Q4FY21 Result Update - Exide Industries - ICICI Direct

Exide Industries (EIL) reported a healthy operational performance in Q4FY21. Net sales for Q4FY21 were at Rs. 2,939 crore (up 43% YoY, 5% QoQ), driven by strong demand across automotive & industrial segments, including aftermarket offtake in automotive and UPS. EBITDA margins at 14% were down 35 bps QoQ amid 108 bps savings realised in employee costs while gross margins contracted 159 bps QoQ. Consequent standalone PAT came in at Rs. 244 crore, up 45% YoY, 1% QoQ.

Valuation & Outlook

For EIL, we build 16.9%, 11.1% sales, PAT CAGR in FY21P-23E. Valuations for EIL remain fairly reasonable but fresh demand concerns and expected margin pressures prompt us to downgrade the stock from BUY to HOLD. We assign a revised SOTP-based target price of Rs. 200 (earlier Rs. 225). We await contours of the PLI scheme for advance cell chemistry (Rs. 18,000 crore worth incentives over five years) before turning decisively positive on EIL.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Exide_Q4FY21.pdf

Shares of EXIDE INDUSTRIES LTD. was last trading in BSE at Rs.177.9 as compared to the previous close of Rs. 178.1. The total number of shares traded during the day was 440465 in over 5235 trades.

The stock hit an intraday high of Rs. 182.7 and intraday low of 176.9. The net turnover during the day was Rs. 79095859.

Source : Equity Bulls

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