Stock Hits New Peak: Investors cheer as automobile company shares soar 23 per cent in just one month!
Strong auto sales to boost OEM and aftermarket businesses.
On Friday, Shares of Exide Industries hit an over four-year high of Rs 257.40, up by 0.70 per cent on the BSE intra-day trade on a positive business outlook. The shares of a business that manufactures auto components and equipment were trading at their highest level since January 2019. It has increased by 23 per cent in the last month, compared to a 3.8 per cent increase in the S&P BSE Sensex.
The company anticipates a surge in the order book in FY23 as it expands its products and services in key sectors like Industrial UPS, traction, and solar. The HUPS market is expected to grow at an accelerated pace due to technology advancements, power backup demand, factory automation, and IT sector expansion. The government's renewable energy vision and MNRE's target of 40GW rooftop solar solutions offer significant opportunities for the company.
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Exide Industries Ltd is primarily engaged in the manufacturing of Storage Batteries and allied products in India. The company is a leader in energy storage and management solutions. It is the only company in the world manufacturing the lead-acid industry’s most comprehensive range of products and services.
At TTM, the company shares are trading at a PE of 26.2x, which is slightly lower than its industry PE of 28.9x. The company has maintained a three-year healthy ROE and ROCE of 22.4 per cent and 11.6 per cent, respectively.