Exide Industries Q1 Results Review - Ebitda Margin Weaker Than Expected; Downgrade To 'Hold': IDBI Capital

IDBI Capital Report

Exide Industries Ltd.'s Q1 FY24 Ebitda was below our estimate. Its revenue increased by 4.4% YoY to Rs 40,726 million (below our forecast) mainly on strong growth from automotive segment.

Ebitda grew by 11.8% YoY and by 17.7% QoQ to Rs 4,322 million and Ebitda margin expanded 70 bps YoY and 25 bps QoQ to 10.6% despite firm prices of key raw materials during the quarter. Adjusted net profit increased by by 6.9% YoY to Rs 2,419 million.

Exide aims to accelerate process of setting up lithium ion cell manufacturing project.

Broadly we maintain our FY24- 25 estimates. We now value the stock at a price-to-earnings ratio of 15 times (earlier 14 times) on FY25E earnings per share to derive a target price of Rs 241 (earlier Rs 225).

Given the recent rise in stock price, we downgrade the stock to a 'Hold'.

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