key data demand energising, margins charging up · 2020. 12. 18. · furthermore, management...

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KEY DATA

Rating BUY Sector relative Outperformer Price (INR) 193 12 month price target (INR) 220 Market cap (INR bn/USD bn) 164/2.2 Free float/Foreign ownership (%) 54.0/9.1

What’s Changed Target Price

Rating/Risk Rating ⚊

INVESTMENT METRICS

Demand energising, margins charging up

We hosted top management of Exide Industries (Exide) for investor meetings. Takeaways: i) Sales growth has picked up across the board from Q3FY21, and Exide has closed gap with competition; it is targeting a 200bps lead over market. ii) While lead prices are headed up in the near term, Exide is targeting 150bps in EBITDA margin expansion to 15% over the next 1.5 years led by cost levers. iii) Presence in lithium

ion is fortified with 1.5GWh capacity on stream and an order bagged.

In light of Exide’s improving OEM sales, margin focus, progress on lithium-ion JV (investment of INR1.9bn), and no further investments in the insurance arm, we are raising the valuation to 21x and rolling it over to June-22E, yielding revised TP of INR220. Retain ‘BUY’.

FINANCIALS (INR mn)

Year to March FY20A FY21E FY22E FY23E

Revenue 98,567 89,137 1,01,737 1,09,297

EBITDA 13,650 11,517 13,535 14,363

Adjusted profit 8,400 6,149 7,613 7,913

Diluted EPS (INR) 9.9 7.2 9.0 9.3

EPS growth (%) 10.3 (26.8) 23.8 3.9

RoAE (%) 13.4 9.4 10.9 10.5

P/E (x) 19.4 26.5 21.4 20.6

EV/EBITDA (x) 11.8 13.3 11.6 10.8

Dividend yield (%) 2.1 0.8 1.3 1.3

PRICE PERFORMANCE

Recovery in sales charging up well

Exides’s sales grew slower than competition over the last three quarters owing to

late operationalisation of its plants. They will fully recover in H2FY21 led by full

operationalisation of all plants and an all-round pickup. Besides, the spate of

initiatives such as market mapping, digitalisation, and transformation of the sales

structure should, according to management, help it outgrow the market by 200bps.

Putting energy in margin improvement and capital allocation

With its EBITDA margin lagging competition by 300bps, Exide targets to bridge the

gap by at least 150bps without compromising capital allocation. A transforming

supply chain, power cost reduction through solar, higher automation at factories and

warranty management would help Exide improve EBITDA margin to 15%+ in 1.5–2

years, up from 13–14% in the last four years. Capex in FY21 will be merely INR3bn.

Progressing well on lithium ion with 1.5 GWh capacity

With in-built flexibility on all types of lines at its lithium ion plant, the prismatic line

has been commissioned and the first bulk order (INR180mn) has been received from

an electric 3W OE. The cylindrical line will be ready soon and prototypes for electric

2W have begun. Management expects INR10bn in sales on ramp-up over four years.

Explore:

Outlook and valuation: Firmer trajectory; retain ‘BUY’

The company’s present endeavours are likely to bear fruit over the next two–three

years, setting the stage for Exide to outperform market growth. We estimate a

revenue CAGR of 11% from FY21–23E. Efforts on margin improvement should result

in higher EBITDA margin, thereby leading to cash accretion, with limited spends on

capex (FY21 to be INR3bn). Replacement volumes in FY22 are likely to be in line with

the peak of FY20, while investments in the Li-ion JV should begin to yield dividends.

All in all, we are raising FY22E EPS by 5% and estimate an EPS CAGR of 12% from

FY21–23E. Maintain ‘BUY’ with a revised SoTP-based TP of INR220 (earlier: INR202),

valuing the standalone business at 21x Jun 22 EPS (10% discount versus 15% earlier

to AMRJ’S target multiple) and the life insurance business at 1x embedded value.

-30

35

100

165

230

295

Sales Growth(%)

EPS Growth(%)

RoE(%)

PE(x)

Automobiles EXID IN Equity

25,000

29,400

33,800

38,200

42,600

47,000

125

145

165

185

205

225

Dec-19 Mar-20 Jun-20 Sep-20

EXID IN Equity Sensex

India Equity Research Automobiles December 18, 2020

EXIDE INDUSTRIES COMPANY UPDATE

Shradha Sheth Meera Midha +91 (22) 6623 3308 +91 (22) 4088 5804 [email protected] [email protected]

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EXIDE INDUSTRIES

Edelweiss Securities Limited

2 Edelweiss Research is also available on www.edelweissresearch.com, Bloomberg - EDEL, Thomson Reuters, and Factset

Financial Statements

Income Statement (INR mn) Year to March FY20A FY21E FY22E FY23E

Total operating income 98,567 89,137 1,01,737 1,09,297

Gross profit 30,547 26,476 29,537 31,406

Employee costs 6,664 6,397 6,813 7,256

Other expenses 10,233 8,561 9,189 9,787

EBITDA 13,650 11,517 13,535 14,363

Depreciation 3,626 3,715 3,933 4,309

Less: Interest expense 94 140 100 90

Add: Other income 639 559 675 615

Profit before tax 10,352 8,221 10,178 10,579

Prov for tax 2,097 2,072 2,565 2,666

Less: Other adjustment 0 0 0 0

Reported profit 8,256 6,149 7,613 7,913

Less: Excp.item (net) (144) 0 0 0

Adjusted profit 8,400 6,149 7,613 7,913

Diluted shares o/s 850 850 850 850

Adjusted diluted EPS 10 7 9 9

DPS (INR) 4.1 1.5 2.5 2.5

Tax rate (%) 20.3 25.2 25.2 25.2

Important Ratios (%) Year to March FY20A FY21E FY22E FY23E

Automotive (% of rev.) 71.7 71.0 71.4 70.8

Industrials (% of rev.) 27.3 28.0 27.6 28.2

Gross margin (%) 31.0 29.7 29.0 28.7

EBITDA margin (%) 13.8 12.9 13.3 13.1

Net profit margin (%) 8.5 6.9 7.5 7.2

Revenue growth (% YoY) (6.9) (9.6) 14.1 7.4

EBITDA growth (% YoY) (3.3) (15.6) 17.5 6.1

Adj. profit growth (%) 10.3 (26.8) 23.8 3.9

Assumptions (%) Year to March FY20A FY21E FY22E FY23E

GDP (YoY %) 5.0 (6.5) 7.5 6.0

Repo rate (%) 4.4 4.0 3.8 4.0

USD/INR (average) 70.9 75.0 73.0 72.0

4W OEM (mn units) 11.8 10.6 2.2 2.5

4W Aftermkt (mn units) 27.3 28.0 10.1 9.8

2W OEM (mn units) 12.2 12.4 9.3 10.6

2W Aftermkt (mn units) 9.7 10.2 9.4 10.0

Home Inverter (% YoY) (7.0) (17.0) 15.0 16.0

UPS (% YoY) 5.0 (8.0) 14.0 10.0

Valuation Metrics Year to March FY20A FY21E FY22E FY23E

Diluted P/E (x) 19.4 26.5 21.4 20.6

Price/BV (x) 2.6 2.4 2.2 2.1

EV/EBITDA (x) 11.8 13.3 11.6 10.8

Dividend yield (%) 2.1 0.8 1.3 1.3

Source: Company and Edelweiss estimates

Balance Sheet (INR mn) Year to March FY20A FY21E FY22E FY23E

Share capital 850 850 850 850

Reserves 62,111 66,731 71,794 77,156

Shareholders funds 62,961 67,581 72,644 78,006

Minority interest 0 0 0 0

Borrowings 280 280 280 280

Trade payables 10,303 9,280 11,149 11,978

Other liabs & prov 8,152 5,443 5,613 5,613

Total liabilities 82,420 83,307 90,409 96,600

Net block 23,372 23,157 25,724 28,915

Intangible assets 365 365 365 365

Capital WIP 2,969 2,969 2,969 2,969

Total fixed assets 26,705 26,490 29,057 32,249

Non current inv 20,521 20,521 20,521 20,521

Cash/cash equivalent 1,733 9,452 5,556 8,101

Sundry debtors 8,153 7,082 9,756 10,181

Loans & advances 322 291 332 357

Other assets 24,986 19,471 25,188 25,193

Total assets 82,420 83,307 90,409 96,600

Free Cash Flow (INR mn) Year to March FY20A FY21E FY22E FY23E

Reported profit 8,256 6,149 7,613 7,913

Add: Depreciation 3,626 3,715 3,933 4,309

Interest (net of tax) 63 94 67 60

Others (653) (94) (67) (60)

Less: Changes in WC (2,155) 2,884 (6,392) 373

Operating cash flow 9,136 12,749 5,154 12,595

Less: Capex 4,660 3,500 6,500 7,500

Free cash flow 4,477 9,249 (1,346) 5,095

Key Ratios Year to March FY20A FY21E FY22E FY23E

RoE (%) 13.4 9.4 10.9 10.5

RoCE (%) 17.3 12.8 14.6 14.1

Inventory days 107 112 98 103

Receivable days 35 31 30 33

Payable days 58 57 52 54

Working cap (% sales) 16.3 14.7 19.2 17.5

Gross debt/equity (x) 0.4 0.4 0.4 0.4

Net debt/equity (x) (2.3) (13.6) (7.3) (10.0)

Interest coverage (x) 106.6 55.7 96.0 111.7

Valuation Drivers Year to March FY20A FY21E FY22E FY23E

EPS growth (%) 10.3 (26.8) 23.8 3.9

RoE (%) 13.4 9.4 10.9 10.5

EBITDA growth (%) (3.3) (15.6) 17.5 6.1

Payout ratio (%) 42.2 20.7 27.9 26.9


EXIDE INDUSTRIES

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Key takeaways

Sales transformation: Digital mapping/structure transformation

Exide Industries boasts market leadership in batteries across segments in

automotive (except exports) and industrial (except telecom), logging a 10.8% CAGR

over the last five years.

While the company logged strong sales growth over FY17–19 beating competition,

sales growth has lagged peers over the last six quarters. Sales were also hit over the

last three quarters led by the late operationalisation of its plants in Maharashtra.

Sales will fully scale up in Q3 and Q4FY21 led by full operationalisation of all plants

and an all-round pickup.

Furthermore, management expects sales to grow 200bps ahead of market led by the

following initiatives.

With market mapping, digitalisation of sales and structure transformation, the

company has been able to improve sales growth.

The market mapping exercise undertaken over the last one year helped it identify

5,000 consumption centres spanning 23 regions, versus 13 earlier. More than

100,000 retail partners were thus mapped.

Digitalisation efforts: The company took a massive digitalisation initiative,

thereby putting more than 4,000 channel partners (dealers) and 500 sales

personnel on cloud. The company also digitalised its service efforts, leading to

reduced lead times to dealers from three–four days to barely about four hours

and now offers a doorstep service to customers, which can be booked

digitally/online. These efforts have reinforced dealer confidence in the network

and should yield results over the next 9–12 months.

Sales picking up: Sales have lagged led by the covid-19 hit over the past three

quarters and late operationalisation of its three plants in Maharashtra. That said,

sales would fully scale up in Q3 and Q4FY21 led by full operationalisation of all

plants and an all-round pickup.

Telecom: Exide ceded market share in the telecom segment, intentionally

reducing sales in the wake of weak pricing and higher competition. However, the

company regained its market share to 30% over the last quarter with segmental

sales having doubled.

Furthermore, with a key customer, BSNL, having paid outstanding dues in last 12

months, and now going into fresh tendering, management believes the overall

telecom market for batteries will start growing.

Recovery is expected to drive FY22 replacement revenues to the FY20 levels.

Focus on export market: Exports currently make up less than 10%. So, the

company is targeting to double exports over the next three years led by growth

in both the automotive and industrials divisions.

Exide has been lagging competition in the automotive market in exports.

Consequently, management is focusing on South East Asian and Middle Eastern

markets and plans to localise sales force across the two geographies. An office

has already been set up in the UAE, with plans underway for an office in Malaysia

to aid on-ground support. The company has also made inroads into the difficult

US markets, having bagged a one-year contract.

EXIDE INDUSTRIES



Exide remains the market leader in industrial exports, with exports forming 13%

of industrial sales. Management aims to grow this to more than 15% in FY22,

with expansion in two key segments – traction batteries and medium VRLA

batteries. The company has seen strong demand from export markets,

particularly Europe for its traction batteries (used in forklifts and material

handling equipment), with e-commerce finding favour post-lockdowns.

Muted growth in auto OEM sales for the last two years, and it would hit the

replacement market from FY23. However, based on all the above initiatives,

Exide targets 200bps higher sales growth than the market.

Within the replacement market, the company expects to gain share from the

small-scale sector. Of the replacement battery market, small-scale batteries form

35-40%, which mainly includes players within 3W, CV and tractor operators.

Given low credit and tightened supply chains during and post-lockdowns,

unorganised players have undergone significant stress. This could become an

area of high-growth for the company aiding in market share expansion as well.

Cost leadership and margin levers

Exide lags the competition on margins by 300bps. Hence, the company has identified

margin levers and plans to reduce costs by 150bps over the next 12–18 months, and

achieve margins of 15–16% over FY22–FY23E (13–14% in FY20–21). This will be

driven by:

Supply chain and logistics management: Supply chain costs are ~3% of top line.

The company is looking at transforming its supply chain with digitalisation and

overhead optimisation. It aims to rationalise 156 depots (to 90 depots in phase

I) and to 50 depots in phase 2 over the next one year.

Power costs: Power and fuel costs formed 3.3% of turnover, 4.2% of costs in

FY20. Exide has commissioned a solar power plant each in south and west India,

with a third plant underway in north India. The company is looking at power

reduction through solar with 66MW capacity.

Packaging costs: The company has identified savings by procuring plastic

packaging materials, which should drive cost down.

Manpower costs: The efforts on manpower rationalisation and automation are

underway, especially with the installation of punch grid technology machines

with continuous lines instead of patch power processing, which has improved

efficiency by 50%. However, given the operating model, Exide is likely to have a

higher manpower cost vis-à-vis its peer set.

Warranties: Due to its presence in higher warranty products such as 3W and

home UPS, Exide’s warranty costs are 0.7% higher than peers; however,

management has undertaken efforts to mitigate leakages in the system and also

scaling up lower-end brand Dynex in tier-2 and -3 cities, which offers lower

warranty.

Raw material price increase and volatility: While lead prices have been inching

up, as per management, they raised prices by 1.5% in September. Furthermore,

Exide has a mix of raw materials with pure lead constituting 40% of raw material

costs (sourced from Hindustan Zinc) and recycled lead constituting the balance,

which is 5–6% cheaper than pure lead and not linked to LME. Thereby, they are

increasing consumption of recycled lead.


EXIDE INDUSTRIES


Lead prices on an upward trajectory

Source: Bloomberg, Edelweiss Research

Technology tie-ups

The company’s growth has largely been focused on technological collaborations. The

following collaborations are underway or planned over the medium to long-term:

1. Hitachi Chemicals Co., Japan: Exide formed a partnership with Hitachi, Japan in

1990s for a range of advanced high-power automotive batteries as well as VRLA

industrial range of products.

2. Furukawa Battery Company, Japan: Exide has a technical assistance and

collaboration agreement with Furukawa for various automotive applications

spanning both 2Ws and 4Ws. The entire range is being upgraded to comply with

BSVI emission norms. The company is also developing Ultra batteries in

collaboration with Furukawa.

3. EastPenn Manufacturing, USA: The company collaborated with EastPenn for

automotive and industrial batteries. Exide has recently developed the industrial

ultra battery for energy storage application, which is ready for commercial

deployment. The company is also developing Ultra batteries in collaboration

with EastPenn.

4. Moura Batteries, Brazil: With stricter energy norms and more stringent

measures likely to be enforced, there is likely to be higher demand for more

sophisticated car batteries. In anticipation of the same, Exide collaborated with

Moura, to develop advanced automotive batteries required for BSVI compliant

vehicles.

5. Leclanché, Switzerland: Exide entered into a JV with an 80% share for lithium

ion (Li ion) batteries. The JV is has a production scale of 1.5GWh with six

production lines ordered for the battery pack assembly for cylindrical, prismatic

and pouch cells.

6. E-Coult, Australia: Exide collaborated with E-Coult for Battery Management

Systems (BMS) and energy storage solutions based on the ultra-battery

technology. These are heavier batteries, which are voluminous, and can replace

stationary batteries wherever possible.

7. Advanced Battery Concepts, USA: Exide is the fourth company globally that, in

collaboration with ABC, has licensed bi-polar batteries, which should change the

1,500

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2,700

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EXIDE INDUSTRIES



archaic perception around lead acid batteries. These batteries could also reduce

lead requirement by about 40%, resulting in lower costs.

Summary of Exide's technological collaborations

Source: Company, Edelweiss Research

Lithium ion JV: Progressing well

Taking a lead in India’s nascent lithium-ion battery market, Exide formed a JV with

Leclanche of Switzerland, which is now progressing well. Capacity of 1.5GWh with

six production lines has come on stream for battery pack assembly. Exide’s

investment in the JV has gone up from INR410mn in FY19 to INR1.9bn in FY20, for

an 80% stake. Going forward, the company plans to spend INR0.8–1bn annually in

the JV.

The company is concentrating on value-addition on module making and Battery

Management Systems (BMS)—and not cell manufacturing at present—as it gives

them the flexibility to take on the market the way it develops.

The company has concentrated on engineering expertise and hired 32 Engineers

from Bosch for contract-based designing.

Exide collaborated with E-Coult for Battery Management Systems (BMS) and

energy storage solutions based on the ultra-battery technology.

The capacity is used for both automotive and industrial applications such as

Telecom, UPS, and energy storage.

Exide has built in maximum flexibility at its lithium ion factory, having capacities

for all types of modules: cylindrical, prismatic, and pouch form.

Prismatic capacity has been fully commissioned and validated this month. The

first bulk order has been received for 3,000 battery packs for an electric 3W from

a large OEM player for INR180mn. This line will be also used for making e-bus

and telecom modules.


EXIDE INDUSTRIES


Prismatic line status


Cylindrical line installation will be completed by 30th December. This line will be

used for making battery modules for electric 2Ws. Prototypes are under testing

with 2W OEMs.

Cylindrical line status


The Pouch module line has been developed by Leclanche, its Swiss partner. This

line is used for making battery modules for bus/car applications. Homologation

for bus orders for 10,000km battery packs is undertaken.

EXIDE INDUSTRIES



Pouch module line status


The JV has set up an R&D centre in Bengaluru where several product

development programmes are underway. Many pilot orders have been collected

from multiple automotive OEMs, as well as large telecom operators, UPS

manufacturers and solar PV companies.

Furthermore, the modules produced by the lines are assembled into low voltage

or high voltage packs.

Low Voltage Pack Line: This has been commissioned and ready for production.

The line will be used for making modules into packs for all low-voltage

applications such as 2W, 3W, Telecom and UPS.

High Voltage Pack Line: This line has been commissioned and is ready for

production. HV line to be used for making high-voltage packs for bus/car and

other high voltage applications.

According to management, the company can generate INR10bn on full-scale

utilisation in sales in this lithium ion capacity. They are expecting 60–70% utilization

in three years.

Exide management reckons cell manufacturing makes economic sense at 5GW,

wherein the investment is USD800mn.

EV penetration

Management believes penetration of EVs will be slower in PVs and faster in 2W,

buses and 3W. Management believes two broad concerns plague EVs at present:

high initial cost and lack of charging infrastructure.

2W and 3W electrification: Management expects 10% of 2W universe to be EV

by 2025 and 25% of universe to be EV by 2030. While costs are broadly 2x of a

traditional engine vehicle at present in 2W (INR1.25lac versus INR55,000 for a

comparable ICE engine battery requirement), with improvement in scale and

efforts on cost reduction, initial cost to customer is likely to reduce over the

medium to long-term. Furthermore, the lower cost of maintenance and power

costs vis-à-vis fuel costs make a compelling argument for intra-city transfer in


EXIDE INDUSTRIES


small vehicles. Within 2W, 3W Exide is looking at designing the cells and

providing after sales and warranty as well.

For buses and cars, intra-city travel is likely to be a major driver for PVs with

charging infrastructure available at depots and homes for consumers. However,

PVs are likely to see lower adoption owing to distance anxiety among customers

without necessary infrastructure in place.

4W: Within 4Ws, Exide is planning to tie up with smaller OEMs for assembly of

cells for their EV requirements. Owing to the current geopolitical scenario, OEMs

are looking at diversifying away from Chinese suppliers. Large 4W OEMs are likely

to pursue their own designing and manufacturing. Given the present geo-

political climate, management sees lower dependence on China for battery pack

imports than planned earlier by OEMs and may undertake contract

manufacturing for smaller OEMs, without taking additional warranty risk.

Consequently, management estimates 2W and 3W EV usage to be at 10–25% of the

market by 2030, while the shift in buses will be contingent on government subsidies.

Four wheeler passenger vehicles will see slower shift depending on charging

infrastructure in the country.

Furthermore, battery life in 2W and 3W EVs and e-rickshaws is likely to be two–three

years, presenting a strong replacement market, while PVs are likely to have a longer

battery life. With technology ready for 2W, 3W, buses, Telecom and UPS, Exide plans

to increase its presence in these categories.

Capex and capital allocation

Capital allocation: With INR10bn of post-tax cash generated each year, the company

has decided on an average 30% dividend payout every year. Further, the company

had liquid cash of INR12.8bn as on Q2FY21.

Capex: In FY21, Exide will look at just the spillover capex of INR2.5–3bn. Going

forward, the company will look at restarting capex and 15–20% capacity expansion,

it will be mainly brownfield capex. The company annually guided for INR0.8-1bn of

capex for lithium ion capacities.

Life Insurance business

The company had made investments of INR16.8bn as of FY20 (last incremental

investment of INR1bn in October-18) in the Exide Life insurance business, and no

further capital infusion is likely in the business.

While growth remains a paramount concern, the company has expanded at a 13%

CAGR in sales over the last four years. Furthermore, the solvency ratios are

comfortable at 210%. The business currently has an embedded value of ~INR25.4bn

with a notable presence in South, and some expansion underway in North, East and

Western markets. While Exide Life lacks a large banking partner for distribution, it

has several co-op banks as distribution partners. The renewal business continues to

grow post-lockdown.

EXIDE INDUSTRIES



We assign a revised TP of INR220 based on SoTP

Particulars Valuation

methodology

Value/Share

(INR) Remarks

Standalone

operations

Earning

multiple 190 Core standalone business valued at 21x

Jun 22E earnings

Exide Life Insurance

Embedded

value

multiple

30 Assigning 1x embedded value as on 31st

March, 2020

Target Price 220


We have increased our FY22E EPS by 5%

Old New % Change

FY21E FY22E FY21E FY22E FY21E FY22E

Revenue 88,023 1,00,580 89,137 1,01,737 1.3 1.2

EBITDA 11,379 13,208 11,517 13,535 1.2 2.5

PAT 5,996 7,266 6,149 7,613 2.6 4.8

Source: Edelweiss Research


EXIDE INDUSTRIES


Company Description

Exide is a leading battery producer in India and one of the largest power storage

producers in South Asia. It supplies batteries to the automotive, industrial,

infrastructure development, information technology and defence sectors in India. It

has six battery manufacturing facilities located across India. In addition, through its

subsidiaries, the company has two lead smeltering facilities that supply a significant

amount of the company's lead requirement. The company is servicing 8 mn

customers via all different types of batteries. Current capacity in 4W, 2W and

industrial batteries is at 12.2mn units, 22mn units and 2.5mn amph, respectively.

The company recently increased its stake in ING Vysya Life Insurance Company (IVL)

to 100%. IVL began its operations in 2001 and currently services more than 1mn

customers. Further Exide ventured in lithium ion pack assembly and battery

management systems with 1.5 GW capacity which was commissioned in Dec 20.

Investment Theme

Company is well poised to cater to the replacement demand within automotives and

inverters and telecom segment within industrial batteries. Also company is

undertaking technology upgradation and cost cutting initiatives. Given the

replacement nature of business, battery volumes may surge in the near term. We

expect replacement volumes to touch FY20 peak in FY22.

Our thesis is reinforced by improving OEM sales where Exide is a market leader with

60% plus market share, strong margin focus, with increase by 150bps, taking lead in

the lithium ion JV for pack assembly and Battery Management System (BMS) with

investments of INR1.9bn, and no further investments planned in the insurance arm.

Key Risks

Downside risks

If economic slowdown prolongs, not only would it affect OEM demand but also

prolong the replacement cycle, thus affecting the replacement demand. Any

increase in competitive activity, which triggers price war, will negatively impact

margin.

Upside risks

Lead prices bounced back by 10% QoQ while USD-INR continues to remain volatile.

However Exide has pricing power and usually effects price increases with a lag.

EXIDE INDUSTRIES



Additional Data Management

Chairman Bharat D. Shah

Vice-Chairman R.B. Raheja

CEO G. Chatterjee

CFO A.K. Mukherjee

Auditor B S R & Co

Holdings – Top 10* % Holding % Holding

ICICI Prudential MF 4.57 ABSL AMC 1.94

Hathway Investment 4.32 Govt Pension Fund 1.91

Life Insurance Corp 3.09 HDFC Life 1.73

HDFC AMC 2.56 DSP Investments 1.50

New India Assurance 1.97 ICICI Prudential Life 1.28

*Latest public data

Recent Company Research Date Title Price Reco

10-Nov-20 Robust rebound in demand ; Result Update

202 Buy

04-Aug-20 Covid-19 derails auto OEMs; Result Update

184 Buy

06-Jun-20 Auto OEMs sore; COVID-19 exacerbates pain; Result Update

205 Buy

Recent Sector Research Date Name of Co./Sector Title

16-Dec-20 Automobiles Commodities spike: Will history repeat? ; Sector Update

02-Dec-20 Tata Motors Brexit and beyond…; Company Update

26-Nov-20 Bajaj Auto Festive sales undershoot expectations ; Company Update

Rating Interpretation

Source: Bloomberg, Edelweiss research

Daily Volume

Source: Bloomberg

Rating Distribution: Edelweiss Research Coverage

Buy Hold Reduce Total

Rating Distribution* 162 63 14 239

>50bn >10bn and <50bn <10bn Total

Market Cap (INR) 184 59 4 247

* stocks under review

Rating Rationale

Rating Expected absolute returns over 12 months

Buy: >15%

Hold: >15% and <-5%

Reduce: <-5%

TP284

TP292

TP260

125

160

195

230

265

300

Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20

(IN

R)

EXID IN Equity Buy Hold Reduce0

4

8

12

16

20

Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20

(Mn

)


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key data demand energising, margins charging up · 2020. 12. 18. · furthermore, management...

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