Exide Industries, a prominent battery manufacturer, is poised for significant growth over the next decade, according to global brokerage Morgan Stanley. The firm predicts that Exide could emerge as a leading player in localizing battery cell production. As a result, Morgan Stanley has raised its target price for Exide Industries shares by over 30%, now set at ₹485, indicating a potential 22% upside from the recent closing price of ₹397.70 on April 12.
This year, Exide Industries’ stock has drawn considerable attention, boasting a year-to-date return of 23%, outperforming the Sensex benchmark, which rose by only 2.7% during the same period. Over the past year, Exide has enriched investors by 111%, while the Sensex gained 24%.
Morgan Stanley points to several factors that could bolster Exide’s prospects, including government support for ‘Made in India’ electric vehicles, strong partnerships with auto and industrial customers, technological collaborations, and an early advantage in the market. The brokerage anticipates a significant increase in the total addressable market for India’s lithium battery segment, projecting it to reach 150GWh/US $13 billion by 2030.
Furthermore, Morgan Stanley highlights Exide Industries’ partnership with South Korean auto giants Kia Corporation and Hyundai Motor’s subsidiary for electric vehicle battery localization in India as a significant validation of its capabilities, potentially leading to a long-term contract.
Earlier assessments from JPMorgan also underscored Exide Industries’ ability to secure partnerships with global original equipment manufacturers (OEMs), which eased investor concerns. JPMorgan suggested that additional order wins could be imminent as the company engages in discussions with multiple OEMs.
However, Kotak Institutional Equities holds a cautious stance, issuing a ‘Sell’ rating on the stock due to what it perceives as expensive valuations. The domestic brokerage revised its target price to ₹270 on April 8.
Exide Industries has disclosed plans to invest ₹4,500-5,000 crore in 6 GW battery capacity, with ₹1,820 crore already invested. This indicates that the lithium business is valued at 1 times its FY26 estimates of price-to-book ratio (P/B ratio).
