EXIDE INDUSTRIES LTD. 13 April 2018 CMP INR 237. Initiating Coverage (BUY) Target Price INR 294

Similar documents
ULTRAMARINE & PIGMENTS LTD

SHRIRAM TRANSPORT FINANCE COMPANY LTD

KNR CONSTRUCTIONS LTD

NRB BEARINGS LTD CMP. 16 July 2018 INR 164. Target Price. Initiating Coverage (BUY) INR 200

INDIAN TONERS & DEVELOPERS LTD

TRIDENT LTD. 21 Sept 2017 CMP INR 101. Initiating Coverage (BUY) Target Price INR 126

RURAL ELECTRIFICATION CORPORATION LTD

TECHNO ELECTRIC AND ENGINEERING COMPANY LTD

EMMBI INDUSTRIES LTD. 27 April 2017 CMP INR 161. Initiating Coverage (BUY) Target Price INR 207

SUBROS LTD CMP. 28 Dec 2018 INR 266. Initiating Coverage (BUY) Target Price INR 332

ASIAN GRANITO INDIA. 30 July 2016 CMP INR 219. Initiating Coverage (BUY) Target Price INR 289

KELLTON TECH SOLUTIONS

GROWTH TO BE DRIVEN BY:

City Union Bank BUY. 24 February 2016 INR82

Can Fin Homes BUY. 23 September 2015 INR821

Amara Raja Batteries. CMP: INR517 TP: INR560 Buy

Century Plyboards (I) Limited

ECOSCOPE. Real GDP growth eases on lower net indirect taxes. The Economy Observer. Real GVA growth exactly as expected

Mahindra & Mahindra Ltd.

Individual Housing Loans: Rationalization of Risk-Weights and LTV Ratios

Colgate-Palmolive. Q2FY18 Result Update Volume pressure continues; Soft A&P aids Margin. Sector: FMCG CMP: ` 1,063. Recommendation: HOLD

ITC. 1QFY18 Result Update Higher Excise duty impacts sales; healthy EBITDA margin. Sector: FMCG CMP: ` 289. Recommendation: BUY

Havells India. Q1FY18 Result Update Strong Sales growth; Margins decline. Sector: Consumer Durable CMP: ` 467. Recommendation: BUY

Colgate-Palmolive. Q1FY18 Result Update Volume pressure continues; Soft A&P aids Margin. Sector: FMCG CMP: ` 1,083. Recommendation: HOLD

Amara Raja Batteries BUY. Performance Highlights. CMP `1,010 Target Price `1,167. 2QFY2017 Result Update Auto Ancillary. 3-year price chart

Pidilite Industries. CMP: INR164 TP: INR186 Buy

TTK Prestige. Q2FY18 Result Update Healthy Sales growth; Margins expands. Sector: Consumer Durable CMP: ` 6,145. Recommendation: HOLD

Mahindra & Mahindra Ltd.

Nestlé India. Q2CY17 Result Update. Positives priced in; Downgrade to Hold. Sector: FMCG CMP: ` 6,786. Recommendation: HOLD

Mahindra & Mahindra Ltd.

Titan Industries. CMP: INR222 TP: INR220 Neutral

Symphony. Q3FY18 Result Update Strong performance; valuations expensive. Sector: Consumer Durable CMP: ` 1,970. Recommendation: HOLD

Asian Paints. CMP: INR2,722 TP: INR3,161 Buy

Niket Shah

Mphasis. 1QFY18 Result Update. Margins dip; valuations not supportive. Sector: Technology CMP: ` 614. Recommendation: Sell

Havells India. Q4FY17 Result Update Strong Sales growth; Margins stable. Sector: Consumer Durable CMP: ` 515. Recommendation: BUY

REPORT THREADBARE. New accounting standards from FY The ART of annual report analysis

Transport Corporation of India Ltd.

ITC ACCUMULATE. Performance Highlights CMP. `257 Target Price `284. 3QFY2017 Result Update FMCG. Investment Period 12 Months

HUL. Q4FY17 Result Update Healthy performance, rich valuations. Sector: FMCG CMP: ` Recommendation: Hold

Parag Milk Foods BUY. Performance Update CMP. `256 Target Price `330. 2QFY2019 Result Update Dairy Products. Investment Period 12 Months

GMM Pfaudler Limited BUY. Performance Update CMP. `945 Target Price ` QFY2019 Result Update Industrial Machinery. Investment Period 12 Months

Symphony Ltd. RESULT UPDATE 31st October 2017

Hardick Bora

Larsen & Toubro. CMP: INR1,160 TP: INR1,417 Buy

CMP: INR415 TP: INR 471 BUY

NIIT Technologies. 3QFY19 Result Update. Robust revenue visibility, Outlook robust

Unitech. CMP: INR20 TP: INR30 Buy

All the more bullish, TP upgraded

Punjab National Bank. CMP:INR1,103 TP:INR1,500 Buy

JSW Steel. CMP: INR670 TP: INR391 Sell Merger with JSW Ispat

Hindustan Unilever. Q4FY18 Result Update Strong volume growth on weak base and uptick in rural. Sector: FMCG CMP: ` 1,516. Recommendation: HOLD

Jubilant Foodworks. CMP: INR1,189 TP: INR1,0541,054 Neutral

NIIT Technologies. 2QFY19 Result Update. Robust revenue visibility, Outlook robust

IndusInd Bank. CMP: INR345 TP: INR419 Buy

Goodyear India ACCUMULATE. Performance Highlights. CMP Target Price `326 `374. 1QCY2012 Result Update Tyres. Key financials

Godrej Consumer Products

CMP: INR615 TP: INR755(+23%) Buy Nominee Gold has some new competition on the block

CMP: INR350 TP: INR375 Downgrade to Neutral

Larsen & Toubro Ltd.

Matrimony.com Ltd BUY. Performance Update. Target Price `1,016. 4QFY2018 Result Update Cable. Historical share price chart.

Sohail Halai Alpesh Mehta

Sanjay Jain Pavas Pethia

Hindustan Media Ventures

BGR Energy. CMP: INR282 TP: INR253 Neutral

Garware Wall Ropes ACCUMULATE. Performance Highlights CMP. `550 Target Price `618. 2QFY2017 Result Update Textile. Investment Period 12 months

KEI Industries BUY. Performance Update. CMP Target Price `433 `508. 4QFY2018 Result Update Cable. Historical share price chart.

Canara Bank. CMP: INR419 TP: INR525 Buy

IDBI Bank. CMP: INR106 TP: INR121 Neutral

KPIT. 1QFY18 Result Update. Profitability does it again, looking for sustenance. Sector: Technology CMP: ` 130. Recommendation: Hold

No significant jump in retail electronic payments post demonetization

Idea Cellular. CMP: INR81 TP: INR Under Review

Amber Enterprises India Ltd

Maruti Suzuki India BUY. Performance Update. CMP `9,315 Target Price `10,820. 1QFY2019 Result Update Automobile. Historical share price chart

Godawari Power & Ispat

KDDL (KDDL IN) In expansion mode

Hindustan Unilever. Q1FY19 Result Update Maintaining strong volume trajectory on high base is the key. Sector: FMCG CMP: ` 1,644. Recommendation: HOLD

Consolidated Sales (Cr) Growth EBITDA (Cr) Margin PAT Margin EPS (Rs) P/E RoE

Jindal Stainless Hisar Ltd.: Q3FY18 Result Update

Blue Star Ltd BUY. Performance Update. CMP Target Price `703 `867. 1QFY2019 Result Update Cons. Durable. 3-year price chart.

BGR Energy. CMP: INR284 TP: INR296 Neutral

CMP: INR121 TP: INR193 Buy

Asian Granito BUY. Performance Highlights CMP. `270 Target Price `351. Outlook and valuation. 3QFY2017 Result Update Ceramics

Initiating Coverage. Uflex Ltd.

ITC Ltd. BUY CMP (Rs.) 304 Target (Rs.) 336 Potential Upside(%) 11% Valuation: Investment Rationale. For private circulation only

FY17 FY18 FY19E FY20E

BGR Energy. CMP: INR266 TP: INR230 Neutral

Maruti Suzuki India BUY. Performance Update. CMP `6,705 Target Price `8,552. 2QFY2019 Result Update Automobile. Historical share price chart

Kotak Mahindra Bank. CMP: INR495 TP: INR429 Neutral

Vadodara II PPA yet to be signed; TP revised upward to Rs126 on FY19x

CMP: INR320 TP: INR164(-49%) Sell Intending to exit UK execution is key!

Company Overview. Financial Performance

KEI Industries BUY. Performance Update. Target Price. 3QFY2018 Result Update Cable. Historical share price chart. Key Financials

CCL Products BUY. Performance Update. CMP Target Price `278 `360. 3QFY2018 Result Update Coffee. Historical share price chart.

ITC Ltd. RESULT UPDATE 27th October, 2017

Gillette India. Institutional Equities. 2QFY19 Result Update BUY. Marketing Investments Mask Improved Top-line Performance

Bata India BUY. Performance Update. CMP Target Price `842. 1QFY2019 Result Update Footwear. Historical share price chart.

Tata Elxsi Ltd. CMP: Rs. 1,192 Future Stallion.. BUY. Stock Data. Stock Performance (%) Company Update IT Software India Research

Jaiprakash Associates

NTPC CMP: INR169 TP: INR191 Buy

Transcription:

13 April 2018 EXIDE INDUSTRIES LTD CMP INR 237 Initiating Coverage (BUY) Target Price INR 294 Stock Details Industry Auto Parts & Equipment Bloomberg Code EXID:IN BSE Code 500086 Face Value (Rs.) 1.00 Market Cap. (Rs. mn) 202,300 52wk. Low/High (Adjusted) (Rs.) 249.70/192.85 Shareholding Pattern Dec '17 Promoter (%) 45.99 FII (%) 0.00 DII (%) 0.00 Public - Other (%) 54.01 No. of Share Outstanding (mn) 850.00 Valuation Summary FY 16A FY 17A FY 18P FY 19P P/E (x)* 16.84 25.05 23.00 24.00 EV/EBITDA (x) 16.92 20.12 10.48 3.64 P/BV (x) 2.78 4.00 4.09 3.97 *TTM for Current Year Based on Market Price as on 1 st Apr is taken for Each FY Key Financial Rs. Mn FY 16A FY 17A FY 18P FY 19P Net Sales 94,794 121,951 126,829 149,659 EBITDA 11,902 14,694 16,102 17,368 Net Profit 7,137 8,040 9,904 10,418 EPS (Rs.)* 08.4 09.5 11.7 12.3 *Un adjusted Key Ratios FY 16A FY 17A FY 18P FY 19P EBITDA Margin (%) 12.4 11.9 12.6 11.5 EBIT Margin (%) 10.5 10.1 11.1 10.2 Net Pro. Margin (%) 7.4 6.5 7.7 6.9 Debt/Equity (x) 1.94 1.93 1.75 1.55 RoNW (%) 17.5 17.2 18.7 17.6 RoCE (%) 5.8 5.7 6.4 6.5 One Year Price / Volume We recommend BUY on EXIDE INDUSTRIES LTD for a target of INR 294 - valuing the company at P/E 24x of FY19E Earning. INVESTMENT RATIONALE: Exide is India s most reliable brand and largest manufacturer of all types of batteries. Assailing sales promotion and extensive distribution network Enjoy well entrenched relationships with industry leaders across automotive and industrial segments. The largest lead acid storage battery manufacturer in India. Technological collaborations to result in innovative launches Strong relationship with customers and partners. Focus on innovation and consistent product launches. Extensive sales and distribution network and quality customer service. State-of-the-art manufacturing facilities at diversified locations. Only company with multi-locational manufacturing units spread across the country and equipped with advanced technology. VALUATIONS AND VIEW: Exide Industries Limited (Exide) is India s largest manufacturer of lead acid storage batteries and power storage solutions provider. Its unwavering emphasis on innovation, extensive geographic reach, strong relationship with distinguished customers and consistent technology upgradations has enabled to stay ahead of the curve. We value the business at 24x FY19E EPS and recommend a BUY rating on the stock with a target price of INR 294 per share. WEALTH DISCOVERY SECURITIES PVT. LTD. 1

RISK & CONCERNS: Foreign currency risk: Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Commodity price risks: The Company is affected by the price volatility of certain commodities. Its operating activity is manufacturing of batteries and therefore requires supply of lead. Equity price risks: The Company s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments / mutual funds. Credit risk: Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities. COMPANY BACKGROUND: Exide Industries Limited (Exide) is India s largest manufacturer of lead acid storage batteries and power storage solutions provider. From small emergency light batteries to huge submarine batteries, this brand enjoys a nationwide respect and recall. Its unwavering emphasis on innovation, extensive geographic reach, strong relationship with distinguished customers and consistent technology upgradations has enabled to stay ahead of the curve. It consistently remain at the forefront of international battery technology with the help of its collaborators Shin Kobe and Furukawa of Japan, Zhejiang Chaowei Chuangyuan Shiya of China, East Penn of the US and its subsidiary company Ecoult of Australia. It has nine factories strategically located all over India, of which seven factories are dedicated to batteries and the other two factories manufacture Home UPS systems. It manufacture a wide range of batteries for the automotive, power, telecom, infrastructure projects, computer industries, railways, mining, renewable energy and defence sectors, among others. It offer a comprehensive solution in areas of equipment selection, battery sizing, optimum room layout, installation, operation and maintenance. Its distribution network and service spectrum are continuously monitored and kept contemporary in line with changing market dynamics. Products: Automotive Batteries Industrial Batteries Inverter Batteries Solar Batteries Genset Batteries Submarine Batteries Home UPS Systems INDUSTRY OVERVIEW: The Indian auto-components industry has experienced healthy growth over the last few years. Some of the factors attributable to this include: a buoyant end-user market, improved consumer sentiment and return of adequate liquidity in the financial system. The auto-component industry of India has expanded by 14.3 per cent because of strong growth in the after-market sales to reach at a level of Rs 2.92 lakh crore (US$ 44.90 billion) in FY 2016-17. The auto-components industry accounts for almost seven per cent of India s GDP and employs as many as 25 million people. A stable government framework, increased purchasing power, large domestic market, and an ever increasing development in infrastructure have made India a favourable destination for investment. The Indian automotive aftermarket is expected to grow at a CAGR of 10.5 per cent and reach Rs 75,705 crore (US$ 13 billion) by the year 2019-20, according to the Automotive Component Manufacturers Association of India (ACMA). These estimates are in sync with the targets of the Automotive Mission Plan (AMP) 2016-26. WEALTH DISCOVERY SECURITIES PVT. LTD. 2

PEER COMPARISON Company CMP (Rs) P/E* Mcap (Rs Cr) Div Yld (%) NP Qtr (Rs Cr) Qtr Profit Var (%) Sales Qtr (Rs Cr) Qtr Sales Var (%) CMP/BV Motherson Sumi 343 30.5 72,127.2 0.39 561.7 2.88 14,397.9 35.94 7.38 Bosch 166 20.3 60,704.5 0.83 281.0 28.79 3,071.9 14.08 5.24 Sundaram Clayton 4,909 37.2 9,931.6 0.64 NaN NaN NaN NaN 5.31 TI Financial 658 21.9 12,337.8 0.19 157.2 50.72 886.7 26.04 3.87 Amara Raja Batt. 818 30.3 13,969.1 0.53 134.5 19.70 1,553.5 17.07 4.73 Sundram Fasten. 597 34.7 12,544.0 0.75 91.7 21.66 848.1 19.92 7.91 Exide Inds. 237.0 23.0 20,145.0 1.00 154.3 1.81 2,276.5 32.74 4.00 *TTM FINANCIAL OVERVIEW Q4 FY17Performance Highlight (in Million) 4Q FY16 1Q FY17 2Q FY17 3Q FY17 4Q FY17 YoY (%) QoQ (%) Revenue 19,495.60 22,133.20 23,763.60 23,713.20 22,765.40 16.77% -4.00% Other Income 350.2 336.3 132.1 138.7 110.5 Total Income 19,845.80 22,469.50 23,895.70 23,851.90 22,875.90 15.27% -4.09% Expenditure -17,199.30-19,636.50-20,536.50-21,193.90-19,948.90 As a % of Sales 88.22% 88.72% 86.42% 89.38% 87.63% Interest -46.1 -- -15.6-21.2-9.3-79.83% -56.13% PBDT 2600.4 2833 3359.2 2658 2927 As a % of Sales 13.34% 12.80% 14.14% 11.21% 12.86% Depreciation -521.8-544.4-563 -596.7-625.4 PBT 2078.6 2288.6 2796.2 2061.3 2301.6 10.73% 11.66% As a % of Sales 10.66% 10.34% 11.77% 8.69% 10.11% Tax -563.7-640.8-906.2-706.1-758.9 34.63% 7.48% Net Profit 1514.9 1647.8 1890 1355.2 1542.7 1.84% 13.84% As a % of Sales 7.77% 7.44% 7.95% 5.71% 6.78% Equity 850 850 -- 850 850 0.00% 0.00% EPS (Rs) 1.78 1.94 2.22 1.6 1.82 2.25% 13.75% CEPS (Rs) 2.4 2.58 -- 2.3 2.55 OPM % 13.57 12.8 14.14 11.21 12.86 NPM % 7.77 7.44 7.95 5.71 6.78 WEALTH DISCOVERY SECURITIES PVT. LTD. 3

Income Statement (Consolidated) Y/E Mar (Rs mn) FY 14A FY 15A FY 16A FY 17A FY 18E FY 19P FY 20P Net Sales 83,089 95,350 94,794 121,951 126,829 149,659 158,638 Other Operating Income 708 952 1,351 1,027 1,218 1,505 1,629 Expenditure 74,434 85,980 84,243 108,285 111,946 133,796 139,405 EBITDA 9,363 10,321 11,902 14,694 16,102 17,368 20,862 Depreciation 1,420 1,553 1,800 2,259 1,887 1,890 1,893 EBIT 7,943 8,767 10,102 12,434 14,214 15,478 18,969 Interest Expenses 76 32 17 1,463 773 1,355 1,202 PBT 7,867 8,735 10,086 10,971 13,442 14,123 17,767 Tax 2,406 2,572 2,922 2,931 3,538 3,705 4,600 Other Income - - - - - - - Net Income Before Adjustment 5,462 6,163 7,164 8,040 9,904 10,418 13,167 Minority Int./Income from Assoc. 15 18 27 - - - - Adjusted PAT 5,447 6,145 7,137 8,040 9,904 10,418 13,167 Balance Sheet (Consolidated) Y/E Mar (Rs mn) FY 14A FY 15A FY 16A FY 17A FY 18E FY 19P FY 20P Equity share capita 850 850 850 850 850 850 850 Reserves & surplus 33,747 37,560 42,454 49,471 54,795 62,065 71,253 Misc Expenditure - - - - - - - Net worth 34,597 38,410 43,304 50,321 55,645 62,915 72,103 Minority Interest 117 128 146 158 118 122 126 Share Application Money - - - - - - - Loan Funds 66,838 76,266 84,134 97,347 97,349 97,347 97,345 Net deferred tax liability 1,118 1,315 1,305 1,561 1,561 1,561 1,561 Other Long-term Liabilities 59 55 53 1,665 1,731 2,043 2,165 Long-term Provisions 269 348 415 526 547 645 684 Total Liabilities 102,997 116,523 129,358 151,579 156,952 164,634 173,986 Net block 17,488 18,958 21,840 24,276 22,331 20,631 18,737 Investment, Loan & Adv. 72,156 82,712 89,647 105,024 153,752 224,716 330,621 Total Current Assets 35,294 37,204 41,773 48,353 203,405 339,730 441,154 Current Liabilities & Provisions 21,942 22,352 23,903 26,075 222,537 420,445 616,528 Net Current Assets 13,353 14,852 17,870 22,278 (19,132) (80,715) (175,374) Total Assets 102,997 116,523 129,358 151,579 156,952 164,634 173,986 Cash Flow (Consolidated) Y/E Mar (Rs mn) FY 17A FY 18E FY 19P FY 20P Operating Cash Flow 9,986 10,801 8,728 14,404 Cash Flow from Investments (7,871) (48,844) (71,310) (106,059) Cash Flow from Financing (1,819) 191,160 190,438 189,801 Net Changes in Cash 295 153,118 127,856 98,147 Opening Cash 2,940 3,235 156,353 284,209 Closing Cash Balance 3,235 156,353 284,209 382,355 WEALTH DISCOVERY SECURITIES PVT. LTD. 4

Disclaimer: This document has been prepared by Wealth Discovery Securities Private Limited (hereinafter referred to as WD) to provide information about the company (ies) and/sector(s), if any, covered in the report and may be distributed by it and/or its affiliated company (ies). This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an offer, invitation or inducement to invest in securities or other investments and Wealth Discovery Securities Private Limited (hereinafter referred as WD) is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider whether it is suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur. WD generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. Additionally, WD generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders, and other professionals or affiliates may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing among other things, may give rise to real or potential conflicts of interest. WD and its affiliated company(ies), their directors and employees and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the affiliates of WD even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamental analysis. In addition WD has different business segments / Divisions with independent research separated by Chinese walls catering to different set of customers having various objectives, risk profiles, investment horizon, etc., and therefore may at times have different contrary views on stocks sectors and markets. Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt WD or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold WD or any of its affiliates or employees responsible for any such misuse and further agrees to hold WD 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 information contained herein is based on publicly available data or other sources believed to be reliable. Any statements contained in this report attributed to a third party represent WD's interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation has not been reviewed by the third party. This Report is not intended to be a complete statement or summary of the securities, markets or developments referred to in the document. While we would endeavor to update the information herein on reasonable basis, WD and/or its affiliates are under no obligation to update the information. Also there may be regulatory, compliance, or other reasons that may prevent WD and/or its affiliates from doing so. WD or any of its affiliates or employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. WD or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and no infringement. The recipients of this report should rely on their own investigations. WD and its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. Subject Company may have been a client of WD or its associates during twelve months preceding the date of distribution of the research report WD and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities mentioned in this report. To enhance transparency, WD has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report. 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. The research analysts, strategists, or research associates principally responsible for preparation of WD research receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues Disclosure of Interest Statement 1.Analyst ownership of the stocks mentioned above 2.Served as an officer, director or employee Exide Industries Ltd. No No Regional Disclosures (outside India) This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject WD & its group companies to registration or licensing requirements within such jurisdictions. WEALTH DISCOVERY SECURITIES PVT. LTD. 5

Head Office Wealth Discovery Securities Pvt. Ltd. 1206, 12th Floor, Kailash Building K.G. Marg. Connaught Place New Delhi-110001 Telephone: 91 +11-43444-666 91 +11-43444-623 Email: info@wealthdiscovery.in Website: http://www.wealthdiscovery.in WEALTH DISCOVERY SECURITIES PVT. LTD. 6