Citi has reiterated its Buy rating on Exide Industries, forecasting a 57% upside with a target price of ₹540 per share, citing better-than-expected Q3 results driven by improved gross margins.
The brokerage highlighted that demand in the replacement auto battery segment remains strong, particularly in the two-wheeler and four-wheeler sub-segments. Additionally, the solar battery segment is witnessing significant growth, supported by government incentives and various solarisation programs. However, demand from automotive OEMs remains muted, reflecting weakness in new vehicle sales. The industrial and infrastructure segments are also experiencing weak demand due to lower government spending.
At the current market price of ₹342.75 per share, Citi sees a strong upside potential in Exide’s stock, driven by its resilient replacement demand and growth in the solar segment.
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