director & CEO
The company is the leading storage batteries manufacturer in India with leader in almost all categories in Automotive, Industrial, and submarine sectors.
Storage Batteries Segment (74% of revenues)
Exide organizations achieve and sustain outstanding levels of performance that meet or exceed the expectations of all stakeholders. In company’s journey towards excellence and to secure a sustainable future.
Website
https://www.exideindustries.com
Location
Exide Industries Ltd. is a Kolkata-based company. It has manufacturing facilities in Sri Lanka and India as well as a dealership network in 46 nations across 5 continents.
Leaders
Mr. Bharat Dhirajlal Shah as Chairman & Independent Director. Mr. Shah is also on the board of 15 other companies.
Mr. Subir Chakraborty serves as Managing director & CEO. Chakraborty joined Exide in 1996 and has been on the board for the last 8 years. He has held senior positions in the company including heading and supervising critical functions like automotive, industrial, and submarine.
Mr. R B Raheja is the Vice Chairman & Non- Executive director of Exide Industries Ltd. he is on the board of Exide Industries Ltd. and 53 other companies.
Highlights
Strong brand equality and distribution network,over 90% market share in India,Global presence in 50 + countries, Huge range of products for 8+ sectors, 38+ major automobile manufactures as its customers,Consistent profit margins for last 10+ years
Subsidiaries
Exide industries Ltd have the following subsidiaries:
- CHLORIDE METALS LTD. (“CML”)
- CHLORIDE POWER SYSTEMS & SOLUTIONS LTD. (“CPSSL”)
- CHLORIDE INTERNATIONAL LTD. (“CIL”)
- CHLORIDE BATTERIES S.E. ASIA PTE LTD. (“CBSEA”)
- ESPEX BATTERIES LTD. (“ESPEX”)
- ASSOCIATED BATTERY MANUFACTURERS (CEYLON) LTD. (“ABML”)
- EXIDE LECLANCHE ENERGY PRIVATE LTD. (“ELEPL”)
- EXIDE ENERGY SOLUTIONS LIMITED (“EESL”)
Awards
Exide Industries Limited won the ‘Cyber Security Excellence Award 2022’, organized by ZScaler & Quantic at an event held in Mumbai on 7th October 2022.,Exide Industries was recognized by ‘Manufacturing Today’ with Excellence in CSR Awards 2022, at an event on 22nd September in Mumbai,Mr. Anshuman Shrivastava, Chief-Commercial for Exide, has been awarded the ‘CPO of the Year 2022’ at the “4th Edition Procurement Excellence Summit & Awards 2022” organized by UBS Forums Pvt.Ltd on 4th August in New Delhi,Exide Industries Limited was awarded the ‘Golden Peacock Excellence Award 2022’ at the Institute of Directors India’s 31st World Congress on Leadership for Business Excellence & Innovation and Golden Peacock Awards ceremony, held on 22nd July in Chennai,Exide Industries Ltd. honoured as one of ‘The Economic Times Sustainable Organisations’ 2022 on 29th June 2022,Exide Industries Ltd. honoured with ‘Tech Senate Award 2022’ by Express Computer, the technology division of the Indian Express Group on 25th June 2022,Exide Industries Ltd. Wins the ‘Best Technology of the Year – Infrastructure’ award in the Manufacturing category, organized by IBM & Quantic on 8th June 2022.
Products & Services
- Inverter Batteries
- Automotive Batteries
- Home UPS systems/Inverters
- Integrated power backup systems
- Institutional UPS Batteries
- Solar Solutions
- Industrial Batteries
- Genset Batteries
- Submarine Batteries
- E-rickshaw Batteries
- SF Batteries
Profit & Loss
Expansions
- Exide integra– Exide integra have been developed with upgraded technologies and have higher efficiency.
- Exide Mileage ISS batteries have been developed with Improved fuel efficiency with lower emissions,Higher charge acceptance with increased stability,Improved life-cycle and greater shelf-life,Suited for high temperature applications,Spill-resistant characteristics
- company pan-India presence and innovative product portfolio have enabled us to secure exclusive battery supply contracts with the OEMs
- SF Pro Tubular Range have been developed with upgraded technologies and have higher efficiency.
- Opportunity Rapid Charge (ORC) is one such product where the battery can be charged faster and several times during a work cycle.
- Tubular Gel VRLA Batteries
- Flooded Tubular (Solatubular/Solar Blitz)
- Solar Power Generating Systems – new foray into solar roof panels could be a huge-growth strategy due to establishd exide network & brand recognitions.
Positives
- Company is Reputed Brand with Zero Debt
- Company have Stable Revenue & Profit
- Company is into Expansions
- New Electric Battery Products & New Solar Panel segment good ride the Growth strategy ahead
- Company is trading at Low Valuations
Negatives
- Past 2 years shows Other Income Jump in Net Profits
- Cash Flow is negative
Warren Buffett Checklist
| Factor | Value |
| Economic moat | Good |
| Growth | Moderate |
| Valuation | Good |
| Debt | Good |
| Integrity | Good |
Summary
As per the Expansion & Value Investing grounds the company is having Multibagger Properties.
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