Exide Industries was listed on the NSE on June 17, 2003. In the last five years, the company has given a massive return of more than 170% to its investors. Will Exide continue to provide such great returns in the future as well? Let’s explore Exide Industries’ growth potential and Exide Industries share price target from 2025 to 2050 in this article.
About Exide Industries
Exide Industries manufactures batteries for automobiles, bicycles, inverters, and industrial applications. It was founded in 1947 and is one of India’s leading battery manufacturers. The company manufactures various types of batteries, including lead-acid and lithium-ion, for a variety of applications. Exide is a major player in both the automotive and industrial sectors, supplying batteries to car manufacturers, telecommunications companies, and power backup systems. It also has manufacturing facilities throughout India and exports its products to various countries.
Exide Industries Business Model
- Battery Sales: Exide sells a variety of batteries for automobiles, bikes, trucks, and industrial machines. This is its main source of revenue.
- Industrial Batteries: The company manufactures large batteries used in telecom towers, solar panels, and large factories. These batteries help with power backup.
- Home Inverters: Exide sells inverters and batteries for homes to supply electricity during power outages.
- Recycling: Exide collects old batteries, recycles them, and reuses the materials to create new batteries. This lowers costs and increases profits.
- Exports: The company exports its batteries to a number of countries, which helps it generate additional revenue.
- OEM Supply: Exide sells batteries directly to car and bike companies, which use them in new vehicles before selling to customers.
- Aftermarket Sales: When people need new batteries for their vehicles or machines, they buy Exide batteries from shops. This is a major income source.
- Service & Maintenance: Exide provides battery maintenance, testing, and repair services, which help in earning extra money.
Exide Industries Fundamental Analysis
| Stock Name | Exide Industries Ltd. |
|---|---|
| NSE Symbol | EXIDEIND |
| Market Cap | ₹ 29,393 Cr. |
| 52W High | ₹ 620 |
| 52W Low | ₹ 303 |
| Stock P/E | 37.1 |
| Book Value | ₹ 163 |
| Dividend Yield | 0.58 % |
| ROCE | 10.2 % |
| ROE | 7.05 |
| Face Value | ₹ 1.00 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 45.99% | 45.99% | 45.99% |
| FIIs | 12.32% | 13.57% | 11.72% |
| DIIs | 18.92% | 18.57% | 17.64% |
| Government | 0.00% | 0.00% | 0.00% |
| Public | 22.76% | 21.88% | 24.63% |
| No. of Shareholders | 7,17,785 | 9,43,331 | 12,81,235 |
Key Factors Driving Exide Future Growth
- Strong Brand Reputation: Exide’s strong brand reputation helps it attract more customers.
- Expanding Product Line: Exide is constantly adding new and improved battery solutions for a variety of industries, including automobiles, industrial equipment, and renewable energy.
- Growing Demand for Electric Vehicles (EVs): As more people adopt electric vehicles, Exide’s battery business is expected to expand significantly.
- Investment in Advanced Technology: Exide invests in advanced technology to develop high-performance, long-lasting batteries.
- Focus on Renewable Energy: As solar and wind energy become more prevalent, Exide is developing batteries that can efficiently store power, expanding its market opportunities.
- Strong Distribution Network: Exide has a wide network of dealers and service centers, making its products easily available to customers.
- Expansion in International Markets: Exide’s expansion into international markets is resulting in higher sales and profits.
- Strategic Partnerships and Collaborations: Exide is working with other companies to improve its technology and expand its business.
- Government Support and Policies: Exide benefits from government policies promoting clean energy and electric vehicles, which increases battery demand.
- Focus on Sustainability: Exide is developing eco-friendly battery solutions and recycling programs to attract environmentally conscious customers.
Pros of Exide Industries
- Low Debt Levels: With a low debt-to-equity ratio of 0.14, Exide has a minimum dependency on debt, reducing financial risk and interest expenses.
- Increase in Institutional Confidence: DIIs have increased their holding to 17.64% in December 2024 from 17.96% in September 2024 while FIIs have increased their holding to 11.72% in December 2024 from 12.31% in September 2024, indicating a strong institutional confidence in the company’s future growth prospects.
Cons of Exide Industries
- Poor Sales Growth – Exide has delivered a poor sales growth of 3% over the last five years.
- Poor Profit Growth – Exide profit has grown at a CAGR of just 2% over the last five years, showing weak earnings growth over time.
- Overvaluation Concern: Exide is trading at a PE ratio of 37.4, which is relatively higher than the industry average of 24.6, which indicates that the stock may be overvalued compared to its peers.
| Years | Target Price |
|---|---|
| Exide Share Price Target 2025 | ₹435 to ₹540 |
| Exide Share Price Target 2026 | ₹520 to ₹700 |
| Exide Share Price Target 2027 | ₹622 to ₹900 |
| Exide Share Price Target 2028 | ₹750 to ₹1180 |
| Exide Share Price Target 2029 | ₹900 to ₹1530 |
| Exide Share Price Target 2030 | ₹1080 to ₹2000 |
| Exide Share Price Target 2035 | ₹2150 to ₹6000 |
| Exide Share Price Target 2040 | ₹4300 to ₹17910 |
| Exide Share Price Target 2050 | ₹17220 to ₹107470 |
Conclusion
In conclusion, Exide Industries has a strong market presence with a diverse business model and growth potential driven by factors such as increasing demand for EV batteries, technological advancements, and expansion into international markets. However, challenges like slow sales and profit growth, as well as high stock valuation, could impact future returns. For the latest updates, you can visit Exide Industries official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.