EXIDE IN­DUS­TRIES

Flash News Investment - - RECOMMENDATIONS -

Exide In­dus­tries is en­gaged in the man­u­fac­ture of lead acid stor­age bat­ter­ies and also op­er­ates in the seg­ments of so­lar lanterns and home­lights. We had rec­om­mended the scrip on May 15, 2017, on the ba­sis of ex­pected in­crease in re­place­ment de­mand, price hike and tech­nol­ogy upgra­da­tion. The com­pany’s Q2FY18 re­sults were dis­ap­point­ing as the vol­ume growth did not trans­late into higher earn­ings. The com­pany's rev­enue in Q2FY18 in­creased by 9.2% YoY; how­ever, the mar­gin pres­sure kept the EBITDA flat. Also, PAT de­clined by 25.4 per cent YoY to Rs.135 crore. We don’t see a near-term re­cov­ery in vol­umes and hence urge in­vestors to EXIT from the stock.

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