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Exide Industries nearly doubled net profit to Rs 149.67 crore for the quarter ended September as input costs fell and the company expanded its distribution network. Exide’s revenue grew a modest 5.54% to Rs 950.31 crore and the company has proposed a payout of Rs 0.60 per share.

(The Hindu Business Line Aug 3 2008) Investors with a two-three year perspective can consider buying shares in Exide Industries. Until the market correction in January, the stock had moved up sharply, delivering a 75 per cent return in a span of six months. From a 52-week high of Rs 90 in mid-January, the stock has declined to Rs 68 currently. We consider this fall a good entry point as the company’s earnings prospects remain intact. The potential for high growth in the telecom and UPS battery segments, capacity expansion and the rollout of new models by passenger carmakers (indicating higher volumes) lend a positive outlook to the earnings for Exide. Besides, the company’s focus on increasing exports of higher-margin industrial batteries and its acquisition of two lead smelting units to combat rising international lead prices and improve margins, inspire confidence. At the current market price of Rs 68, the stock trades at a PE of around 20 times trailing 12-month earnings. Business E...