Exide (a part of Rajan Raheja group) is the largest battery company in India having a diversified revenue stream and has a large presence in the automotive batteries and home inverter segment apart from its presence in the telecom, railway batteries segment.
Exide has a strong balance sheet with net cash on the books and average core RoCE of 38% over the last 10 years. Reported RoCE is lower at 18% due to investments in insurance business.
GST implementation could accelerate shift from unorganized to organized segment in which Exide is a major player. This gain in market share could drive faster revenue growth offering operating leverage. Recent traction in medium and heavy commercial vehicle segment in the recent years presents a big replacement market opportunity in subsequent years.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
Found this insight useful?
Please share with your friends and family as well. You can also subscribe to one of our channels listed at the bottom of this page.