Nomura has maintained its neutral rating on Exide with a target price of ₹427 after the company reported a weaker-than-expected performance in the second quarter. The brokerage said revenue and margins both missed expectations, primarily due to destocking caused by the GST rate cut. It expects performance to improve from the second half as demand normalises.
Nomura added that the cell manufacturing business will remain a key factor to watch in the near term. The brokerage continues to project around 10% revenue CAGR over FY26–28 but warned that rising lead prices could pose a risk to its EBITDA margin expectations of 12.2%, 13% and 13.1% across FY26–28 if the company is unable to fully pass on the cost increases.
Nomura believes the medium-term trajectory remains steady but cautioned that commodity movements will influence margin stability.
Disclaimer: The views above are those of Nomura. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
