Exide Industries Ltd. has given a 37% return on a year on year basis as the Auto Ancillary Stocks have rallied on recovery of the Auto sales in the current financial year 2014-15. We had published the analysis on the stock at Rs.124 per share and the current market price of the stock is at Rs.170 per share.
Amara Raja Batteires Ltd. has given a 109% return on a year on year basis as the Auto Ancillary Stocks have rallied on recovery of the Auto sales in the current financial year 2014-15. We had published the analysis on the stock at Rs.311 per share and the current market price of the stock is at Rs.624 per share.
Battery is an auto component and they are used in all segments of the automobile industry from Commercial Vehicles to Three Wheelers. Typically a Lead Acid Battery is used in the automobile as a component that is used in providing electricity for certain purposes in the vehicle. Exide Industries is the largest manufacturer and Amara Raja Batteries is the second largest manufacturer of batteries in India. The companies cater to the OEMs market, replacement market and the export market for batteries. Exide Industries and Amara Raja Batteries control 90% of the organized market in India.
Exide is the first and foremost battery company in India that started operations in the 1880s when the automobile battery as a product was under development. Exide is engaged in the manufacturing of lead acid storage batteries. The company is engaged in manufacturing storage batteries from 2.5 ampere-hour to 20,400 ampere-hour range. The company has products in the automotive batteries segment, industrial batteries segment and submarine batteries segment. It has a distribution network of 4000 outlets, supported by 4 regional offices and 28 branch offices. The Company has seven battery manufacturing facilities located across the country with three in Maharashtra, two in West Bengal, one in Tamil Nadu and one in Haryana. The company is one of the largest manufacturers of Lead Acid Storage Batteries in the World, marketing its products to Western Europe, Middle East, Africa, South America, SAARC and South East Asian Countries. In India, the company markets the products under Exide, SF, Sonic and Standard Furukawa brands and supplies to Passenger Car OEMs and Two Wheeler OEMs. In the international market products are sold under Dynex, Index & Sonic brands. Exide is the most preferred supplier of batteries to most of the OEMs in India and is the only supplier of Lithium ion batteries for electrical vehicles to Mahindra and Mahindra that acquired Reva. Exide has four wheeler products, Exide Matrix, Exide ATB, Exide Max, Exide Express, Exide Jai Kisan and Exide Eko and two wheeler products viz. Exide Extreme, Exide VRLA, Exide Xpack, Exide Bikerz, Exide Zoom and Exide Electrica.
The Company reported Sales of Rs.6372 crores with an EBITDA of Rs.859 crores and a net profit of Rs.549 crores in FY 2012-13. The EBITDA margin was 13.5% and the net profit margin was 8.6%. The Earnings per share was reported at Rs.6.46 and the Return on Equity was reported at 19.1% for FY 2012-13. The company has shown a CAGR of 14% in revenues and a CAGR of 16% in net profit from FY 2007-08 to FY 2012-13.
The company had zero debt at the end of FY 2012-13 and the current market capitalization is Rs.10,500 crores with a Price to Earnings multiple of 19.13 at Rs.124 per share. The Price to Book Value is Rs.40.28 and the Market Capitalization to Sales ratio is 1.64. The company has announced an interim dividend of 110% per share for a face value of Rs.1 in the month of October 2013. The Promoters have a shareholding of 46% and the FIIs have a shareholding of 17.5% in the company.
Amara Raja Batteries
Amara Raja Batteries Ltd is the largest manufacturer of Standby Valve Regulated Lead Acid (VRLA) batteries in India. The company is in the business of manufacturing batteries for Industrial segment, Automobile segment and Power segment. The manufacturing facility is located at Tirupati in Andhra Pradesh. The company has products in the Automotive category, Amaron PRO, Amaron GO, Amaron FRESH, Amaron BLACK, Amaron HI-WAY and Amaron HARVEST. The Company supplies automotive batteries to OEMs, Ashok Leyland, Fiat, General Motors, Hindustan Motors, Honda, Hyundai, Mahindra & Mahindra, Maruti and Tata Motors. The company is an exclusive supplier to Daimler Chrysler, Ford and Maruti-Swift platform.
The Company reported Sales of Rs.2981 crores with an EBITDA of Rs.471 crores and a net profit of Rs.287 crores in FY 2012-13. The EBITDA margin was 15.8% and the net profit margin was 9.6%. The Earnings per share was reported at Rs.16.78 and the Return on Equity was reported at 30.4% for FY 2012-13. The company has shown a CAGR of 22% in revenues and a CAGR of 25% in net profit from FY 2007-08 to FY 2012-13.
The company had debt to equity ratio of 0.1 at the end of FY 2012-13 and the current market capitalization is Rs.5316 crores with a Price to Earnings multiple of 18.55 at Rs.311 per share. The Price to Book Value is Rs.62.05 and the Market Capitalization to Sales ratio is 1.78. The company has announced an interim dividend of 252% per share for a face value of Rs.1 in the month of August 2013. The Promoters have a shareholding of 52% and the FIIs have a shareholding of 11% in the company.