Exide Industries
CMP: RS 80.85
Target price: RS 100
Asit C Mehta has recommended a ‘buy’ rating on Exide Industries with a target price of Rs 100 due to factors like organic and inorganic growth opportunities, a buoyant industrial market and the company’s focus on the replacement market.
According to the brokerage , the company boasts of a 50% share of the industrial battery market in India, which contributes to 40% of its revenue.
Exide is the only manufacturer of high margin submarine batteries, which it supplies to the Indian Navy and to countries like Germany and Russia, adds the report.
The brokerage also adds that the company intends to double its production of automotive and industrial batteries in phases by FY10.
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