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Multi Baggers

Hem Securities

12.00 AM Jul 11th 2016

Exide Ind

BSE ID : 500086     NSE ID : EXIDEIND

RECOMMENDED PRICE 173.25

PEAK FROM RECO 249.70 44.13%

CURRENT PRICE 228.25 31.75%

Exide Industries Ltd. is one of the leading producers of lead-acid storage batteries for both automotive and industrial applications globally. We initiate a 'BUY' on the stock with a target price of Rs.215 with the medium to long term investment horizon.

Exide Industries

Exide Industries Ltd. is one of the leading producers of lead-acid storage batteries for both automotive and industrial applications globally. Exide designs, manufactures, markets and sells the widest range of lead acid storage batteries in the world from 2.5Ah to 20,600Ah capacity, to cover the broadest spectrum of applications. Using the latest technological inputs, it manufactures batteries for the automotive, power, telecom, infrastructure projects, computer industries, as well as the railways, mining and defence sectors.

Exide has nine factories strategically located all over India out of which 7 factories are dedicated to batteries and the other 2 factories manufacture Home UPS Systems. Together, they can produce around 34.2 million units of automobile batteries (including batteries for motorcycle applications) annually, and over 2,824 million ampere-hours of industrial power every year. Exide has subsidiaries in the UK, Singapore and Sri Lanka and its exports span 45 countries across six continents in a growing list of overseas customers.

Exide is one of the few battery manufacturers who are capable of manufacturing submarine batteries for a wide range of submarine designs, such as Russian (Foxtrot/ Romeo/ Kilo/ 636/Amur class), German (209 class), French (Scorpene class) and Indigenous (Nuclear powered) design submarines.

With extensive presence across geographies, the company has strong brand value, large network, widely spread product range, strong partners and collaborators relationship.

Valuation

With the revival in demand scenario, cost saving initiatives, strong distribution network, more focus on profitable segment, new product launches and technical collaborations; Exide is well placed to ride on the next wave of growth. The insurance business is also doing well. We believe the company is trading at an attractive valuation at 20.75x and 17.93x of standalone FY17EPS of Rs.8.35 and FY18EPS of Rs.9.66. We initiate a 'BUY' on the stock with a target price of Rs.215 (appreciation of about 24%) with the medium to long term investment horizon.

For full details, Click on the attachment.

Disclosure of Interest Statement Company Name

1. Analyst Ownership of the Stock - No

2. Hem & its Group Company Ownership of the Stock - No

3. Hem & its Group Companies’ Director Ownership of the Stock - No

4. Broking relationship with company covered - No

Disclaimer & Disclosure: This document is prepared for our clients only, on the basis of publicly available information and other sources believed to be reliable. Whilst we are not soliciting any action based on this information, all care has been taken to ensure that the facts are accurate, fair and reasonable. This information is not intended as an offer or solicitation for the purchase or sell of any financial instrument and at any point should not be considered as an investment advise. Reader is requested to rely on his own decision and may take independent professional advise before investing. Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited, Directors and any of its employees shall not be responsible for the content. The person accessing this information specifically agrees to exempt Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and further agrees to hold Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The companies and its affiliates, officers, directors, and employees, including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or sell the securities there of, company (ies) mentioned here in and the same have acted upon or used the information prior to, or immediately following the publication. Analyst Certification: The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.

ExideInds_HemSec_PYT.pdf

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