Exide Industries Q4 Results Review - Operational Beat; LAB Outlook Upbeat: Motilal Oswal

Motilal Oswal Report

Exide Industries Ltd.’s Q4 FY24 operating performance beat our estimates, mainly led by an improved mix and lower raw material costs. The company noted that all the verticals saw healthy growth, with the industrial division growing in double digits on a high base.

We raise our FY25E/FY26E EPS by ~10%/13% to factor in an improved demand environment and a reduction in input costs. However, while the market seems to be upbeat about Exide’s lithium ion foray, we remain circumspect about the returns from the business.

After the recent run-up, the stock at ~29 times/25 times FY25E/FY26E EPS appears fairly valued. We, hence, maintain Neutral rating on the stock with a revised target price of Rs 430 (based on 20 times FY26E EPS + Rs 52/share for HDFC Life stake.

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