Exide Industries has dipped 2% at Rs 114, also its 52-week low on the National Stock Exchange (NSE). The stock opened at Rs 117 and touched high of Rs 118 in early morning deals on NSE.
Shares of auto parts and equipments maker has fallen 13% in past one month after reporting 6% year-on-year (yoy) decline in net sales at Rs 1,427 crore for the quarter ended September 30, 2013 (Q2). The company’s net profit too, declined by 1% at Rs 119 crore on yoy basis. The NSE benchmark index has fallen 3.6% during the same period.
Management attributes the same to sluggish demand in auto OEM segment and Industrial batteries, mainly infrastructure and home inverter segments.
However, the analysts from the local broking firm have recommended ‘Buy’ rating on the stock with a target price in the range of Rs 136 to Rs 137.
We expect the company to focus on profitability more than market share gains from here on. Given the price stability in the battery replacement segment, slew of price hikes and richer product mix in favour of replacement, we continue our positive stance on the stock, says analyst at Prabhudas Lilladher.
With the current exchange rate, the management guided for maintaining the operating profit margin trajectory. They guided for margin improvement to 15%+ and focusing on profitability and not market share gains this year, says analyst at Edelweiss Securities in a note.
Shares of auto parts and equipments maker has fallen 13% in past one month after reporting 6% year-on-year (yoy) decline in net sales at Rs 1,427 crore for the quarter ended September 30, 2013 (Q2). The company’s net profit too, declined by 1% at Rs 119 crore on yoy basis. The NSE benchmark index has fallen 3.6% during the same period.
Management attributes the same to sluggish demand in auto OEM segment and Industrial batteries, mainly infrastructure and home inverter segments.
However, the analysts from the local broking firm have recommended ‘Buy’ rating on the stock with a target price in the range of Rs 136 to Rs 137.
We expect the company to focus on profitability more than market share gains from here on. Given the price stability in the battery replacement segment, slew of price hikes and richer product mix in favour of replacement, we continue our positive stance on the stock, says analyst at Prabhudas Lilladher.
With the current exchange rate, the management guided for maintaining the operating profit margin trajectory. They guided for margin improvement to 15%+ and focusing on profitability and not market share gains this year, says analyst at Edelweiss Securities in a note.