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.

Read more

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

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!


Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.