Motilal Oswal's research report on Exide
Exide's 4QFY25 performance was in line with our estimates, with PAT declining 10% YoY to INR2.5b. Margin contracted 170bp YoY to 11.2% due to the rise in input costs and write-offs taken in the quarter. Exide has implemented price hikes to offset the recent cost increase. We have maintained our estimates. Given the significant imminent risk to its core business, Exide has forayed into the manufacturing of lithium-ion cells in partnership with S-Volt, with a total investment of INR60b across two phases. While the market appears to be upbeat on Exide’s lithium-ion foray, we remain cautious of the returns from the same.
Outlook
Hence, we reiterate our Neutral rating on the stock with a revised TP of INR368 (based on 20x FY27E EPS).
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