Top Stocks Today : IIFL Securities has Buy call on Exide Industries

IIFL Securities recommends buying Exide Industries at the current market price of Rs 434.7, with a target price of Rs 445. The company is expected to benefit from increased demand for batteries due to rising vehicle sales and growing adoption of electric vehicles. Exide Industries' strong brand recognition and distribution network position it well to capitalize on this opportunity. Additionally, cost-cutting initiatives and improved operational efficiency are expected to support margins.

About Exide Industries:

Exide Industries Limited is an Indian automotive and industrial battery manufacturer based in Kolkata, India. It is a part of the Exide Technologies group and is the largest battery manufacturer in India. Exide manufactures a wide range of batteries, including lead-acid batteries for automobiles, motorcycles, industrial equipment, and inverters. The company also produces lithium-ion batteries and energy storage systems. Exide has a strong distribution network across India and exports its products to over 100 countries. The company has a market capitalization of over ₹15,000 crore (US$2 billion) and is listed on the National Stock Exchange of India (NSE).

52 Week Price Trend:

Exide Industries' current market price (CMP) of Rs 434.7 reflects a significant appreciation from its 52-week low of Rs 170.5, indicating a bullish market sentiment. However, it is still below its 52-week high of Rs 354, suggesting potential for further upside. The company's strong fundamentals, such as its leading market position in the automotive battery segment and its focus on innovation, support the positive outlook. However, investors should also consider factors such as the competitive landscape and the overall economic conditions before making investment decisions.

Stratzy's MOST Analysis:

EXIDEIND has been rated BB by Stratzy's MOST Framework, indicating that the company has medium fundamental risks. This rating is based on an assessment of the company's management, outlook, safety, and trend. The BB rating suggests that EXIDEIND has a relatively solid financial position and a track record of stable growth. However, the company may face some challenges in the future, such as increased competition or changes in the regulatory landscape.

Company's Fundamentals:

Exide Industries (EXIDEIND) trades on the NSE with a current stock PE ratio of 31.98, which measures its share price relative to its annual earnings. Its PB ratio of 2.23 compares its market value to its book value, indicating a premium valuation. The company offers a dividend yield of 0.61%, representing the annual dividend payout as a percentage of its share price. These metrics suggest that EXIDEIND is currently priced at a premium and pays a modest dividend to its shareholders.

Fundamental and Technical information provided in this blog were last updated on 16 Apr, 2024

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