Exide Industries Ltd. share price target

Revenue growth surprises positively but PAT hit by exceptional item Exide Posted positive surprise in revenue growth driven by both better volumes and sharp jump in realizations in spite of prices getting corrected after GST. Net sales rose 23% to 23,713mn from 19,233mn which is highest sales growth posted by the company last 8 quarters, this increase has be driven by 8-9% increase in price which Exide had undertaken in replacement market. We internal estimate that exide has been able to post mid to high single digit volume growth(6-7%) this quarter primarily in UPS, Telecom and Auto OEM space. We expect Exide to continue to post strong double digit growth in sales in FY18 and FY19 at 91,879mn and 107,065mn largely driven by higher realizations. The Profit after tax for the company fell to 1355mn compared to 1813mn posting decline of 25% on...

While Exide's net sales at Rs23.7 bn were ahead of our expectation; however, EBITDA margin was 339bps below our forecast at 12.5%. EBITDA at Rs3.5 bn (+1.1% YoY, -8.8% QoQ) was 16% below our estimate. Adjusted net profit was 14% below our forecast at Rs1.7 bn (-2.2% YoY, -6.2% QoQ). The company reported an exceptional item of Rs418 mn related to settlement of disputes with Exide Technologies, USA. As per the Management, volumes in automotive and motorcycle batteries have seen significant improvements while telecom and other infrastructure segments...

ICICI Securities Ltd | Retail Equity Research Exide Industries (EIL) reported strong topline growth of 22.9% YoY to | 2,371 crore vs. our estimate of | 2,158 crore, as automotive demand improved significantly while demand from the telecom & other infrastructure segment were encouraging during Q2FY18 EBITDA margins contracted 270 bps YoY & 294 bps QoQ to 12.5% vs. our estimate of 13.8%. Its operating margin were impacted mainly due to gross margin contraction of 586 bps YoY & 406 bps...

also aided growth. Spot lead price rose 7.6% QoQ (+19% YoY) to INR149.6 per kg. In October, lead price grew 21% YoY, and 9.5% v/s 1QFY18. EBITDA margin at nine-quarter low led by inflation and mix impact: EBITDA margin contracted 250bp YoY (-290bp QoQ) to 12.5% (est. of 15.1%), largely led by lead inflation and product mix impact (higher proportion of OE sales in Automotive). However, the decline in staff cost and other expenses by 60bp YoY and 260bp YoY, respectively, restricted further margin contraction. EXID reported an exceptional item of INR0.4b toward the settlement of the...

over its rivals thanks to its scale, the strength of its brand, its technology tie-ups with global battery producers, and its extensive domestic distribution network. Drivers remain intact, growth trajectory to set in from FY 18 Exide is well placed for a new start post quite a few subdued years as it has improved its...

As per the management, the growth in replacement batteries for Automotive and Motorcycle batteries continues to remain encouraging; at the same time demand for home UPS batteries remains weak. During the quarter, the Company has witnessed improvement in the growth in its infrastructure batteries. However rising lead prices...

Exide Industries continues to outperform on revenues front for sixth quarter in a row with net sales at 21,209 vs 20,081mn. This growth has been driven by stronger demand for 2W batteries while the inverter and the UPS segment faced demand decline on account of inventory adjustment in retail channel. Exide had undertaken price increase across segment in order of 7-8% from December to may in order to pass on the raw material price increase. Prices of lead have increased from 1990 to 2300$/ton in last six months. Adjusting to price increase Exide has posted negative volume growth for this quarter. We expect strong volume recovery in H2 of FY18 and FY19 due to market share loss getting arrested and incremental gains from unorganized players. We maintain of revenue estimates at...

We maintain Buy on the stock with TP Rs 262, based on 19x 19E EPS + 2x BV (Rs 37) for the insurance business stake. EXID posted strong 1Q numbers. Net revenue at Rs 21bn(+5% YoY, 6%QoQ), led by strong traction in automotive batteries sales, offset by subdued UPS batteries sales. EBIDTA at Rs. 3.24bn with margin 15.4% (+217bps QoQ) was above expectations, owing to benefit of operating leverage. However, APAT stood at Rs 1.89bn, benefit of higher OPM was slightly offset by lower other income (-38% QoQ)

ICICI Securities Ltd | Retail Equity Research Exide Industries' (EIL) reported mixed set of Q1FY18 numbers. Revenues increased 4.6% YoY to |2,103 crore, below our estimate of |2,286 crore. According to the management, 4-W & 2-W battery continued with its growth momentum, however Home UPS battery segment remained subdued during the quarter. EBITDA margins contracted 24 bps YoY, however expanded 217 bps QoQ to 15.4%, vs. our estimate of 14.1%. Margin expansion on QoQ...

Estimates broadly unchanged: We have broadly maintained our estimates for FY18/19. We expect EBITDA to increase 18.3%/15.2% in FY18E/FY19E. Also, our net profit forecasts are higher by 12.3%/16.2% for FY18E/FY19E, respectively. Outlook and valuation: We believe that Exide's focus on technology upgradation to lower costs, improvement in after-sales service and timely price hikes are likely to improve its sales/ margins over FY18-19. We value the core business at a FY19 EBIT multiple of 14x leading to standalone value of Rs222/share. We value the insurance business at 2x B/V (Rs32/share), and value the rest of the subsidiaries at 1.5x B/V...