Exide Industries shares hit fresh 52-week high

Shares of Exide Industries rose 4% to hit a fresh 52-week high on Monday as global brokerage Morgan Stanley raised the battery maker's target price to ₹485 from ₹373.

The stock opened at ₹401 against its previous closing price of ₹398.15 on Friday. The counter hit an intraday high of ₹423.65, taking the company’s market cap to over ₹35,000 crore.

Shares of Exide Industries have gained 29% over the past six trading sessions. The stock is up 120% over the past year.

In its latest note, Morgan Stanley says Exide shares can rise significantly over the next decade and the company could become a leading player in battery cell localisation.

Its strong automobile and industrial tie-ups, and early mover advantage could also play in Exide Industries' favour, the brokerage notes.

Last week, Exide signed deals with Hyundai Motor Company and Kia Corporation to localise electric vehicle battery production for the South Korean automakers.

Hyundai Motor and Kia, as part of their EV expansion plans for the Indian market, aim to localise EV battery production, focusing on lithium-iron-phosphate (LFP) cells.

Exide Energy Solutions Limited (EESL), the wholly owned unlisted subsidiary of Exide Industries, is setting-up its multi-giga lithium-ion battery manufacturing facility at Bengaluru, Kamataka, and it is in the process of meeting several potential customers for strategic cooperation in the Indian EV market.

"The non-binding MOU entered by EESL is a step towards this effort," the company says.

“India is a key market for vehicle electrification due in part to the government’s carbon neutrality goals, which makes securing cost competitiveness through localised battery production crucial,” said Heui Won Yang, president and head of Hyundai Motor and Kia’s R&D Division. “Through this global partnership with Exide Energy Solutions Ltd., we will gain a competitive advantage by equipping Hyundai Motor and Kia’s future EV models in the Indian market with locally produced batteries.”

Exide Industries has over 75 years of experience and market leadership in lead-acid batteries. Exide Energy Solutions, its wholly owned subsidiary, was formed in 2022 to focus on the making of lithium-ion cells, modules and packs incorporating a portfolio of multiple chemistries and form factors.

Brokerage ICICI Securities, in its last month's coverage report on the stock, assigned a 'BUY' rating to Exide Industries, saying it is the early one to take tangible steps in the new age Li-ion battery business, thereby addressing the risk of EV transition at its base business.

Last week, Exide entered into an agreement for acquiring 26% equity stake in Clean Max Arcadia Private Ltd, a Special Purpose Vehicle (SPV) promoted and incorporated by Clean Max Enviro Energy Solutions Pvt Ltd for generation and supply of solar power.

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