Buy Exide Industries Ltd., target Rs 204.0 : Geojit BNP Paribas Financial Services

Geojit BNP Paribas Financial Services has Buy call on Exide Industries Ltd. with a target price of Rs 204.0. The current market price of Exide Industries Ltd. is 170.95. Time period given by analyst is year, when Exide Industries Ltd. price can reach defined target. Exide Industries is the leader in storage battery business with a market share of 60 per cent in India. Geojot BNP Paribas expects automotive demand to strengthen during FY17E through better monsoon and implementation of 7th pay commission and further, the introduction of GST will reduce competition from unorganized players. The technology up gradation (capex Rs4.5bn), rebound in automobile segment, and concentration on the more profitable segment will help to improve margins from 15 per cent in FY16 to 16.3 per cent by FY18E.