Sharekhan's research report on Exide Industries
In Q4FY2022, Exide EBITDA and adjusted PAT came below street’s expectations by 8.8% and 4.8%, respectively, largely driven by input cost inflation coupled with high fuel and freight costs. Exide is expected to benefit from recovery in automotive demand, improving share of replacement sales, and rising sales of industrial batteries. Exide formed a new subsidiary to set up a multi-gigawatt lithium-ion cell manufacturing plant in technical collaboration with SVOLT Energy Solutions.
We have cut our estimates to build margin pressure, but valuations are attractive at P/E multiple of 9.2x and EV/EBITDA multiple of 5.6x its FY2024E estimates.
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