Shares of Exide Industries Ltd on Monday soared 19.21 per cent to scale their one-year high of Rs 383.50. The stock eventually settled 17.19 per cent higher at Rs 377. Today's sharp upmove in the share price came after the company announced that its wholly-owned unlisted subsidiary (Exide Energy Solutions Ltd) has signed a non-binding memorandum of understanding (MoU) with Hyundai Motor Company (Hyundai Motors) and Kia Corporation (Kia) for strategic co-operation in India's EV (electric vehicle) market.
According to this MoU, both the parties will work together for development, production and supply of battery cells for Hyundai Motor's electric vehicles dedicated to the Indian market, it stated.
"India is recognized as a highly promising automotive market worldwide and the country is rapidly emerging as a critical player in the production and sales of EVs. Realizing the strategic importance of the Indian market, Hyundai Motor and Kia are taking the lead in the Indian market by introducing its EV models to establish itself as the frontrunner in the Indian automotive industry," a joint release mentioned.
A few analysts largely remained positive on the counter. However, one of them suggested booking profits at current levels.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, The stock looked strong on daily charts. It may hit Rs 410 in the near term. Keep stop loss placed at Rs 365.
AR Ramachandran from Tips2trades said, "Exide Industries is bullish but also very overbought on daily charts with next resistance at Rs 387. Investors should keep booking profits as a daily close below support of Rs 351 could lead to a downward target of Rs 296 in the near term."
As of December 2023, promoters held a 45.99 per cent stake in the storage battery manufacturing company.