Exide Industries achieved consecutive 52-week highs following a partnership deal with Hyundai Motors Company and Kia Corporation for electric vehicle (EV) battery production in India.
On April 9, the two South Korean automotive giants announced a collaboration with Exide Energy Solutions Ltd, a subsidiary of Exide Industries, to localize EV battery manufacturing in India.
This partnership marks a significant advancement in India’s EV sector, enhancing Exide Industries’ market presence and highlighting its vital role in meeting the growing demand for EV components in the country.
The MOU underscores Hyundai and Kia’s commitment to localizing EV battery production, particularly focusing on lithium-iron-phosphate (LFP) cells, aligning with their ambitious EV plans for the Indian market.
Stock Performance in last one year
In terms of stock performance, Exide Industries shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 18.59% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 48.66%, indicating a strong upward trend.
Year-to-date, Exide Industries shares have surged by 19.32%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 11.77% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
Analyst on Exide Industries
Commenting on the Exide Industries Sonam Srivastava, Founder and Fund Manager at Wright Research said that Exide’s recent surge to a 52-week high can be attributed to a confluence of factors. Firstly, the burgeoning electric vehicle (EV) market in India has investors excited about Exide’s potential as a key player.
Their partnership with Hyundai and Kia for EV battery solutions is a prime example. Secondly, the strong performance of the broader battery sector, up 8.4%, is buoying Exide’s stock. Finally, Exide’s own robust financial performance, with over 100% growth in the past year, underscores investor confidence.
“Looking ahead, the near-term outlook for Exide remains positive. The EV sector is expected to witness continued growth, benefitting Exide. However, long-term sustainability will depend on Exide’s ability to capitalize on these opportunities and navigate the competitive EV battery landscape,” added Sonam Srivastava, Founder and Fund Manager at Wright Research.
Commenting on the same Osho Krishan, Sr. Analyst- Technical and Derivatives Research at Angel One said Exide Industries has soared nearly 20 percent in the current week, showcasing a major breakout from the 350 subzone.
Krishna also added that post the recent development, there seems to be a probability of some profit booking; hence, it is advisable to avoid complacency and maintain a cautious stance in the counter. The undertone is certainly bullish and any dip towards 360-350 should augur well for the buyers from short to medium-term time frame.
