Exide Industries Ltd. Worst is Over

Exide Industries Limited is a leader storage battery producing company and a life insurance company headquartered in Kolkata, India. Its segment includes automotive and industrial lead-acid batteries. 

1916 CESCO(Chloride Electrical Storage Company) , UK start up importng activities in India.

1946 Set up First factory – Shyamnagar, West Bengal

1984 Technical collaboration with Shin Kobe Japan Chloride Industries renamed as Exide Industries Ltd.

➤ 1995 Chloride Industries renamed as Exide Industries Ltd.

➤ 2005 50% Acquisition in ING Vysya Life Insurance

➤ 2012 entered to manufacture of Sine Wave Invertors for Home & Industrial         Usage

➤ 2014 Acquisition of balance 50% shares in ING. ING Vysya Life Ins. renamed as             Exide life Ins

With nine factories spread nationally, Exide's range and scale of manufacturing operations can be compared by very few companies globally.
⧭ 2 in West Bengal,      ⧭ 2 in Uttarakhand,   ⧭ 1 in Hariyana,    
⧭1 in Tamilnadu,           ⧭3 in Maharashtra) 

seven factories are dedicated to producing  batteries & the other two for Home UPS Systems. Together, the manufacturing plants produce yearly output of 8 Million Units in Automobile batteries (including batteries for motor-cycle applications), and over 600 Million Ampere-Hours of Industrial Power.

Exide's manufacturing facilities are equipped with world's latest and most advanced machineries with continuous up gradation. Along with constantly upgrading its technology and also acquiring new technology to meet the ever increasing demands of its customers. In addition to the state-of-the-art in-house R&D center recognized by the Department of Scientific and Industrial Research, Government of India, Exide also acquires new technology through technical collaboration agreements with leading international battery manufacturers.

Main Product Categories are as below :

➽AUTOMOTIVE BATTERIES    ➽  INDUSTRIAL BATTERIES       ➽INVERTER BATTERIES 

➽HOME UPS SYSTEMS            ➽SOLAR BATTERIES                   ➽ GENSET BATTERIES ➽SUBMARINE BATTERIES

PRODUCT PORTFOLIOS

Some of the major Features & development work done at the R&D viewed at a glance is as follows:

1. Reach 50+ countries
2. Production Capacity 45.45 million units of automotive & MC battery 4,782 million Ah of industrial power
3. Distribution network 48,000+ direct and indirect dealers
4. Passionate Human Resources 5,300+ employees
5. Automotive & tractor batteries as per Indian standards to suit tropical conditions
6. Japanese range of automotive and motorbike batteries
7. German range of automotive batteries suited to vehicles of European origin
8. Development of submarine batteries
9. Valve Regulated Lead Acid (VRLA) batteries for telecommunication & railway applications
10. Motive Power Batteries for fork-lift trucks & golf carts
11. Development of special type of poly-ethylene separators for varying applications
12. High energy density battery for electric vehicles
13. Plant batteries for power stations
14. Furthermore, long-life, maintenance-free batteries for cars have also been developed which are presently being marketed under the brand name Exide Eternity
15. Also a new heavy duty, MHD range of batteries have been developed and introduced for the entire commercial range of vehicles. Batteries were also developed for CNG/LPG powered three-wheelers and golf carts
16.  A range of batteries for industrial application including new batteries for telecom, solar, traction and  small VRLA for UPS system was also developed
17. Collaborations with Shin Kobe and Furukuwa of Japan, Oldham of UK and East Penn Manufacturing of US give Exide a global dimension in manufacturing capability.
18. Exide Industries Ltd and Leclanché SA (SIX:LECN), one of the world's leading energy storage solution companies, headquartered in Switzerland, announced recently a joint venture to build  lithium-ion batteries and provide energy storage systems for India's Electric Vehicle market and grid-based applications.  The JV is likely to become a leading solutions provider for alternative energy storage applications in India; and will also contribute to developing energy-efficient, eco-friendly solutions that rationalise fossil fuel dependence. The JV will specifically target e-transport and fleet vehicles, including e-buses, e-wheelers and e-rickshaws. Its production plant will be based in Gujarat. A module and battery pack assembly line is expected to be operational by Q3 FY 2019-20.

EXIDES SUBSIDIARIES ARE :

1 > EXIDE LIFE INSURANCE COMPANY LTD.                                                2> CHLORIDE METALS LTD. ("CML")

3> CHLORIDE POWER SYSTEMS & SOLUTIONS LTD. ("CPSSL")                4> CHLORIDE INTERNATIONAL LTD. ("CIL")

5> CHLORIDE BATTERIES S.E. ASIA PTE LTD. ("CBSEA")                            6> ESPEX BATTERIES LTD. ("ESPEX")

7> ASSOCIATED BATTERY MANUFACTURERS (CEYLON) LTD.                8>EXIDE LECLANCHE ENERGY PRIVATE LTD. 

Its International Reputed Brands are:

EXIDE BRAND BATTERIES ARE AVAILABLE IN -

AFGHANISTHAN, BANGLADESH, MALAYSIA, MAURITIUS, MYANMAR, SINGAPORE, SRI LANKA

CHLORIDE BRAND BATTERIES ARE AVAILABLE IN -

BAHRAIN, BRUNEI, BANGLADESH, KUWAIT, MALAYSIA, MYANMAR, NIGERIA, PHILIPPINES, SINGAPORE, SRI LANKA, THAILAND, UAE, VIETNAM

                                                               

CEIL BRAND BATTERIES ARE AVAILABLE IN -

AFRICA, AUSTRALIA, BOTSWANA, HONG KONG, INDONESIA, KENYA, MYANMAR, NEW ZEALAND, NIGERIA, PHILIPPINES, SINGAPORE, SOUTH , TANZANIA, UAE, YEMEN, ZIMBABWE

INDEX BRAND BATTERIES ARE AVAILABLE IN -

SOUTH AFRICA, UGANDA, YEMEN

SF SONIC BRAND BATTERIES ARE AVAILABLE IN -

SOUTH AFRICA

MAJOR MNC & DOMESTIC CUSTOMERS

As Exide uses lead in the manufacture of its products , so  environmental control is an area of high priority. The thrust of the Research & Development Center in Kolkata, continues to be development and production of batteries which are more environment-friendly. Each Exide plant has been set up with intricate and intensive pollution control equipment to ensure that effluent prejudicial to the environment is not discharged by the concerned units. Further, the Company has also contributed towards conservation and protection of wildlife.
             
            CMP : Rs.184.6    Market Cap:Rs.15678 Cr.     EPS-Rs.  9.95      Face Value- Rs 1                       

MAR’18     YEARLY
Net Sales (Cr)		Operating Profit (Cr)				(Profit After Tax)PAT (Cr)
Mar’19  : 10588		Mar’19  : 1413				Mar’19  :844
Mar’18  : 9186		Mar’18  : 1244				Mar’18  :668
Change  : 11.5% (Up)		Change  :  13.6% (Up)			Change  :26.3 % (Up)
MAR’19     QUATERLY
NET SALES (Cr)		Operating Profit (Cr)			(Profit After Tax)PAT (Cr)
Mar’19  :2598.6		Mar’19  :373			Mar’19  :210
Mar’18 :2459.4		Mar’18 :338			Mar’18 :189
Change : 5.6% (UP)		Change :10.3%(UP)			Change : 11%(Up)
52 weeks High / Low Ratio	304/180.2 =1.68		<2.2 is Good
Current Ratio	1.57		> 1.25 is Good,		A liquidity ratio that measures a company's ability to pay short-term obligations. The higher the current ratio, the more capable the company is of paying its obligations.
Quick Ratio (x)	0.74		> 1 is Good,		The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets
Sales growth	12%		CAGR >15% for last 7-10 years		Growth should be a consistent year on year. Ignore companies where a sudden spurt of sales in one year is confounding the 10 years performance. Very high growth rates of >50% are unsustainable.
Price to Sales ratio (P/S ratio)	1.48		< 1.5 is Good		James O’Shaughnessy: Buy if P/S ratio is < 1.5 and sell if >3
Price to Book value Ratio(P/B Ratio)	2.6 (Last 10 year average 3.44)		For a Good Company 3 – 6 is Ok & < 4 is very good		A stock is termed as undervalued if it has a lower P/B ratio. A low P/B ratio may also mean a company has some problems with its fundamentals.
Return On Asset (%)	13.42		> 5% is Good, < 5% is Not Good		An indicator of how efficient management is at using its assets to generate earnings. Calculated by dividing a company’s annual earnings by its total assets
Return On Equity (%)	13.55%		> 10% is Good,		Also called Return on net worth, it measures a company’s profitability by revealing how much profit a company generates with the money shareholders have invested, it is calculated by dividing the net profit after tax by shareholder's fund For high growth companies you should expect a higher ROE.
Cash Flow from Operation	1004 Cr		CFO>0		Positive CFO necessary
Tax Payout	31%		>30% Good		The tax rate should be near the general corporate tax rate unless some specific tax incentives are applicable for the company.
Profitability (Net profit Margin)	8.1%		>8 is Good		Look for companies with sustained operating profit & net profit margins over the years
P/E ratio	18.58 Industry P/E 19.84		<Industry P/E is Good.		P/E ratio is the most widely used parameter to analyze whether the stock of any company is overvalued or undervalued at any point in time. It is calculated by dividing the current market price (CMP) of stock by profit/earnings per share (EPS).
Dividend Yield (%)	1.3% (From 2007 company pays dividends continuously)		> 0 is Good, Higher is better		A financial ratio that shows how much a company pays out in dividends each year relative to its share price. The dividend yield is calculated as annual dividends per share divided by market price per share.
P/E to Growth ratio (PEG ratio)	2.12		<1 is Good		The price/earnings to growth ratio (PEG ratio) is a stock's price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio is used to determine a stock's value while taking the company's earnings growth into account and is considered to provide a more complete picture than the P/E ratio.
Promoter shareholding	Promoter-45.99% Corporate-0 % Public- 10.7% FII-0.21% DII-23.78% Others-19.32%		> 30% (Must for Promoter)		Higher the better
Interest Coverage Ratio	152.15		> 2 is Good, (For Banks & NBFC this is not Valid)		It is used to determine how easily a company can pay interest on outstanding debt. It is calculated by dividing a company's EBIT by the interest expenses.
Debt Equity Ratio	0		< 1 is Good, (For Banks & NBFC this is not Valid)		A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders equity. The debt/equity ratio also depends on the industry in which the company operates.
FUTURE GROWTH ESTIMATION
Crore	FY 2019 (E)			FY 2020 (E)				FY 2021 (E)
Revenue	11737			12576				13833
Net Profit	903			1012				1133
Earning/Share	10.6			11.90				13.30

Technically the sock is oversold .RSI & Stochastics  are in oversold zone. Rs. 174 is very strong support, maintain stop loss at this level & re-enter Rs.155.Price target as per EV/EBITDA Model,Price to sales Model Rs.244 in medium to short term.

Learn From Market Guru PETER LYNCH

Don't try to be a market timer

According to Lynch: "When stocks are attractive, you buy them. Sure, they can go lower. I've bought stocks at $12 that went to $2, but then they later went to $30. You just don't know when you can find the bottom."

Disclaimer: I am not a SEBI registered analyst. My view is only to Educate retail investor to invest in the stock market Safely & wisely. This is not any recommendation, only for Education purpose. Before investing contact your financial advisor. 

Pharma Giant Cadila Heathcare will Soon Start to Show its Power of Innovation

Cadila Healthcare is the 4th largest player in the Indian pharma market. with a strong focus on a niche segment in the US market. Cadila Healthcare Limited engages in the manufacturing, research, marketing,  development,  and distribution of pharmaceutical products. It offers finished dosage human formulations comprising generics, branded generics, and specialty formulations, including biosimilars and vaccines; active pharmaceutical ingredients; animal healthcare products; and consumer wellness products. The company offers products in the therapeutic areas of cardiovascular, gastrointestinal, respiratory, gynecology, pain management, dermatology, anti-infective, women's healthcare, and others

It also provides consumer wellness products, such as Sugar-Free, a low-calorie sugar substitute; EverYuth, a range of skincare products; and Nutralite, a cholesterol-free table spread. In addition, the company is developing 21 biosimilars and 6 novel products; and new drugs in cardio-metabolic disorder, inflammation, pain, and oncology and infectious diseases. Further, it engages in the retail pharmacy, and manpower supply and administration activities. Cadila Healthcare Limited was founded in 1952 and is based in Ahmedabad, India.

Cadila has 17 facilities for formulations, four for bulk drugs, three for vaccines, three for biologics, three for consumer wellness and two for animal health across India, the US, Brazil, and Germany.

Zydus aspires to be a research-based pharmaceutical company by 2020.

Key Attributes

 #  15 of the group’s brands feature amongst the top 300 pharma brands in
     India.

 #  World class manufacturing facilities comprising state-of-the-art
     manufacturing plants for APIs and formulations, including novel dosage
     forms . Of these, 5 are USFDA inspected.

# Robust regulatory pipeline – 260 ANDAs have            been filed of which 99  have been approved.
 

# The first Indian pharma company to launch an NCE in the market with 

    Lipaglyn, the world’s first drug to treat diabetic dyslipidemia.

# Launched the world’s first biosimilar of                         Adalimumab  ‘Exemptia’ to treat inflammatory             arthritis.It will be significant in the  product portfolio 
   in two years, focusing on the emerging market as       of  now.

# Robust innovation pipeline with over 1200                   researchers working across 5 R&D centers of             excellence focused on small molecules, 
   biologics, vaccines, formulation development and API process research.

# Partner of Choice for research-driven pharma majors like Abbott, Hospira,
   Bayer, Takeda, IDRI, Pieris AG, Prolong Pharmaceuticals and the World
   Health Organization to name a few.

# Heniz deal provides excellent brands COMPLAN,GLUCON-D, 
NYCIL,SOMPRITI BUTTER, will auger the stable growth for the company

CMP : Rs.338    Market Cap:Rs.34592 Cr.     EPS-Rs.  19.34      Face Value- Rs 1

MAR’18     YEARLY
Net Sales (Cr)		(Profit Before Tax)PBT (Cr)				(Profit After Tax)PAT (Cr)
Mar’18  : 11936		Mar’18  : 2331				Mar’18  :1766
Mar’17  : 9572		Mar’17  : 1615				Mar’17  :1485
Change  : 24% (Up)		Change  :  44% (Up)			Change  :19 % (Up)
DEC’18     QUATERLY
NET SALES (Cr)		(Profit Before Tax)PBT (Cr)			(Profit After Tax)PAT (Cr)
Dec’18  :3578		Dec’18  :671.7			Dec’18  :513
Dec’17  :3260		Dec’17  :724			Dec’17  : 543
Change : 9.7% (UP)		Change :7.18%(Down)			Change : 5.5% (Down) (High Material Cost & paid Interest increased than previous Qtr.)
DEC’18     9 MONTHLY
NET SALES (Cr)		(Profit Before Tax) PBT (Cr)					(Profit After Tax) PAT (Cr)
Dec’18  :9829		Dec’18  :1892					Dec’18  :1373
Dec’17  :8482		Dec’17  :1664					Dec’17  :1168
Change: 15.8%(UP)		Change : 13.7%(UP)					Change : 17.5%(UP)
52 weeks High / Low Ratio	434.05/314.40 =1.38		<2.2 is Good
Current Ratio	22.32		> 1.25 is Good,		A liquidity ratio that measures a company's ability to pay short-term obligations. The higher the current ratio, the more capable the company is of paying its obligations.
Quick Ratio (x)	1.49		> 1 is Good,		The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets
Sales growth	14 –17%		CAGR >15% for last 7-10 years		Growth should be a consistent year on year. Ignore companies where a sudden spurt of sales in one year is confounding the 10 years performance. Very high growth rates of >50% are unsustainable.
Sustainable Growth Rate (SSGR) Vs. Past sales Growth rate	14 –22% > 14 –17%		SSGR>Past sales Growth Is Good		If companies having Self Sustainable Growth Rate (SSGR) higher than the current growth rate, then they can keep on growing without raising debt and provide good long-term investment opportunities for investors.
Price to Sales ratio (P/S ratio)	2.72 (Last 3 years range is 3.3—4.9)		< 1.5 is Good		James O’Shaughnessy: Buy if P/S ratio is < 1.5 and sell if >3
Price to Book value Ratio(P/B Ratio)	3.88		For a Good Company 3 – 6 is Ok		A stock is termed as undervalued if it has a lower P/B ratio. A low P/B ratio may also mean a company has some problems with its fundamentals.
Return On Asset (%)	13.95		> 5% is Good, < 5% is Not Good		An indicator of how efficient management is at using its assets to generate earnings. Calculated by dividing a company’s annual earnings by its total assets
Return On Equity (%)	22.64%		> 10% is Good,		Also called Return on net worth, it measures a company’s profitability by revealing how much profit a company generates with the money shareholders have invested, it is calculated by dividing the net profit after tax by shareholder's fund For high growth companies you should expect a higher ROE.
Cash Flow from Operation	919 Cr		CFO>0		Positive CFO necessary
Tax Payout	24% Lat 10 Years Pays 8 to 24%		>30% Good		The tax rate should be near the general corporate tax rate unless some specific tax incentives are applicable for the company.
Profitability (Net profit Margin)	15%		>8 is Good		Look for companies with sustained operating profit & net profit margins over the years
P/E ratio	17.44 Industry P/E 26.53		<Industry P/E is Good.		P/E ratio is the most widely used parameter to analyze whether the stock of any company is overvalued or undervalued at any point in time. It is calculated by dividing the current market price (CMP) of stock by profit/earnings per share (EPS).
Dividend Yield (%)	1.09% (From 2011 company pays dividends continuously)		> 0 is Good, Higher is better		A financial ratio that shows how much a company pays out in dividends each year relative to its share price. The dividend yield is calculated as annual dividends per share divided by market price per share.
P/E to Growth ratio (PEG ratio)	0.79		<1 is Good		The price/earnings to growth ratio (PEG ratio) is a stock's price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio is used to determine a stock's value while taking the company's earnings growth into account and is considered to provide a more complete picture than the P/E ratio.
Promoter shareholding	Promoter-74.79% Corporate-1.41% Public- 5.6% FII-3.68% DII-5.46% Others-9.06%		> 30% (Must for Promoter)		Higher the better
Interest Coverage Ratio	32.85		> 2 is Good, (For Banks & NBFC this is not Valid)		It is used to determine how easily a company can pay interest on outstanding debt. It is calculated by dividing a company's EBIT by the interest expenses.
Debt Equity Ratio	0.58		< 1 is Good, (For Banks & NBFC this is not Valid)		A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders equity. The debt/equity ratio also depends on the industry in which the company operates.
FUTURE GROWTH ESTIMATION
Crore	FY 2019 (E)			FY 2020 (E)				FY 2021 (E)
Revenue	12965			14648				15903
Net Profit	1944			2197				2350
Earning/Share	19.05			21.75				22.9

  

REMARKS:
1) Financial Health  Analysis :
 The company maintains a very clean balance sheet where no equity dilution from 2011 & remains 102 crore, Reserves increased last 10 years decently(from 1,167 cr. to  8642 cr), Borrowings remained very little till 2016 @ 2500 cr but due to HEINZ acquisition deal debt increased to 5400 cr. but still below its Networth 7445 cr, which is easily manageable. one thing investor should watch out about share % of HEINZ between Zydus wellness & Cadila Healthcare which is not clear now.

2) Profit & Loss Analysis :

Company's Sales gradually increased the last 10 years, from 2,862 cr to 11900 cr. Profit increased from 500cr to 1734 cr. Recently interest increased due to Heinz deal &  Various research-based new product launching & we noticed that every day they get approved products from US-FDA which is encouraging.

3) Technical Price Analysis :

Chart Shows that @ 300--290 very strong & good support, Break this support may go 220 which is a very rare chance except for heavy market crash. above 337 target is 360 & 400.

4) Fundamental Price Analysis :

The following Price to sales Model, EV/EBITDA Model, Return/Profit Valuation Model, Monish Pabrai Dhandho Model, One Year Conservative Target will be Rs.404.

Happy Investing & enjoy HOLI. Friend to encourage & support me, pl. share this to your Kith & Kin so that I can continue this effort.

Disclaimer: I am not a SEBI registered analyst. My view is only to Educate retail investor to invest in the stock market Safely & wisely. This is not any recommendation, only for Education purpose. Before investing contact your financial advisor.