Buy Exide Industries, target price Rs 482: IIFL Securities

IIFL Securities recommends buying Exide Industries shares, setting a target price of Rs 482. This represents a potential upside of approximately 3% from the current market price of Rs 468.2. The brokerage firm's positive outlook is based on the company's strong growth prospects in the automotive battery segment, as well as its cost-optimization efforts and focus on new product development.

About Exide Industries:

Exide Industries is a leading Indian storage battery manufacturer. Established in 1947, it is a part of the Exide Group. The company produces a wide range of batteries, including automotive, industrial, tubular, and solar applications. Exide has a strong market presence in India and exports its products to over 50 countries. It has 14 manufacturing facilities across the country and one in Sri Lanka. The company's research and development center in Pune is involved in developing new technologies and products. Exide is committed to sustainability and has adopted various initiatives to reduce its environmental footprint.

52 Week Price Trend:

Exide Industries (EXIDEIND.NSE), a leading battery manufacturer, currently trades at Rs 468.2, within the range of its 52-week high of Rs 354 and 52-week low of Rs 170.5. This indicates a strong recovery from its lows, fueled by improved demand in the automotive and industrial sectors. However, the stock still has room for growth to reach its previous high. Investors should monitor the company's financial performance and industry trends to gauge its potential for further appreciation.

Stratzy's MOST Analysis:

EXIDEIND has received a BB rating under Stratzy's MOST framework, indicating a medium level of fundamental risk. This rating considers the company's management, outlook, safety, and trend. The rating is based on a scoring system that evaluates these four pillars and assigns an overall score. A rating of BB signifies that EXIDEIND has some strengths and weaknesses, and investors should be aware of potential risks before investing.

Company's Fundamentals:

Exide Industries (NSE:EXIDEIND) is a leading battery manufacturer in India. Its financial ratios indicate its valuation and profitability. The stock PE of 31.98 suggests that investors are willing to pay approximately 32 times the company's earnings per share to own its stock. The PB Ratio of 2.23 indicates that the current market value of the company's shares is 2.23 times its book value per share, implying that it is moderately overvalued. However, the Dividend Yield of 0.61% indicates that the company pays a relatively small portion of its earnings as dividends to shareholders, suggesting that it may be prioritizing investment in growth over dividend payments.

Fundamental and Technical information provided in this blog were last updated on 20 Apr, 2024

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