EXIDE INDUSTRIES
Reco price: Rs 122
Current market price: Rs 117.40
Target price: Rs 151
Upside: 29%
Brokerage: Enam Securities

Exides December quarter revenues have been a tad lower than expected on account of lower industrial sales, a higher Ebidta margin at 24 per cent helped by higher share in replacement market, has compensated for the decline. The company reported a 16 per cent y-o-y growth in the revenue at Rs 910 crore, however, sequentially growth was lower by 4 per cent due to lower industrial sales mainly inverters.

The auto segment demand was higher by 14-15 per cent on y-o-y basis. Net profits grew by 132 per cent to Rs 130 crore. On the capital expenditure front, the company will spend Rs 140 crore in FY10, out of this; it has already spent Rs 70 crore, and is planning to spend Rs 200 crore in FY11 towards capacity expansion. The company intends to increase capacity by 10 per cent and 15 per cent in FY10 and FY11 respectively. The brokerage estimates an EPS of Rs 6.7 in FY10 and Rs 8 in FY12. On a sum-of-the-parts basis, the brokerage values the stock at Rs 151 per share.

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