Shares of Exide Industries Limited zoomed over 6 per cent to hit a new 52-week high of Rs 423 apiece on April 15 as Morgan Stanley raised the target price to Rs 485 from Rs 373 after citing multiple levers for growth for the company.
Global brokerage Morgan Stanely, in its latest note, said Exide Ind shares can rise significantly over the next decade as the firm could become a leading player in battery cell localisation. It has raised its target price on the batter maker’s shares to Rs 485 from Rs 373 earlier with an overweight rating.
Earlier this month, Exide announced that its wholly-owned unlisted subsidiary (Exide Energy Solutions Ltd) has signed a non-binding memorandum of understanding (MoU) with Hyundai Motor Company (Hyundai Motors) and Kia Corporation (Kia) for strategic co-operation in India’s EV (electric vehicle) market.
Both the parties will work together for development, production and supply of battery cells for Hyundai Motor’s electric vehicles dedicated to the Indian market, it stated.
On the technical front, the counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock’s 14-day relative strength index (RSI) came at 51.03. A level below 30 is defined as oversold while a value above 70 is considered overbought.
An analyst largely suggested that Exide has potential to rise further in the near term.
The battery maker’s stock has remained in focus this year and has given a return of 23 per cent year-to-date as against benchmark Sensex which has risen 2.7 per cent during the period. In the past year, it has made investors 111 per cent wealthier whereas Sensex has gone up 24 per cent during the period.
Morgan Stanley believes that the government’s support for ‘Made in India’ electric vehicles, strong auto and industrial customer tie-ups, tech tie-ups, and an early mover advantage could all play in the battery maker’s favour.
It also expects the total addressable market to rise sharply to 150GWh/US $13 billion by 2030 India’s lithium battery segment.
However, Kotak Institutional Equities is not very convinced and has a ‘Sell’ rating on the stock on expensive valuations. The domestic brokerage had revised its target price to Rs 270 on April 8.
Exide Industries has said it plans to invest Rs 4,500-5,000 crore in 6 GW battery capacity (Rs 1,820 crore already invested), indicating that the lithium business is valued at 1 times its FY26 estimates of price-to-book ratio (P/B ratio).
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