Accumulate Exide Industries; target of Rs 295: Prabhudas Lilladher

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26 Aug, 2025 12:21

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EXIDE industries’ (EXID) core segment has seen strong growth over the last two years due to pent up demand, and we expect it to grow at c9% CAGR over FY23-26E (ex li-ion battery revenue) with growth to pick-up from 2HFY24. Battery space is undergoing huge technological shift and EXID is investing Rs. 60bn in phased manner in 12GWh lithium ion cell plant to leverage future demand from electric vehicles (EV) segment. However, rapid shift in technology & increased competition will require agility with high investments. We believe that EXID is well placed to benefit for medium term given its aggressive product and network expansion strategy along with investment in new technologies and strong traction in the industrial segment. Automotive segment is expected to continue with its recovery led by 1) leadership position in growing OEM & after market segment, 2) launch of new & advanced products for new applications and 3) expansion of network in Indian after-market and export markets. Industrial segment is expected to benefit from 1) pick-up in demand led by government and private capex, 2) increased investment in renewable power, 3) good traction in projects vertical like railways, telecom, infrastructure, etc. and grow faster than the automotive segment.

We resume coverage with an “Accumulate” rating and SoTP of Rs.295 at 15x Sep-2025 EPS (currently trading at c21x PE on FY24E EPS).

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