The stock has started moving after consolidating for the last fourteen weeks and has crossed its multiple hurdles at the 162 zone. Recently, the stock has taken support near Rs 155 and is holding well above its 50-DMA.
Shares of Exide Industries dipped 3% to Rs 139, also their 52-week lows on the BSE, after the company reported a 16.2% year-on-year (YoY) decline in net profit at Rs 155 crore for the quarter ended June 30, 2015 (Q1), due to lower sales.
Lower lead prices, stable pricing and value unlocking in its insurance subsidiary could lead to more upsides in Exide Industries. Lead prices, the key raw material in the manufacture of batteries, are down about 7% from September quarter levels.
Extending losses Exide Industries has slipped further to around 3.5% on BSE after the Bank of America -Merrill Lynch downgaded the company's stock to 'neutral' citing erosion of pricing power and growing strength of main rival Amara Raja
Through the past three trading sessions, the Exide Industries stock has gained 10 per cent, as the company is expected to be a major beneficiary of a turnaround in the fortunes of the automobile sector (Exide is the largest supplier of batteries to car
The Exide scrip has gained 24 per cent since May on expectations of better performance of its inverter business, as well as recovery in the automobile sector. Power shortage in key states such as Uttar Pradesh has also helped increase sales.
The Exide Industries stock has been touching its 52-week lows last week and over the last month and a half has lost 19%. The fall is on the back of a poor September quarter performance and earnings downgrades thereafter.
Following better margins, higher other income and lower tax rate, we have increased our EBITDA/PAT estimates by 5.1%/11.2%, respectively, for FY14 and by 4.6%/12.2%, respectively, for FY15. We have valued JDL by assigning equal weight to EV/EBITDA and