Accumulate Exide Industries; target of Rs 495: Prabhudas Lilladher

Prabhudas Lilladher's research report on Exide Industries

Exide Industries’ (EXID) 4QFY24 performance was better than our as well as street estimates. Its revenue grew by 13.2% YoY/4.4% QoQ slightly higher than PLe/BBGe estimates. Gross profit grew by 25.2% YoY/9.4% QoQ and gross margin expanded by 316bps YoY/151bps QoQ. Consequently, EBITDA expanded by 40.6% YoY/17.3% QoQ while margin increased by 251bps YoY/142bps QoQ to 12.9%. Despite a significant decline in its other income, its PAT grew by 36.5% YoY/18.1% QoQ owing to strong overall performance. Going ahead, it remains optimistic on growth prospect of Automotive as well as Industrial Division which will be driven by robust demand in OEM & replacement market and private/public capex respectively. We believe EXID is well placed to deliver healthy growth in near-to-medium term which will led by 1) Strong volume growth in OEM as well as replacement market. 2) Diversified and technological advanced product offering. 3) Continuous traction in its Industrial Division business. Additionally, the commencement of its Lithium-Ion battery plant in the given timeline shall prove to be the next leg of growth as it has already signed a non-binding MoU with leading industry OEMs.

Outlook

Factoring this, we estimate its revenue/EBITDA/PAT to grow at a CAGR of 13.6%/19.7%/25.7% over FY24- FY26E and retain accumulate rating with TP of Rs 495 (previous Rs 340) on SoTP.

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Exide Industries - 02052024 - prabhu