Exide Industries may rally 5% further: SP Tulsian

Exide Industries may rally 5% further from current levels, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, “Amara Raja Batteries is definitely a good stock but since the company has declared its June quarter results which have been so good and so excellent and in fact if you compare the PE multiple with Exide industries, Exide Industries has a much larger scale plus they have some other business 50 percent in insurance stake, debt free company and all that. But still the differentials between both are catching up.”
He further added, “Exide Industries, which is now ruling at 14-15 PE multiple while Amara Raja is ruling at maybe 11-10 PE after this run up, I think it has reached its value. Maybe a further upside of 5% can be seen but I won’t be surprised to see a correction by way of profit booking in Amara Raja which can make it fall to 15% maybe in next one month or so which will make a very good entry point by the investor at that point of time. So caution at this stage, I won’t be recommending any kind of buy in Amara Raja at this level.”