Accumulate Exide Industries; target of Rs 318: Dolat Capital

Dolat Capital's research report onExide Industries

Exide Industries (EXID) posted good set of numbers with top line growth of 31.8% YoY. Margin improvement did not follow through due to increase in lead prices and adverse forex movement. EXID has been consistently showing good top line growth since last 4 quarters but is a miss on margins primarily due to higher raw material cost.

Outlook

Considering the operating efficiencies, we believe that Exide should be able to expand on these margins in coming quarters. Reiterate our Accumulate recommendation with a target price of Rs 318. We value the stock at 24x FY20E EPS (` 298) and ` 20 for stake in insurance venture.

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