Apr'25 View on Exide Industries Ltd

Exide Industries Ltd is primarily engaged in the manufacturing of storage batteries and allied products in India. • Q3FY25: EBITDA below our estimates, due to a weak revenue print. • Company is well-positioned to benefit from growing demand for LiB, but we expect the profitability and return ratios to be under pressure. • We expect overall revenues to grow by 5-6% CAGR over FY24-27E. • We have cut our FY25-27 standalone EPS estimates by 3-5%. • We value lead-acid battery business at Rs184 per share based on NPV of future cash flows and LiB business at Rs116 per share at 12x EV/EBIT multiple. Q3FY25 Earnings update: Positives: • Gross margins improved by 50 bps qoq due to richer product mix and RM tailwinds. • We expect the company to deliver steady performance in the medium term. Negatives: • Standalone revenues were flat yoy (our estimate was +7% yoy). • Standalone EBITDA was Rs449 cr, 7% below our estimates. • Net profit came in at Rs245 cr in Q3FY25, 11% below our estimates.