10 Apr , 2024 By : Debdeep Gupta
Shares of Exide Industries Limited traded over a percent lower to Rs 378 on April 10 morning after investors rushed to book some profits after the scrip rallied 22 percent across three sessions.
The company said it has acquired a 26 percent equity stake in Clean Max Arcadia Private Ltd for Rs 5.34 crore.
"The objective of the investment in the SPV is to promote renewable energy on a long-term basis by qualifying as a captive consumer for solar capacity of 14.85 MWp for our factory situated in Bawal in the state of Haryana," Exide said in a regulatory filing.
Clean Max Arcadia, a special-purpose vehicle promoted and incorporated by Clean Max Enviro Energy Solutions, is dedicated to generating and supplying solar power.
Exide shares have been making positive strides in the market, rallying a massive 22 percent in the last three days. The positive sentiment stems from South Korean auto majors Hyundai Motor Company (HMC) and Kia Corporation announcing a partnership with the homegrown battery maker for electric vehicle battery localization in the country.
After the development, JPMorgan issued an 'overweight' tag on the stock. They believe that the company's success in securing partnerships with global Original Equipment Manufacturers (OEMs) helps alleviate investor worries. Additionally, they anticipate that Exide could secure more orders as discussions with various OEMs are ongoing.
The global brokerage has increased the valuation of Exide's EV battery business from Rs 25 per share to Rs 172 per share given the increased confidence post the Kia-Hyundai tie-up. Not just that, it has further hiked the target price to Rs 480 from Rs 330. This is an upside of 25 percent from the previous close of Rs 384.
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