Stock pick of the week: Reasons why Exide Industries is expected to come back strong in 2021-22
Analysts are happy about a small profit in the first quarter since the street was expecting a loss.
Synopsis
Exide is expected to gain further market share from weaker regional and unorganised players due to its strong balance sheet, wide network and ability to launch new technologies. It is currently trading at a low valuation, which has made the company a favourite of analysts.
Exide Industries is expected to come back strong in 2021-22 after reporting muted numbers in 2020-21. Analysts are getting bullish on the company despite a 44% fall in revenues and 80% fall in net profit during the first quarter of 2020-21. There are several reasons for the optimism. Exide’s revenue fall in the first quarter was less than the market expectations. While overall volume number was weak due to lower production of vehicles and the
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