Exide Industries - Result Update - ICICI Securities

Exide Industries (EIL) reported a soft Q4FY20 performance. Net standalone revenues were at Rs. 2,055 crore (down 20.9% YoY). The company attributed revenue decline to continued challenges being faced by the OEM channel. Reported standalone EBITDA margins were at 13.1% (down 11 bps QoQ), with gains from 201 bps gross margin expansion being eaten away by negative operating leverage. Consequent PAT was at Rs. 168 crore (down 20.3% YoY), supported to an extent by lower tax outgo (tax rate at 11.4%).

Valuation & Outlook

We maintain a constructive view on EIL for its technological edge, debt free B/S, strong cash generation track record (present CFO yield at 6.6%) but feel the stock is fairly valued at CMP. Hence, we downgrade it to HOLD, valuing it at Rs. 170 (SOTP basis), (battery business at Rs. 125 i.e. 12.9x P/E on FY22E EPS of Rs. 9.7; Rs. 45 for insurance business & smelting operations).

For details, click on the link below https://www.icicidirect.com/mailimages/IDirect_ExideInds_Q4FY20.pdf

Shares of EXIDE INDUSTRIES LTD. was last trading in BSE at Rs.158.7 as compared to the previous close of Rs. 173. The total number of shares traded during the day was 749732 in over 12675 trades.

The stock hit an intraday high of Rs. 169 and intraday low of 158. The net turnover during the day was Rs. 121137080.

Source : Equity Bulls

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