Prabhudas Lilladher's research report on Exide Industries
EXID’s 4QFY21 results exceeded expectations as EBITDA/Adj PAT came 8- 12% higher to PLe, led by effective cost control. While there was a significant pick up in automotive segment (both OE and replacement), industrial and UPS division too started picking up. Going forward we believe stronger growth in replacement segment (~65% of industry) to continue coupled with new product launches across segments. Consequently, operating leverage and cost control to offset lead inflation keeping FY22 margins stable and expanding ~100bp in FY23.
Outlook
We maintain ‘Buy’ with SoTP based price target of Rs227 (unchanged), based on 16x Mar’23E core EPS plus Rs16 for insurance subsidiary. Stock is trading at 16.8x/13.4x for FY22/23 core EPS.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More