Operational beat; LAB outlook upbeat

Company
27 May 2024
5 Min read 
  • Exide's 4QFY24 operational performance beat estimates with improved mix and lower raw material costs.
  •  FY25E/FY26E EPS raised by ~10%/13% due to improved demand environment and reduction in input costs.
  •  Market upbeat about EXID's lithium ion foray, but returns from the business remain uncertain.
  •  Stock at ~29x/25x FY25E/FY26E EPS appears fairly valued, hence maintaining a Neutral rating.
  •  LAB business outlook remains upbeat with strong volume growth across verticals of OEMs, exports, and aftermarket.
  •  Foray into lithium ion business has multiple challenges and remains uncertain in the long run.
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