Sharekhan has given Buy recommendation for Exide Industries with a target price of Rs. 229 in its research report issued on Jan 31, 2022

Sharekhan’s research report on Exide Industries

In Q3FY22, Exide’s reported revenues, EBITDA and PAT lagged our expectations by 8.7%, 19.4% and 15.5% respectively, largely due to input cost pressures. Exide is expected to benefit from a recovery in automotive demand, improving share of replacement sales and rising sales of industrial batteries. Divestment of insurance business to help company to focus on its core business. Earnings are likely to post a 14.3% CAGR during FY2021-FY2023E, driven by a 13.2% revenue CAGR and a 30-bps improvement in EBITDA margins.

Outlook

We maintain a Buy on the stock with an unchanged PT of Rs. 229. The stock is available at comfortable valuations at P/E multiple of 11.8x and EV/EBITDA multiple of 7.6x its FY2023E estimates.

More Info on Trent

At 16:00 hrs Exide Industries was quoting at Rs 175.05, up Rs 1.65, or 0.95 percent.

It has touched an intraday high of Rs 178.70 and an intraday low of Rs 172.40.

It was trading with volumes of 497,387 shares, compared to its thirty day average of 321,155 shares, an increase of 54.87 percent.

In the previous trading session, the share closed down 1.08 percent or Rs 1.90 at Rs 173.40.

The share touched its 52-week high Rs 220.60 and 52-week low Rs 152.65 on 24 February, 2021 and 20 December, 2021, respectively.

Currently, it is trading 20.65 percent below its 52-week high and 14.67 percent above its 52-week low.

Market capitalisation stands at Rs 14,879.25 crore.

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