Please Share:: 
Exide Industries Target - | 220
• Exide Industries is the largest battery manufacturer in India and
largest supplier of batteries for motorcycles, passenger vehicles,
trucks and tractors. With the estimated registered vehicles in India
nearly doubling to 12.3 crore during FY03-10 (up 83%), ~9 crore
batteries are likely to be sold from FY15-17E (considering three
cycle replacement). Exide’s enviable network of >20,000 retail
touch points is the major factor in maintaining the leadership
position in the burgeoning replacement segment
• Exide’s performance has been improving in the past couple of
quarters after about three years of underperformance in financials
with low utilisation levels (~70%), loss of pricing power leading to
a systemic downgrade of EBITDA margins from 20%+ levels to
as low as ~8%. Going ahead, with expectation of a strong pick-up
in demand from the automotive segment and higher levels of
industrial activity leading to higher volumes and therefore
utilisation levels, Exide’s operating margins are likely to improve
• With strong replacement demand likely to continue and OEM
demand also likely to pick up, Exide’s financial performance is
likely to remain on an uptrend, with topline, bottomline growth of
~17%, ~30% CAGR in FY14-17E. Consequently, RoCE and RoE
are also likely to improve to ~26%, ~19%, respectively, by FY17E
�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��
��
-->
Exide Industries Target - | 220
• Exide Industries is the largest battery manufacturer in India and
largest supplier of batteries for motorcycles, passenger vehicles,
trucks and tractors. With the estimated registered vehicles in India
nearly doubling to 12.3 crore during FY03-10 (up 83%), ~9 crore
batteries are likely to be sold from FY15-17E (considering three
cycle replacement). Exide’s enviable network of >20,000 retail
touch points is the major factor in maintaining the leadership
position in the burgeoning replacement segment
• Exide’s performance has been improving in the past couple of
quarters after about three years of underperformance in financials
with low utilisation levels (~70%), loss of pricing power leading to
a systemic downgrade of EBITDA margins from 20%+ levels to
as low as ~8%. Going ahead, with expectation of a strong pick-up
in demand from the automotive segment and higher levels of
industrial activity leading to higher volumes and therefore
utilisation levels, Exide’s operating margins are likely to improve
• With strong replacement demand likely to continue and OEM
demand also likely to pick up, Exide’s financial performance is
likely to remain on an uptrend, with topline, bottomline growth of
~17%, ~30% CAGR in FY14-17E. Consequently, RoCE and RoE
are also likely to improve to ~26%, ~19%, respectively, by FY17E
�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��
��
No comments:
Post a Comment