Buy Exide Industries target of Rs 227: Prabhudas Lilladher
Prabhudas Lilladher is bullish on Exide Industries has recommended buy rating on the stock with a target price of Rs 227 in its research report dated April 29, 2021.
June 10, 2021 / 10:44 AM IST
Prabhudas Lilladher's research report on Exide Industries
EXID’s 4QFY21 results exceeded expectations as EBITDA/Adj PAT came 8- 12% higher to PLe, led by effective cost control. While there was a significant pick up in automotive segment (both OE and replacement), industrial and UPS division too started picking up. Going forward we believe stronger growth in replacement segment (~65% of industry) to continue coupled with new product launches across segments. Consequently, operating leverage and cost control to offset lead inflation keeping FY22 margins stable and expanding ~100bp in FY23.
We maintain ‘Buy’ with SoTP based price target of Rs227 (unchanged), based on 16x Mar’23E core EPS plus Rs16 for insurance subsidiary. Stock is trading at 16.8x/13.4x for FY22/23 core EPS.
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