These Battery Stocks Have Gained Momentum Since Yesterday

  • Stock Market News
These Battery Stocks Have Gained Momentum Since Yesterday
Credit: © Reuters.

By Aditya Raghunath -- The last couple of trading sessions have seen battery stocks like Exide Industries (NS: EXID ), Eveready Industries India Ltd (NS: ERDY ), Indo National Ltd (NS: INNL ), Panasonic Energy India Co Ltd (BO: PANB ) and HBL Power Systems Ltd (NS: HBLS ) zoom up between 2-15%. This move comes after news that the world’s most valuable carmaker and most famous electric automobile company, Tesla, will begin Indian operations in 2021.

Exide Industries went up 2.87%, Eveready was up 4.76%, Indo-National zoomed 11.43%, Panasonic Energy ended up 8.47% and HBL Power gained 15.49% at the end of trading on December 29. But is this rally justified?

The simple answer is no. While Tesla Inc (NASDAQ: TSLA ) has said that it will begin operations in India next year, there is zero clarity on the size or type of the opportunities that Indian battery makers can expect. This is a purely sentiment-based rally. 

From all the battery makers listed above, brokerages have been bullish on Exide Industries, and this was before the Tesla news broke. Exide is the largest battery maker in the organized space with a market share of around 55%.

Prabhudas Lillladher has given Exide a target price of Rs 234, an upside of 22% from its current price of Rs 191.7. Sharekhan has given it a target of Rs 229. Edeleweiss has also recommended Exide with a target of Rs 220.

Exide reported sales of Rs 4,011.39 crore for the quarter ended September 30, 2020, up 6.16% from the corresponding period in 2019. It reported a net profit of Rs 256.26 crore for the September 2020 quarter.

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  • Akhilan Naganathan @Akhilan Naganathan
    Dry cell batteries are moving up,because of lesser import and higher plant utilisation , which already reflected in the result .Any remote (tv,ac clock.small instrument...) needs batteriey.
    Like 1

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