Exide Industries powers to all-time high after Morgan Stanley raises target; maintains stance

Exide Industries shares hit an all-time high in the morning deals on Monday (April 15) at Rs 423.8 apiece on BSE. The stock soared after global brokerage Morgan Stanley maintained an 'overweight' rating and raised the target to Rs 485 apiece from Rs 373 apiece. 

At around 10:38 a.m., shares of Exide Industries traded 3.04 per cent, or Rs 12.1, higher on BSE at 409.8 apiece. The market capitalisation of the company stood at Rs 34,833 crore at around the same time. 

Morgan Stanley believes the stock could rise significantly over the next 10 years and the company can become a leading player in battery cell localisation.

Moreover, the government's support for "Made in India" Electric Vehicles (EV), strong auto and industrial customer tie-ups, and tech tie-ups, will also favour the company's growth. 

As per the report, the addressable Total addressable market (TAM) which demonstrates the entire revenue opportunity that exists within a market for a product or service, for Exide could rise sharply. The brokerage estimates the TAM at 150GWh/US $13 billion by 2030 for India's lithium battery segment.

Further, it reckons that the Hyundai and Kia contract validates capabilities and a multi-year contract is likely. In the scale-up phase, battery stocks tend to trade at 4x-6x P/B, implying Exide's price could nearly double over 12 months.

Exide offers solutions in areas of equipment selection, battery sizing, optimum room layout, installation, operation, and maintenance. Exide boasts of a distribution network and service that is continuously monitored and kept contemporary through evolving life cycles and is always ahead of the competition.

Exide Industries share price: Past performance

In a year, shares of have given a multi-bagger return of over 118 per cent against Nifty50's rise of over 26 per cent. 

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