Exide Industries may slip in double digits: SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "Exide Industries has been a big disappointment. If I just take the scenario maybe for last three years and if you hear the management commentary they have been giving hopes that things are looking dull maybe for this quarter, but when you compare that with the Amara Raja Batteries, why that company is performing so well and had been doing consistently better every quarter and that has been well received by the market as well."

"Coming specifically on these results of Exide, 30 percent drop on the EBITDA and maybe 32-33 percent drop on the PAT has come really as a shocker. You cannot complaint for the lead prices. They have all been very stagnant. You cannot complaint that my replacement market has gone. You cannot complaint that my heavy commercial vehicle segment has not performed well. Market is not looking for the excuses," he added."

"I remember that maybe when the first quarter results came in or maybe the second quarter results came in management gave the commentary which indicated that H2 will be better than H1 and if you have the Q2, I am taking sequential, I am not taking on a Y-o-Y basis, if you take on Q-o-Q basis a drop of 30 percent on EBITDA, about 32-33 percent on the PAT is definitely cause of concern and on top of it because on the hopes that Amara Raja is doing very well, management has given a good commentary or good outlook people have gone long. If you recall huge long positions have got created maybe because of the technical call."

"If you cannot have the clear-cut guidance from the management I do not think that one can really trust the company hereafter and there is no reason. Apart from the FII accumulation yesterday we have seen 50 lakh shares got delivered in the cash segments. Still there are open positions of about 85 lakh. So the things are looking weak technically, but taking a fundamental call I do not think that there is any reason. People will start shifting their focus again back on Amara Raja and I expect that prices can fall in double digit maybe for the stock in the near-term," Tulsian said.