ICICI Direct's research report on Exide Industries
Exide Industries (EIL) is a part of the duopolistic organised Indian lead acid battery market with a presence across automotive & industrial applications. Segment mix: -automotive sales~75% & industrial application ~25% • Channel exposure to replacement/OEMs is at ~60%, ~40%, respectively • Within its automobile segment sales, it derives ~60% of sales from OEMs.
Outlook
We upgrade the stock from HOLD to BUY following a strong commitment to the Li-On technology in battery domain (setting up cell manufacturing unit in India with initial capacity of 6 GWh) and inexpensive valuations. Introducing FY25E, we value EIL at SOTP-based TP of Rs 210 (Rs161 for battery business at 15x average FY24-25E EPS, Rs 49 for invests.).
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