Exide Industries | Hold Exide Industries, target price Rs 200: Emkay Research

Emkay Research has a hold call on Exide Industries with a target price of Rs 200, for a duration of 12 months. The current market price of Exide Industries is Rs 178.9.

Exide Industries Ltd, incorporated in the year 1947, is a Mid Cap company with a market cap of Rs 15261.75 Crore, operating in Auto Ancillaries sector.

Exide Industries’ key Products/Revenue Segments include Batteries (Storage), Export Incentives, Other Operating Revenue and Scrap for the year ending 31-Mar-2020.

Stock Score, Analysts’ Ratings & Recommendations

EARNINGS

FUNDAMENTAL

RELATIVE VALUATION

RISK

PRICE MOMENTUM

Stock score of Exide Industries Ltd moved down by 1 in 3 months on a 10-point scale.

View Latest Stock Report

Stock Analysis

Stock score of Exide Industries Ltd is 8 on a scale of 10. View Stock Analysis »


Investment Rationale

Emkay

Research reduces FY22/23 EPS forecast by 2 per cent each to Rs 10.1/Rs11.7 on a marginal reduction in revenue assumptions. It introduces FY24E EPS of Rs 13.4, factoring in revenue growth of 10 per cent and EBITDA margin of 13.8 per cent. Margin pressures remain due to cost increases and adverse mix. Lead prices have increased steeply by around 20 per cent in the last three quarters. In addition, the product mix is likely to turn adverse with the normalization of replacement segment growth to single-digits from H2FY22. Emkay advises to retain hold rating with a target price of Rs 200 (Rs 204 earlier), based on 15x FY23E EPS and the value of the insurance business at Rs 24/share. According to Emkay, key risks include, higher-than-expected demand in Automotive and Industrial segments and benign currency/commodity prices.

Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 4575.49 Crore, up 8.37 per cent from last quarter’s Total Income of Rs 4222.03 Crore and up 31.38 per cent from last year same quarter’s Total Income of Rs 3482.69 Crore. Company has reported net profit after tax of Rs 320.01 Crore in the latest quarter.

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