Motilal Oswal's research report on Exide
EXID’s 4QFY24 operating performance beat our estimates, mainly led by an improved mix and lower RM costs. The company noted that all the verticals saw healthy growth, with the industrial division growing in double digits on a high base. We raise our FY25E/FY26E EPS by ~10%/13% to factor in an improved demand environment and a reduction in input costs. However, while the market seems to be upbeat about EXID’s lithium ion foray, we remain circumspect about the returns from the business. After the recent run-up, the stock at ~29x/25x FY25E/FY26E EPS appears fairly valued. We, hence, maintain Neutral rating on the stock with a revised TP of INR430 (based on 20x FY26E EPS + INR52/share for HDFC Life stake).
Outlook
We, hence, maintain Neutral rating on the stock with a revised TP of INR430 (based on 20x FY26E EPS + INR52/share for HDFC Life stake).
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