Shares of Exide Industries Ltd, a battery maker, rose over 5% to Rs 498 each on May 27. This happened after JPMorgan increased its target price for the stock to Rs 520, predicting more gains.
JPMorgan has given Exide an ‘overweight’ rating, suggesting the stock could rise another 10% from its current price. The previous target was Rs 480.
The brokerage is optimistic about Exide’s performance across its business areas. “Industrial demand, especially for lead-acid batteries, should not be underestimated,” JPMorgan analysts said.
Last month, Hyundai Motor Company and Kia Corporation, two South Korean car makers, partnered with Exide to localize electric vehicle (EV) battery production in India.
Following this development, Morgan Stanley also raised its target price for Exide to Rs 485 from Rs 373, citing various growth opportunities for the company. It’s important to note that Exide’s shares have already surpassed this target.
Morgan Stanley believes Exide’s shares could see significant growth over the next ten years. The government’s support for Made in India EVs is expected to help Exide become a leader in local battery cell production.
“Exide’s strong partnerships in the automotive and industrial sectors, along with its early entry into the market, could benefit the company,” Morgan Stanley noted.
At around 12:15 pm, Exide’s shares were trading at Rs 492, up 3.7% from the previous close on the NSE. Exide Industries’ shares have increased by 55% since the beginning of the year.
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