Exide Industries - Q2FY21 Result Update - ICICI Direct

Exide Industries reported a steady Q2FY21 performance. Net standalone sales in Q2FY21 were at Rs. 2,753 crore (up 5.5% YoY). The topline growth was driven by healthy replacement demand in the automotive and UPS segment with OEM and institutional demand gaining traction during the latter part of the quarter. EBITDA in Q2FY21 was at Rs. 392 crore with corresponding EBITDA margins at 14.2%. The margin performance was steady amid RM costs that were at 65% of sales, partly mitigated by savings in other expenses. Consequent standalone PAT came in at Rs. 229 crore.

Valuation & Outlook

Sales, PAT are seen growing at 4.7%, flattish CAGR in FY20-23E respectively. We believe the stock is near fair value at the CMP. Hence, we downgrade the stock from BUY to HOLD valuing it at Rs. 180 (SOTP basis), (battery business at Rs. 148 i.e. ~15x P/E on average of FY22E & FY23E EPS; Rs. 32 for insurance business & smelting operations).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_ExideInds_Q2FY21.pdf

Shares of EXIDE INDUSTRIES LTD. was last trading in BSE at Rs.170.3 as compared to the previous close of Rs. 170.3. The total number of shares traded during the day was 95114 in over 1572 trades.

The stock hit an intraday high of Rs. 172.85 and intraday low of 167.6. The net turnover during the day was Rs. 16251471.

Source : Equity Bulls

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