Shares of Exide Industries Limited surged over 6 percent to reach a new 52-week high of Rs 423 per share on April 15, following a target price raise by Morgan Stanley to Rs 485 from Rs 373. The revised target price suggests a potential upside of 22.8 percent from the closing price of Rs 398 on April 12. Over the past year, the company’s stock has witnessed a remarkable surge of over 120 percent.
According to the international brokerage, Exide Industries Limited has multiple growth drivers that could propel its shares significantly higher over the next decade. Additionally, with the government’s push for Made in India electric vehicles (EVs), the company has the opportunity to emerge as a key player in battery cell localization.
Morgan Stanley highlighted Exide Industries’ robust partnerships with automobile and industrial sectors, along with its early mover advantage, as factors that could work in its favor. The recent partnership announcement with South Korean auto majors Hyundai Motor Company (HMC) and Kia Corporation for electric vehicle battery localization further boosts the company’s prospects in the EV segment.
Following this development, JPMorgan assigned an ‘overweight’ call on Exide Industries’ stock, noting that the company’s ability to secure partnerships with global original equipment manufacturers (OEMs) alleviates investor concerns. Moreover, JPMorgan suggests that more order wins could be expected as Exide continues discussions with several OEMs.
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