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Reasonable upside for Exide Industries

October 28th, 2010

India’s leading producer of storage batteries, Exide Industries, is getting increased coverage by brokerage houses that have recently seen the script to be having some reasonable upside left. The business model of the company, pricing power and capacity up gradations are few reasons why investors should consider trying out this share.

In its October 5, 2010 report, Religare Broking Research has given a buy rating to the script for investment purpose. They expect that Exide could deliver a 21% revenue CAGR in FY10-FY12.

Deutsche Bank has initiated coverage to the stock with a Buy recommendation. In its August 25, 2010 report, they gave the script a 12-month target of Rs. 180.

Daiwa Capital, in its September 24, 2010 report has upgraded the script from Hold to Buy and has given a target of Rs 178 to the script.

Spark Capital, in its October 14, 2010 report, made Exide as an Outperformer and has given a target of Rs. 189.

Angel Broking says the script can be Accumulated for a target of Rs. 171, according to its report dated September 29, 2010

Exide closed at Rs. 154.90 on NSE on October 27, 2010. Its 52-week high is Rs. 179.80 and 52-week low is Rs. 102.00

The company had Rs. 400 cr capex plan for the year. It reported Rs 1,127.20 crore turnover for quarter ended Sep 2010.

Entry Filed under: Equity Markets, Automobile