“Powering Up: The Rise of Exide Industries in the Energy Sector!”{2024}

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Exide industries

Overview of the share price of Exide Industries Ltd.: Current price: ₹375.05; Closed the previous trading session at ₹321.85; 52-week high: ₹383.50; 52-week low: ₹178.05; Market capitalization: ₹273,572.5 crore

• Yield on Dividend: 0.62%
Price-to-Earnings Ratio (P/E): 31.37; Leading company in the battery sector with a rising Return on Capital Employed (RoCE); Declining net cash flow; Stock prices are subject to volatility, therefore due diligence and analysis are essential.

What are the recent developments in Exide Industries?

Hyundai and Kia Collaborate on Localizing EV Batteries

• Exide Energy Solutions Ltd. collaborates with Hyundai Motor Company and Kia Corporation to localize EV batteries in India.
• Pay attention to Lithium-iron-phosphate (LFP) cells in line with plans for electric vehicles (EVs) in India.
• Presents Hyundai and Kia as forerunners in indigenous battery manufacturing for future electric vehicle models in India.

Meeting of the Board of Directors of Exide Industries: Final dividend recommendations for FY 2023–2024 as well as consideration and approval of audited financial figures are on the agenda.

Stock Performance of Exide Industries
• On the Bombay Stock Exchange, shares increased by more than 13% to Rs 364.55.
• The market value increased to Rs 30,995 crore.
• A total of 7.72 lakh shares, or Rs 27 crore, were exchanged.

What is Exide’s market share in the battery industry?

The Market Position of Exide Industries Ltd. in the Indian Battery Industry

• Approximately 50% of the organized lead-acid battery market is held by the majority.
In the organized original equipment manufacturer (OEM) segment, the majority market share is 60% for three- and four-wheelers and 65% for two-wheelers.

• Strength in organized OEM and replacement battery markets: Dominance in the home market.
• The industry’s top spot for car replacement batteries.
• Anticipated expansion in the Indian battery market as a result of developing economies and rising EV battery usage.
• Possible advantages for Exide and the Indian battery industry as a result of efforts to produce lithium-ion batteries locally.

What are Exide’s plans for expanding into lithium-ion batteries?

Plans for Lithium-Ion Batteries in India by Exide Industries Ltd.

In line with their goals for EV expansion, Hyundai and Kia have partnered with Exide Energy Solutions Ltd. to localize EV batteries in India. The goal is to create lithium-iron-phosphate (LFP) cells domestically.

• Exide Industries intends to invest ₹6,000 crore in its lithium-ion factory over the next 8–10 years, securing 80 acres of land in Karnataka. • Exide Industries plans to set up a multi-gigawatt lithium-ion cell manufacturing plant, applying for the National Programme on Advanced Chemistry Cell (ACC) Battery Storage.

• The collaboration demonstrates Exide’s dedication to adopting cutting-edge battery technologies and supporting the electric vehicle revolution in India.

Are there any collaborations with other EV manufacturers?

Hyundai Motor Company and Exide Industries Ltd. work together to localize EV batteries in India.
• With an emphasis on lithium-iron-phosphate (LFP) cells, Hyundai and Kia want to localize the production of EV batteries in India.
• Increasing competitiveness in the Indian EV market is the goal of the partnership.

How does this partnership impact Exide’s market position?

Localization of EV Batteries by Exide Industries Ltd. in India:

• Strengthens market presence: Exide’s affiliation with Hyundai and Kia fortifies its standing as a dependable provider of batteries within India’s expanding electric vehicle industry.

• Provides access to resources and expertise: Exide improves its capacity for battery manufacturing by utilizing the technological know-how and extensive global experience of Hyundai and Kia.

• Offers a competitive edge for local battery production: Exide’s emphasis on lithium-iron-phosphate cells complements India’s efforts to increase domestic battery production, setting it apart as a leader in locally produced batteries.

• Sets up Exide for long-term growth: By taking advantage of India’s recent rise in EV adoption, the alliance advances Exide’s sustainability and long-term growth.

How does this impact their financial outlook?

The Financial Impact of EV Battery Localization for Hyundai and Kia for Exide Industries Ltd.

• Revenue Growth: Sales and revenue may increase if there is a greater need for EV batteries.
• Market Share Expansion: Establishing yourself as a major force in the EV battery industry may open up new business avenues.
• Costs and Investment: Building a multi-gigawatt lithium-ion cell production facility will cost a significant amount of money.
• Profit Margins: Growth depends on maintaining healthy profit margins.
• Long-Term Prospects: Exide is well-positioned for long-term success given the EV industry’s rapid rise in India.
• Stock Performance: Stock prices may be impacted by good news regarding EV collaborations.

How does this impact their stock performance?

The Effect of Exide Industries Ltd.’s Stock Performance

• Positive Attitude: Exide’s dedication to expansion and innovation is demonstrated by its strategic partnerships, which frequently inspire investor confidence.

• Increased Investor Confidence: By strengthening Exide’s position in the EV battery business, the partnership increases investor confidence.
• Stock Price Movement: Traders and investors keep a close eye on the trend of rising stock prices, which is often attributed to good news.
• Long-Term Impact: Exide’s decision to start producing lithium-ion batteries is in line with India’s EV objectives, which could improve the company’s earnings and stock performance.

• Risk Factors: Entering a new market has dangers, such as competition and technology adoption, which should be carefully considered.
• Market Reaction: Due to the stock market’s dynamic response to news, cautious research, and a high-risk tolerance are necessary.

What are Exide’s recent stock trends?

Trends in Exide Industries Ltd. Stock

The BSE saw a 13% increase in shares on April 8, 2024, to ₹364.55, which was attributed to the Hyundai and Kia partnership. This increase increased the company’s market value to ₹30,995 crore.
• Overall Positive Performance: The stock increased by over 78% in the past year, and by about 15% year-to-date in 2024.
• The stock ended the latest trading session 1.5% ahead of the sector.
• Three Straight Days of Gains: The stock gained 5.21% overall.

Future of Exide share

Prospects for the Future of Exide Industries Ltd.

Growth in Revenue and Earnings: 17.8% and 7.9% annually, respectively, are anticipated.
• 19.5% EPS growth per year.
• For the following three years, ROE is expected to be 10.9%.

Latest Updates: • On November 9, 2023, the price target increased by 8.8% to ₹283.
• Development of lithium-ion technology via Exide Energy Private Limited, a subsidiary.

Analyst Coverage: • Bullish on chances for future development because of calculated actions and an emphasis on EV batteries.

Long-Term Prospects: • Exide is well-positioned in the EV landscape thanks to its collaboration with Hyundai and Kia; • A major step towards future growth is the company’s expansion into the production of lithium-ion batteries.

Investment considerations include: • Dealing with difficulties, such as rising venture costs; • Observing trends and taking risk tolerance into account for investors.