Best Stocks to Buy Today : IIFL Securities's call on Exide Industries

IIFL Securities is bullish on Exide Industries, recommending a buy call with a target price of Rs 514. As of May 27, the stock is trading at Rs 498.25, indicating a potential upside of around 3.12%. The company's strong market position, focus on innovation, and expanding distribution network are key growth drivers. IIFL Securities believes that Exide Industries is well-positioned to capitalize on the growing demand for automotive batteries in India and beyond.

About Exide Industries:

Exide Industries is a leading Indian manufacturer of lead-acid storage batteries for automotive, industrial, and power backup applications. Founded in 1947, the company has a strong presence in the domestic and international markets. Exide offers a wide range of battery products, including automotive batteries, inverter batteries, solar batteries, and industrial batteries. The company has a manufacturing capacity of over 44 GWhr and operates a network of over 700 sales and service points in India. Exide is committed to providing high-quality products and services, and has received numerous awards and recognition for its performance. The company is listed on the National Stock Exchange of India (NSE) and is a part of the FTSE 100 Index.

52 Week Price Trend:

Exide Industries, a leading battery manufacturer, is currently trading at Rs 498.25, representing a significant appreciation from its 52-week low of Rs 170.5. This substantial growth has been driven by the company's strong financial performance and positive industry outlook. The broader automotive and industrial sectors are expected to continue driving demand for Exide's batteries, contributing to the company's continued growth and potential for further upward movement in its stock price.

Stratzy's MOST Analysis:

Stratzy's MOST framework assigns a BB rating to EXIDEIND, indicating a medium level of fundamental risks. This rating is determined by analyzing the company's performance in the following four areas: Management, Outlook, Safety, and Trend. A BB rating suggests that the company has potential weaknesses or risks in some of these areas, but overall, its fundamentals are considered to be stable and not overly concerning.

Company's Fundamentals:

Exide Industries (NSE: EXIDEIND) is a leading manufacturer of lead-acid batteries in India. With a Stock PE of 31.98, it signifies that investors are willing to pay 31.98 times the company's annual earnings per share for each share they purchase. The PB Ratio of 2.23 indicates that the company's market value is 2.23 times its book value, suggesting potential undervaluation or overvaluation. The Dividend Yield of 0.61% implies that investors receive 0.61% of the share's current market price as annual dividends, indicating a relatively low dividend payout compared to other similar companies.

Fundamental and Technical information provided in this blog were last updated on 25 May, 2024

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