Exide Industries Ltd. share price target

Exide has garnered market share with its renewed strategy under the leadership of new MD and CEO, Gautam Chatterjee, and this is expected to continue. Market share gains have been aided by focus on improvements in service/warranty initiatives, rising penetration of...

Exide Industries Limited (EIL) is a leader in storage battery business with a market share of 60% in India. Its segment includes automotive and industrial lead acid batteries. Revenue for the Q3FY19 grew by 10%YoY led by strong volume growth across segments in Automobile, Inverter and Industrial batteries. Despite 200bps QoQ (60bpsYoY) improvement in Gross margin due to 8% softening in lead price, EBITDA margin improved by only 20bps. EIL is focussing on cost control initiatives and technological...

Maintain Buy with SOTP-based TP of Rs 275, based on 20x Dec-20E EPS + 2x Inv (Rs 37) for the insurance business stake. Exide reported lower than expected 3Q results, as the EBITDA margin was flat (+10bp y/y, +30bp q/q) at 12.5%. Thus, while lead prices have corrected through the year, the company has incurred higher other expenses. Although gross margin improved 200bps QoQ, EBITDA margin was largely flat (+10bp y/y, +30bps q/q) at 12.5%. The modest revenue growth of 10% is also partially impacted by lower lead prices (which are a pass through) as management highlighted that volumes for automotive, UPS and solar have been quiet healthy.

Exide reported weaker than expected results for Q3FY19. Its net revenue was 6.3% below our estimates. Even EBITDA and net profit were 8.1% and 14.2% below our forecast. Net revenue grew by 9.6% on YoY basis to Rs 25 bn. Automotive, motorcycle, inverter and industrial batteries showed good volume growth. EBITDA margin improved by 29bps QoQ to 12.5% mainly on fall in prices of key raw material, lead. However, net...

ICICI Securities Ltd | Retail Equity Research Exide Industries (EIL) reported a muted Q3FY19 performance Net sales for the quarter were at | 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 | 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...

4 February 2019 grew by 9.6% YoY (-8.2% QoQ) to ~INR25b driven by growth in automotive, UPS and solar batteries. Average spot lead prices for 3QFY19 declined by 3.4% QoQ (-12% YoY) to INR142 per kg. In Jan19, lead prices declined further by 0.4% (v/s 3QFY19). margins expanded 200bp QoQ (+60bp YoY) to 35.1% (our est. On a YoY basis, the benefits of lower RM (-60bp YoY) and staff costs (-20bp) were offset by higher other expense (+60bp YoY/ +130bp QoQ) to 16.1% (our est. Consequently, EBITDA grew 10.6% YoY (-6.

We expect Indian Automotive Battery market to grow from ~70mn to ~100mn over FY17-20. However, addressable automotive battery market for Exide is likely to increase from ~`78bn to ~`170bn (2.2x increase). Being the largest player in India with a strong...

Exide Industries Limited (EIL) is a leader in storage battery business with a market share of 60% in India. Its segment includes automotive and industrial lead acid batteries. EIL is focussing on cost control initiatives and technological upgradation as strategies to improve bottom line. Newer cost effective brands like Boss/Dynex at competitive price are expected to support market share gain from the unorganized players....

As per the management, the volume growth in Automotive, Motorcycle, Inverter and Industrial batteries have shown good growth during the second quarter. However, currency depreciation and high fuel cost had adverse impact on the margin of the business as a whole. The company is focusing on cost control and technology upgradation strategies to improve bottom-line. Exceptional Item of `1.08bn during the year pertains to profit on sale of property. We believe Exide is likely to be a key beneficiary of GST as it will benefit from shift of...

Maintain Buy with SOTP-based TP of Rs 304, based on 20x Sept-20E EPS + 2x Inv (Rs 37) for the insurance business stake. Exide reported subdued EBIDTA margin in 2Q (at 12.2% vs est 14.2%) hit by currency depreciation, higher freight and marketing expenses. Net revenue grew 15% YoY to Rs 27.20bn led by strong traction in automotive and industrial batteries sales. EBITDA rose 12.4% YoY to Rs 3.32bn.