Moneycontrol PRO

Buy Exide; target of Rs 190: Motilal Oswal

Motilal Oswal is bullish on Exide recommended buy rating on the stock with a target price of Rs 190 in its research report dated May 05, 2022.

May 07, 2022 / 01:33 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's research report on Exide


EXID's performance was impacted by higher RM cost inflation, but the same was partially offset by operating leverage. We expect a sustained recovery, led by a recovery in OEMs and aftermarket growth, with a shift to the organized from the unorganized segment. The company is setting up a greenfield multi-gigawatt hour Li-ion manufacturing facility, based on its technical agreement with SVOLT, despite failing to secure a PLI incentive. We maintain our EPS estimates, but have reduced our target multiple to 12x from 14x to account for the increasing threat posed by EVs and lack of PLI incentive in its Li-ion cell manufacturing facility, which will put it at a relative disadvantage.


Outlook


The stock trades at 14x/11.5x FY23E/FY24E standalone EPS. Valuing it ~12x standalone Mar'24E EPS and INR34/share for its stake in HDFCLIFE (at a 40% holding company discount), we maintain our Buy rating with a TP of ~INR190 per share.


For all recommendations report, click here

Close

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: May 7, 2022 01:33 pm
Sections
ISO 27001 - BSI Assurance Mark