Sunday, July 19, 2009

Update on EXIDE INDS (CMP Rs 78.45):-
EXIDE is approaching our target of Rs 85-90 This is an update as EXIDE came out with a good results in Q1:-

  • PAT growth of 48.90% to Rs 1224mn from Rs 822mn
  • Income fell marginally to Rs 9043.50mn from Rs 9088.80mn

Further Outlook for EXIDE:-
The demand for batteries in industrial segment is still strong (UPS, Invertors, Telecom etc). Auto battery space is a bit challenging but with improved sales by Indian auto companies and EXIDE being a popular and preferred name; long-term demand will keep coming to it. The distribution network and increasing backward integration (it did acquire Tandon Metals and Leadage Alloys for its lead needs) will help EXIDE sustain tough times as well. As the stock is approaching our given targets, partial profit-taking is advisable here, rest one can hold for even triple-digit targets in a year's time frame.

EXIDE results press release:-{FD85246E-6614-4343-859A-BB22C80306BE}&param1=1
Previous Posting on EXIDE

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