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Accumulate Exide Industries; target of Rs 238: Prabhudas Lilladher

February 12
21:25 2019

Prabhudas Lilladher’s research report on Exide Industries

Exide Industries’ Q3FY19 operating performance was broadly in-line with our estimates, wherein operating margins stood at 12.5%, up 10bps YoY / 30bps QoQ, marginally missing our expectations of 13%. With lead prices lower ~21% YoY (down ~7% QoQ) over Q3FY19, gross margins were higher 60bps YoY / 200bps QoQ. Staff costs as a % of sales too dipped 20bps YoY (up 40bps QoQ) while other expenses as a % of sales rose 70bps YoY (up 130bps QoQ).

Outlook

We maintain “Accumulate” with a price target of Rs238, based on 19xSep’19E standalone EPS plus value of investments. The stock is currently trading at 21.1x FY20E and 20.0x FY21E standalone EPS.

For all recommendations report, click here

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