Thursday, January 23, 2025

Exide Industries Ltd BUY POSITION CALL

 As of January 23, 2025, Exide Industries Limited's stock is trading at ₹384 

BUY 384 TGT 415/430/475/510/545/585 SL 360

Short-Term View: short term 430  resistance level, indicating a bullish trend. A target price of ₹530 is anticipated in the short term. It's advisable to place a stop-loss at ₹360 to mitigate potential downside risks. 


Long-Term View:

Analysts maintain a positive outlook for Exide Industries over the long term. Nomura has reiterated its 'Buy' rating with a target price of ₹589, indicating a potential upside of approximately 32% from the current market price. This optimism is based on expectations of a 12% growth in industrial demand in the first half of FY25-26.

However, it's important to note that MarketsMojo has downgraded the stock to a 'Sell' rating due to concerns over declining profits and a low return on capital employed at 8.51%. The company has experienced a 3.9% decrease in profits, despite a 58.71% return over the past year.


Conclusion:

While the short-term technical indicators suggest a potential rise to ₹530, and some analysts maintain a positive long-term outlook with target prices around ₹589, there are concerns regarding the company's declining profits and return on capital. Investors should consider these mixed signals and conduct thorough research or consult a financial advisor before making investment decisions

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