Hello investors,
Little bit new to this space.
While I know that the company is very pro Li-ion batteries and has been investing heavily in the EESL plant, I recently came across a report which suggest that the price of Li-ion batteries have fallen significantly.
source: Navuma Research
While the production has not stared for EESL, my view here is the inventory realizations have gone down significantly for batteries. Does that pose a threat to the companies margins? There is over supply in the market for these kind of batteries from Chinese players which is leading to such low realization.
My concern is oversupply as anti-thesis has started to playout, so should be concerned in the future margins from the new capacity.
Disc: I am invested in Exide since 2022 (at 190s levels)
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