Accumulate Exide Industries: Dhawan

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Accumulate Exide Industries on declines, says Sajiv Dhawan of JV Capital Services.

Dhawan told CNBC-TV18, "For Exide Industries the upside target should be about 20% from the current levels. Its obviously the market leader in the auto battery segment with demand very good but 65% of profits are coming from the auto segment, so if there is a slowdown there then obviously the company will be effected."

He further added, "Its valuations are reasonable and not too high at the movement. It's a good proxy also to the auto sector but being an outperformer again and giving a certain 30-40% bump up for the trade of 1.5 years that doesn't seem very likely. Accumulate on declines maybe a stock more for steadier investors with a relatively lower risk appetite."

The company touched its 52 week high Rs 128.10 and 52 week low Rs 37.45 on 12 Jan, 2010 and 12 Mar, 2009, respectively. Currently, it is tradsing -14.09% below its 52-week high and 193.86% above its 52-week low. Market capitalisation stands at Rs 8,804.00 crore.

The company's trailing 12-month (TTM) EPS was at Rs 5.88 per share. The stock's price-to-earnings (P/E) ratio was 18.72. The latest book value of the company is Rs 15.22 per share. At current value, the price-to-book value of the company was 7.23. The dividend yield of the company was 0.55%.