Exide shares were volatile on Thursday after the stock surged on Tuesday after posting results for the quarter ended March.

What Happened: The battery major’s standalone net profit for the quarter ended March 31, stood at ₹284 crore, reflecting a 36.5% increase compared to ₹208 crore reported in the same quarter of the previous year. Additionally, the company’s revenue from operations experienced a growth of 13%, reaching ₹4,009 crore compared to ₹3,543 crore in the same quarter last year.

Analysts Reactions: ICICI Direct has a “buy” rating for the stock with a target price of ₹550. The brokerage said that the company posted strong numbers for the quarter ended March.

The company “surprised us positively by reporting 12.9% as EBITDA margins in Q4FY24,” the brokerage firm said in its report. As per the analysts, the improvement in margins was led by a 150 basis points expansion in gross margins amid a likely price hike in the replacement market and a decline in raw material costs.

Sharekhan also maintained its “buy” rating for the stock with a price target of ₹537. The brokerage firm pointed out that not only was the company’s performance in the March quarter above expectations the management also shared an optimistic outlook for both the automotive and industrial segments.

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Nuvama also maintained its “buy” rating for the stock raising the price target to ₹540 from ₹370. The brokerage said that the company’s revenue was slightly above its estimates but EBITDA for the quarter beat its expectations by 12%.

Kotak Securities, on the other hand, maintained its “sell” rating for the stock with a target price of ₹300. The analysts noted that the company’s profit was 5% below its estimates due to lower other income. The brokerage added although it thinks the company is well-positioned to benefit from growing demand for
lithium-ion batteries, it expect profitability/return ratios to be under pressure.

Technical Analysis: Talking about the stock's technicals, Anshul Jain, Head of Research at Lakshmishree told Benzinga India, “The stock has shown a promising breakout pattern on its monthly chart spanning over 63 months. The recent observation of an inside bar formation last week, coupled with the emergence of a flag pattern on the daily chart, signals potential upward momentum in the stock’s trajectory.”

“The stock is experiencing continuous selling pressure from its higher levels of 480-485 zone and witnessing profit booking at those levels. With the stock having risen close to 50% in the last month, the RSI (14) on daily charts indicates slightly overbought conditions. Any movement above 490 should propel the stock towards 520 – 550. However, at present levels, it appears to be a tough breakout. We advise investors to maintain their positions with a trailing stop loss at the 450 mark,” said Riyank Arora, Technical Analyst at Mehta Equities.

Price Action: Exide shares were up 3.38% to trade at ₹470.95 on Thursday mid-day.

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