Exide Industries Ltd. share price target

Exide Industries' Q4FY19 operating performance surpassed our estimates, Change in Estimates | Target | Reco wherein operating margins stood at 14.4%, up 70bps YoY / 190bps QoQ, against PLe of 13.5%. With lead prices lower ~20% YoY (down ~3% QoQ),...

Steady replacement market to ensure healthy volume growth! The domestic battery market is a duopoly in nature with Exide and Amara Raja cornering lion's share of market. Typically in the battery segment, in the auto space which forms bulk of sales (~80%), the battery players realise ~40-50% of battery demand from auto OEMs and the rest i.e. ~50-60% from the replacement market. Given the life of battery that is typically ~4 years, battery players realise steady replacement demand growth amounting to ~10% which will help them traverse the challenging times at auto OEMs...

Exide's 4QFY19 results were ahead of our estimates. The net revenue was ` 26bn (+6% YoY), due to higher automotive (especially from the replacement segment) and industrial battery sales. The EBITDA was ` 3.73bn (+10%YoY) with expanded margin at 14.4% (+62bps YoY), due to a...

EIL will be the direct beneficiary from any structural change in the auto demand owing to its leadership position having 60% market share in the automotive battery and 86% market share in 2W Looking ahead, expect the demand scenario for 2W to remain robust in next couple of years led by increased rural income, higher MSP and new product launches by OEMs. Company is well poised for cyclical uptick in OEM within automotives and inverters and telecom segment within industrial batteries. With an enriched portfolio, consistent focus on innovation, operational efficiencies, distribution network & service delivery, EXIDE is...

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...

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...