Exide Industries($EXIDEIND)
Exide (a part of Rajan Raheja group) is the largest battery company in India having a diversified revenue stream and has a large presence in the automotive batteries and home inverter segment apart from its presence in the telecom, railway batteries segment.
Exide has a strong balance sheet with net cash on the books and average core RoCE of 38% over the last 10 years. Reported RoCE is lower at 18% due to investments in insurance business.
GST implementation could accelerate shift from unorganized to organized segment in which Exide is a major player. This gain in market share could drive faster revenue growth offering operating leverage. Recent traction in medium and heavy commercial vehicle segment in the recent years presents a big replacement market opportunity in subsequent years.' -