Exide's Analysis and recommendation is purely for knowledge purpose and not to consider as any financial advice. Data are collected from various sources and analysed.For testing accuracy paper trading can be done.
Status: Positive
CMP: 197
Target: 220-230
About the Company:
Exide Industries is a storage battery producing company and a life insurance company in India. It manufactures automotive and industrial lead-acid batteries. It has plants in India and Sri Lanka. In 2013, Acquisition of 26% shares of ING Vysya Life Insurance Company adding a total of 100% stake leading to "Exide Life Insurance Company
Analysis:
Quarterly Performance:
The Quarterly performance of Exide battery is picking up. Compared to the past quarters the overall revenue has increased. We should understand that the company has also incurred more costs than the previous quarters. May be the hike in costs can be related as a move of management to increase revenues. Apart from that the overall increase in cost of materials is also a concern. The company has performed well comparing to the peers and is expected to rise up soon.
Other facts:
The steady increase in profit and other revenues are good news for the share holders. The overall efforts from the management is good and will keep the performance in track. The increasing expenditure is a concern. Exide will be subject to perform as a major supplier for big corporations like Tata. The future also seems pretty bright for exide. If the auto sector is revived from current levels the chances of exide crossing 250 is very near.
The Growing rate of Exide and the performance of the battery industry is expected to give more momentum for the stock. Hence giving a positive outlook for the company.
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