Associate Partners
Get App


Associate Partners

Last Updated : Feb 11, 2019 05:41 PM IST | Source:

Hold Exide Industries; target of Rs 235: ICICI Direct

ICICI Direct recommended hold rating on Exide Industries with a target price of Rs 235 in its research report dated February 05, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Exide Industries

Exide Industries (EIL) reported a muted Q3FY19 performance Net sales for the quarter were at Rs 2,497 crore, up 9.7% YoY The management commentary suggests volume growth was seen across verticals i.e. automotive, motorcycle, UPS and solar battery EBITDA in Q3FY19 was at Rs 312 crore, up 10.6% YoY with corresponding EBITDA margins at 12.5%, up 10 bps Margin improvement was limited primarily due to higher other expenses. The only silver lining was gross margin expansion of nearly 210 bps on a QoQ basis Lead prices in Q3FY19 were at Rs 143/kg, down 12% YoY & 4% QoQ Consequent PAT for the quarter came in at Rs 155 crore, up 7.8% YoY.


However, the company will bear the brunt of muted auto sales outlook thereby limiting its growth prospects the consequent valuation multiples. Going forward, over FY18-20E, we expect sales & PAT to grow at a CAGR of 10.4% & 11.2%, respectively. We value EIL at Rs 235 on SOTP basis; Rs 195 i.e. 20x FY20E EPS of Rs 9.8/share (base business) + Rs 36 i.e. 1.2x embedded value of insurance business + Rs 4 i.e. 3.3x P/BV on smelting business. We assign HOLD recommendation.

For all recommendations report, click here

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

First Published on Feb 11, 2019 05:41 pm
More From
Follow us on
Available On
PCI DSS Compliant