Exide Industries is well known company and already many have written expert threads over here. Few important points to take a note as per May-2023 con-call:
- There is a general pessimism on terminal value of lead acid battery business after EV. But management clarified that “Every EV requires 1 auxiliary battery, which is lead acid battery”.
- Though company is not beneficiary of PLI scheme, in India seems they are early adopters to Lithium Iron cell technology and ahead of competitors as of now.
Note – Company corrected its historical diworsification mistake by selling off insurance business to HDFC Life Insurance. So corporate action seems to be good.
Question – Does this company is showing optionality element, as seems its current business may not get disturbed but company may also accelerate in new technology? Valuations also seems to be reasonable.
Disclaimer- I’ve taken small tracking position.
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