Skip to main content

Powering Ahead: Sharekhan Recommends Buying Exide Industries, Sets Bullseye Target at Rs 301!

Powering Ahead: Sharekhan Recommends Buying Exide Industries, Sets Bullseye Target at Rs 301!

The road ahead for Exide Industries (Exide) looks promising, as the company's management envisions a stable demand in the automotive sector and a robust traction in the industrial segment. 

This optimistic projection is supported by key factors, including a favorable trend in commodity costs and a revival in replacement demand. These elements are poised to provide a solid foundation for the company's operational performance and growth trajectory.


The automotive industry has witnessed significant shifts in recent times, driven by technological advancements, changing consumer preferences, and global economic dynamics. 

Amidst this transformative landscape, Exide Industries remains steadfast in its anticipation of a consistent demand within the automotive sector. This positive outlook is not only a testament to the company's resilience but also a reflection of its strategic initiatives to align with emerging trends.


Furthermore, the industrial segment presents a compelling growth avenue for Exide. The company's confidence in a healthy traction within this segment underscores its adaptability and readiness to tap into diverse market opportunities. 

This strategic diversification enhances Exide's resilience against market fluctuations and positions it favorably for sustained growth.


One of the critical factors contributing to Exide's positive trajectory is the softening trend in commodity costs. This favorable trend not only supports the company's cost management strategies but also enhances its profitability outlook. Combined with a revival in replacement demand, Exide is poised to capitalize on the evolving market dynamics and translate them into a robust operating performance.


From a valuation standpoint, Exide Industries exhibits appealing metrics. The stock is currently trading at a Price-to-Earnings (P/E) multiple of approximately 16.4 times, along with an Enterprise Value-to-EBITDA (EV/EBITDA) multiple of around 7.9 times, both based on the company's fiscal year 2025 estimates. 


These valuation indicators not only underscore Exide's intrinsic worth but also highlight the investment potential it holds within the market.


Looking forward, our assessment aligns with a positive investment recommendation for Exide Industries. This conviction is further reinforced by a Sum of the Parts (SOTP) based Price Target (PT) of Rs 301. This projection is anchored in several pivotal growth drivers that are expected to shape Exide's journey in the coming years.


Firstly, the company is poised to benefit from a prospective recovery in replacement demand, riding the wave of economic resurgence. Secondly, Exide Industries is well-positioned to leverage the robust traction within its Original Equipment Manufacturer (OEM) business segment, tapping into the burgeoning market dynamics. Lastly, the successful execution of the Lithium-Ion (LI ion) project stands as a potential game-changer, enhancing Exide's competitive prowess and expanding its footprint.


In conclusion, Exide Industries stands as a compelling narrative of adaptability, resilience, and growth. The company's strategic vision, coupled with the tailwinds of industry trends, positions it favorably for sustained success. 


As we reiterate a Buy rating for Exide Industries, the Sum of the Parts (SOTP) based Price Target (PT) of Rs 301 serves as a beacon of the company's value proposition, encapsulating the potential it offers to investors seeking a prudent and promising investment avenue within the automotive and industrial sectors.

Labels:
Location: Mumbai, Maharashtra, India

Comments

Post a Comment

Popular posts from this blog

Inspirational Story Of Ferrari - Amazing Adviser

Inspirational  Story Of Ferrari Hello friends, today I'm going to discuss one of the most popular sports car companies in the world - Ferrari. Today, each sports car lover dreams to get a Ferrari. It keeps gaining popularity till today. This company was founded by Enzo Ferrari. So let's get to know the success story of Ferrari. Also Read, Success Story Of Amul Success Story of Dominos Pizza The story starts with 18 Feb 1898 when Enzo Ferrari was born in Italy. Enzo was fond of cars right from his childhood. At 10 yrs of age, he went to see a car race with his father.  At that point in time, he decided that he would become a racing driver. After that, he attended many car races. After completing his graduation from Modena College, he worked as a teacher.  But after a few months, he had to join the Italian army for the first World War. In 1916, he suffered a lot with emotions as well as the economy when his brother and father died. After returning from World War, he began to find
1 comment
Read more

Inspirational Story Of BMW - Amazing Adviser

  The wonder of science has shown many miracles in today's age in the form of spectacular vehicles.  Today I will discuss about a German company that specializes in designing cars, bikes and engines - BMW. It came into being before 101 years and is known for its expensive and luxury cars like Rolls Royce and Mini.  But do you know that BMW was in the list of those companies which were restricted to produce any kind of vehicles during the time of World War?  And in that period, this company started making bicycles and kitchen utensils.  Now let's go to the beginning of the story.  Also Read Success Story Of Ambassador Car   Success Story Of Jaguar   Success Story Of UBER     The founder of BMW was Karl Friedrich Rapp. He was born on 24 September 1882 in Germany.  He became a mechanical engineer and opened his start up named Karl Rapp Motorenwerke where mostly aircrafts and their engines were made.  When the first world war started, there was a huge demand of aero engines.  Thus,
5 comments
Read more

Success Story Of Colgate, One Of The Bestselling Toothpaste Brand

Success Story Of Colgate, One Of The Bestselling Toothpaste Brand "It cleans your breath while it cleans your teeth", can you guess whose slogan is this.  If you have guessed correct then today I'm going to tell you the success story of one of the best selling toothpaste brands of India i. e. Colgate.  It's popularity can be measured by thousands of situations where the term toothpaste is replaced by Colgate in India.  Do you know, this brand came into being almost 210 years ago, introduced by Williams Colgate .  And initially, this company used to produce soaps, not toothpaste that too in jars and not tubes.  So now, let's get back to the beginning of the story.  Also Read Success Story Of Haldiram Bujhia Success Story Of Amul How Maggie Became Successful? The founder of Colgate, Willam Colgate was born on 25 Jan 1783 in England. His father was a farmer.  But later, they shifted to Maryland in the US where his father along with a friend began to make candles
1 comment
Read more