Stocks

Exide shares extend gains on robust net profit

BL Internet Desk May 8 | Updated on May 08, 2018 Published on May 08, 2018

Goldman Sachs has raised its FY19-20 revenue estimates by an average of 2.4 per cent to factor in robust volumes and lead prices.

Shares of Exide Industries Ltd edged higher on Tuesday, after gaining over 5 per cent in the previous session. At 1.50 pm local time, the company shares were trading up by 1.75 per cent at Rs 266.75 on the BSE.

The country’s largest battery maker had on Monday reported a near 16 per cent jump in net profit at Rs 190 crore for the January to March quarter of FY18. Net profit in the year-ago quarter stood at Rs 164 crore. Revenue from operations during the period under review stood at Rs 2,459 crore.

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Morgan Stanley says Exide posted strong growth and margin progression in Q4, while Goldman Sach says Q4 earnings were above expectations.

Deutsche Bank says Exide's quarterly operating results came in line with forecasts but marginally better than consensus. Morgan Stanley adds FY19 should show a pick-up in replacement sales and healthier margins because lead prices have corrected.

Goldman Sachs has raised its FY19-20 revenue estimates by an average of 2.4 per cent to factor in robust volumes and lead prices. Deutsche Bank says robust revenue growth for Exide is driven by stabilisation in automotive battery market-share/pricing and cyclical uptick in industrial batteries.

It has however cut its FY19/20 EPS forecasts marginally (3 per cent) due to lower other income and higher tax rate assumptions. Goldman Sachs has raised Exide's price target to Rs 273 from Rs 250, while Deutsche Bank has raised the price target to Rs 230 from Rs 210.

Morgan Stanley has maintained 'overweight' on the stock with a price target of Rs 266. The stock has risen 17 per cent this year to Monday's close.

(With inputs from Reuters)

Published on May 08, 2018

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