Investment Pick - Exide Industries Ltd.
* Exide Industries (Exide) reported decent set of numbers in Q2FY21 which was marginally better than our estimates. Its net revenue grew by 5.5% YoY led by healthy revival in replacement demand. On the operational front, lower gross margins and higher employee cost restricted the margin improvement for the company as it expanded by a meagre 17bps to 14.2%.
* We expect Exide to strengthen its position in the replacement segment and the recovery in auto OEM volumes and other institutional players augurs well for growth prospects of the company. Maintain Buy.
Buy Exide Industries Ltd @ 9-12 Months CMP 170.4 TGT 205
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