Sharekhan has given Buy recommendation for Exide Industries with a target price of Rs. 229 in its research report issued on Jan 29, 2021
Sharekhan’s research report on Exide Industries
Exide Industries Limited (Exide) reported results in-line with our expectations, driven by strong traction in aftermarket, recovery in OEM growth and margin expansion. We expect Exide to be the beneficiary of improving automotive replacement demand, aided by strong recovery in two-wheelers and four-wheelers replacement demand. Our channel checks suggest that the demand for industrial batteries is catching up faster than expected. Exide is expected to gain from the buoyant demand in the replacement segment, given its strong brand equity and extensive distribution network.
Outlook
The stock is trading attractively at P/Core EPS multiple of 14.5x and EV/EBITDA multiple of 8.8x its FY2023E estimates. We maintain our Buy rating on Exide with unchanged PT of Rs. 229.
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