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.

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