Pick Exide Industries, says Prabodh Agarwal

Pick Exide Industries, says Prabodh Agarwal, Head of Institutional Research, IIFL.

Agarwal told CNBC-TV18, "Exide Industries did not have a very strong last few quarters. Our belief here is that the replacement market for two wheeler and four wheeler batteries is going to be very strong given the strong sales, which happened two-three years back as the replacement cycle kicks in with a two year lag."
He further added, "The Original Equipment Manufacturer (OEM) market has been weak, but that is also expected to pick up. So we feel these are the good times to pick up stocks like Exide. If you look at last 8-10 years history of Exide they have been consistently performing and have given very good returns and at times like these when they had a couple of bad quarters the valuations are much more reasonable and it is probably a good time to pick up the stock."