Motilal Oswal's research report on Exide
Exide (EXID)’s 1QFY24 revenue growth was in line with expectations, but margins were below est. as gross margins were affected by a weaker product mix. Going forward, demand is expected to normalize and lead prices are stable, which should drive earnings. EXID’s venture into li-ion cell manufacturing is expected to commence in FY26.
Outlook
We lower our FY24E/FY25E EPS by 7%/5% due to a weaker product mix and sustained higher lead prices. We reiterate our BUY rating on the stock with a TP of INR290 (based on 14x Sep’25E S/A EPS + INR54/sh value from HDFC Life stake). We are currently not ascribing any value to its li-ion battery/cell manufacturing foray.
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