Hold Exide Industries target of Rs 456: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Exide Industries with a target price of Rs 456 in its research report dated November 11, 2024.

Broker Research

November 12, 2024 / 12:41 IST

hold

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Exide Industries

EXID's standalone revenue increased by 3.9% YoY, coming in 4.1% lower than street estimates. Gross profit grew by 5.4% YoY, while gross margin improved by 43bps YoY to 31.5%, aided by stable RM prices and pricing action. EBITDA remained flat, while margin contracted by 43bps YoY to 11.3%, impacted by higher other expenses, which stood at 13.9% as a percentage of sales compared to 13.1% in Q2FY24. PAT increased by 3.8% YoY. Overall growth was subdued due to high channel inventories for OEMs, which impacted their sales. Demand outlook from the OEMs segment is mixed as OEMs look to rationalize their production to reduce the inventory at dealerships, which may impact EXID’s volume and revenue growth for FY25.

Outlook

Factoring this, we reduce our estimates mainly for FY25 which is translating to a reduction of 7-15% for the forecast period. Replacement demand and industrial division outlook remains optimistic, while commencement of the LAB plant shall support the next leg of growth for the company. We retain “Hold” rating with a TP of Rs456 (previous Rs520), valuing its core business at 23x and its HDFC Life stake at Rs51/share.

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