Prabhudas Lilladher has given Buy recommendation for Exide Industries with a target price of Rs. 238 in its research report issued on Jan 31, 2021

Prabhudas Lilladher’s research report on Exide Industries

EXID’s 3QFY21 revenues/EBITDA/PAT were in-line, wherein the company reported highest ever adj PAT at Rs2.4bn. EBITDA margins expanded by 110bp YoY/20bp QoQ at 14.4% led by favorable product mix and better cost control initiatives. Going forward, we believe growth drivers are in place for EXIDE led by i) continued growth in auto and non-auto replacement volumes and ii) structural market share gains for organized players. Further EXIDE has recently commenced battery supply to EV 3W segment which should address concern on EV battery readiness and help drive re-rating. We have largely maintained EPS and factor in revenue/EBITDA/PAT CAGR of 9%/11%/12% over FY20-23E.


We maintain ‘Buy’ with revised SoTP based price target of Rs238 (earlier Rs236, based on 16x Mar’23E core EPS plus Rs16 for insurance subsidiary). Stock is trading at 16.3x/13.9x for FY22/23 core EPS.