- Citi raised Exide's target price to ₹510, citing strong Q1FY27 demand and Li-ion prospects
- Exide shows robust demand in automotive and industrial segments across rural and urban markets
- Lithium-ion cell unit nearing commercial production, seen as a key growth catalyst by Citi
Brokerages present contrasting outlooks on Exide Industries following a strong performance in Q1FY27. While Citi has turned increasingly bullish on the battery maker's market demand and upcoming Lithium-ion cell commercialization, Kotak Securities remains cautious over margin pressure and capital intensity.
Citi Maintains 'Buy', Sees Strong Demand and Li-Ion Potential
Global brokerage firm Citi reiterated its 'Buy' rating on Exide Industries, hiking its target price significantly to ₹510 from ₹410.
- Optimistic Management Outlook: Citi highlighted strong management guidance post a robust Q1FY27 performance.
- Broad-Based Demand: The company is experiencing healthy demand momentum across both rural and urban markets in its core automotive and industrial segments.
- Commercialization Horizon: Exide's flagship Lithium-ion (Li-ion) cell manufacturing unit is rapidly approaching its commercial production phase, acting as a major key catalyst.
Key Triggers to Watch: Citi noted that the market will now closely track further updates on customer wins, order book commitments, and revenue visibility from the new Li-ion cell business.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
Kotak Retains 'Sell', Cites Return Ratio & Capex Pressure
Conversely, Kotak Securities maintained a 'Sell' rating on the stock, though it raised its target price marginally to ₹325 from ₹300.
- Steady Lead-Acid Performance: Kotak acknowledged that Exide's core lead-acid battery business continues to deliver stable and resilient earnings, while confirming that the company is well-positioned to ride the long-term EV trend.
- Return Ratio Headwinds: Despite operational stability, Kotak warned that profitability and return ratios (RoE and RoCE) will likely remain under pressure over the near-to-medium term.'
- Structural Concerns: Kotak cited several structural risks, including:
-High capital expenditure (capex) requirements for scaling the advanced chemistry cell unit.
=The highly commoditized and B2B nature of the battery business, which offers limited pricing power.
=Reliance on global technology partners for technical know-how.
The Road Ahead for Investors
The divergence in analyst views highlights the dual nature of Exide Industries' current transition. While the company's legacy lead-acid market generates consistent cash flow and demand across urban and rural markets, its long-term re-rating hinges on the execution, margin profile, and order traction of its high-capex Lithium-ion cell division.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.