Shares of this multibagger EV stock are in focus on Wednesday after the company invested approximately Rs 75 crores in its wholly-owned subsidiary engaged in the manufacturing process of Lithium-ion Battery cells. In the past month, the company’s stock rose nearly 12 percent for its holders.
With a market capitalization of Rs 39,000 crores, the stocks of Exide Industries Limited started their trading session on Wednesday at Rs 464.55 and currently trades at Rs 458.85, a flat movement compared to the previous close of Rs 461 apiece.
According to the recent regulatory filing with the Exchanges, the company intimated that it has further invested approximately Rs 75 crores in “Exide Energy Solutions Limited” (EESL), a wholly-owned subsidiary of Exide Industries Limited, by way of subscription of the former’s equity share capital via ‘rights issue’.
Around 2.08 crore equity shares of EESL, each of face value of Rs 10 each at a premium of Rs 26 on a rights basis, were subscribed by Exide Industries Limited.
With the abovementioned update, the company’s total investment in the subsidiary stands at around Rs 2,378 crores. Pursuant to the acquisition, there is no change in the shareholding percentage of the Company in EESL.
Exide Energy Solutions Limited is engaged in manufacturing battery cells of advanced chemistry and form factor as well as manufacturing, assembling, and selling battery modules, battery packs, and other related activities thereto.
During the recent financial quarters, the company’s basic business indicators, viz, its operating profits as well as after-tax profits, reported movements in opposing directions.
The former, on one end, moved up from Rs 3,979.83 crores during Q3FY24 to Rs 4,172.9 crores during Q4FY24, and the latter, on the other end, shifted down from Rs 202.69 crores to Rs 185.7 crores.
According to the latest financial reports, the company’s ratio analysis portrays the return ratios, i.e., the return on equity (RoE) as well as the return on capital employed (RoCE), reported at levels of 8 percent and 11 percent respectively.
Keeping a purview of the last year, the company’s stock delivered multibagger returns of around 140 percent to its stakeholders, viz, if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.40 lakhs.
Founded in 1947, Exide Industries Limited is an India-based company supplying equipment and aftermarket parts of batteries for automotive companies operating out of India, including Hyundai, Honda, Toyota, etc. The company also provides batteries to telecommunications, infrastructure, defence, and many other sectors.
Written by Amit Madnani
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