Shares of battery maker Exide Industries Ltd were trading over 5 percent higher at Rs 498 apiece in the afternoon trade on May 27 after JPMorgan raised the price target to Rs 520 as it sees further upside in the counter.
With an 'overweight' call on Exide, the new target price implies an upside potential of 10 percent from the current market levels. The previous target price was Rs 480.
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The brokerage believes that the company is well-positioned to deliver across all business verticals. "Industrial demand, especially in lead acid batteries, should not be underappreciated," analysts at JPMorgan said.
Last month, two South Korean auto majors Hyundai Motor Company (HMC) and Kia Corporation announced a partnership with the homegrown battery maker for electric vehicle battery localisation in the country.
Also read: Exide Industries: What is next after the huge rally?
Post the development, Morgan Stanley raised the target price of Exide stock to Rs 485 from Rs 373 after citing multiple levers for growth for the company. It is imperative to mention that Exide shares have breached the price target.
The international brokerage is of the view that the battery manufacturing company's shares could rise significantly over the next ten years. Furthermore, the government's support for Made in India EVs can help the company become a leading player in battery cell localisation.
"The company's strong automobile and industrial tie-ups, and early mover advantage could also play in Exide Industries' favor," Morgan Stanley said in a note on the company.
At about 12:15 pm, shares of the company were trading at Rs 492, up 3.7 percent from the previous close on the NSE. Exide Industries' shares have been on a roll, surging 55 percent since the start of the year.
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