Exide Industries’ share price continued its bull run on Tuesday as it received an optimistic call from another global brokerage firm.
What Happened: The surge today comes as Nomura maintained its “buy” rating for the stock with a price target of ₹485. The analysts said that the Memorandum of Understanding (MoU) with Hyundai/Kia provides the validation for the company’s EV cell business.
This new alliance with global automotive giants and government support, coupled with the growing traction in the electric vehicle (EV) segment, is a key factor for Exide’s potential success in the EV battery market, the brokerage added.
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The brokerage firm is now more optimistic about Exide’s ability to secure new orders from other Original Equipment Manufacturers (OEMs) in the industry. The analyst highlighted that in order to comply with the Production Linked Incentive (PLI) norms, OEMs will need to achieve 50% localization for domestic value addition. This requirement is expected to drive demand for local suppliers like Exide.
JP Morgan was also highly impressed by the MoU and maintained its “overweight” rating for the stock, raising the price target from ₹330 to ₹480. However, Kotak Securities has a cautious stance. The domestic brokerage has a "sell" rating with a price target of ₹270.
Price Action: Exide’s share price was up 5.66% to trade at ₹432.20 in early trade on Tuesday.
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