Exide Industries Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO’s 'Sell' rating for Exide Industries Ltd indicates a cautious stance for investors considering this stock. This rating suggests that the stock is expected to underperform relative to the broader market or its sector peers in the near to medium term. Investors should carefully weigh the risks and consider alternative opportunities before committing capital. The rating was last revised on 22 Dec 2025, reflecting a slight improvement from a previous 'Strong Sell' grade, but still signalling concerns about the company’s near-term prospects.

Here’s How Exide Industries Looks Today

As of 03 January 2026, Exide Industries is classified as a midcap company operating within the Auto Components & Equipments sector. The stock has delivered mixed returns recently, with a 1-day gain of 1.29% and a 1-week increase of 0.79%. However, longer-term performance remains subdued, with a 1-month decline of 2.77%, a 3-month drop of 6.88%, and a 1-year negative return of 14.26%. This contrasts with the broader BSE500 index, which has generated a positive 5.35% return over the same one-year period, highlighting the stock’s underperformance relative to the market.

Quality Assessment

Exide Industries currently holds a 'good' quality grade, reflecting stable operational fundamentals and a reasonable business model. Over the past five years, the company’s net sales have grown at a modest annual rate of 5.12%, while operating profit has expanded at 7.92% annually. Although these growth rates indicate some resilience, they fall short of the robust expansion seen in higher-quality peers within the auto components sector. Additionally, recent quarterly results have been disappointing, with the September 2025 half-year showing a return on capital employed (ROCE) of just 8.11%, one of the lowest in recent periods. Profit after tax (PAT) for the quarter stood at ₹171.94 crores, marking a decline of 18.9% compared to the previous four-quarter average, while PBDIT was also at a low ₹391.42 crores. These figures suggest challenges in maintaining profitability and operational efficiency.

Valuation Considerations

The valuation grade for Exide Industries is currently 'expensive'. The stock trades at a price-to-book (P/B) ratio of 2.1, which is a premium relative to its historical averages and peer group valuations. This elevated valuation is not fully supported by the company’s return on equity (ROE), which stands at a modest 5.4%. Investors should be cautious as the stock’s premium pricing may limit upside potential, especially given the recent decline in profits by 5.7% over the past year. The combination of expensive valuation and subdued profitability metrics suggests limited margin of safety for new investors.

Financial Trend Analysis

The financial trend for Exide Industries is currently negative. Despite some short-term gains, the company’s earnings trajectory has weakened, with falling PAT and operating profits in recent quarters. The subdued ROCE and ROE metrics further underline the challenges in generating adequate returns on invested capital. This negative trend is a key factor influencing the 'Sell' rating, signalling that the company may face headwinds in improving its financial health in the near term.

Technical Outlook

The technical grade for Exide Industries is currently 'bearish'. This reflects recent price action and momentum indicators that suggest downward pressure on the stock price. Despite a small rebound in the last day and week, the stock has lost value over the past month and quarter, indicating a lack of sustained buying interest. Technical weakness often signals investor caution and can precede further declines if not reversed by positive catalysts.

Comparative Performance and Market Context

Exide Industries has underperformed the broader market significantly over the past year. While the BSE500 index has returned 5.35%, the stock has declined by 14.26%. This divergence highlights the relative weakness of the company’s shares and suggests that investors have favoured other opportunities within the auto components sector or the wider market. The stock’s negative returns, combined with deteriorating financial trends and expensive valuation, reinforce the rationale behind the current 'Sell' rating.

What This Means for Investors

For investors, the 'Sell' rating on Exide Industries Ltd serves as a cautionary signal. The combination of modest growth, negative financial trends, expensive valuation, and bearish technical indicators suggests that the stock may face continued challenges in delivering positive returns. Investors currently holding the stock should consider reviewing their positions in light of these factors, while prospective buyers might prefer to wait for clearer signs of financial recovery or valuation correction before entering.

It is important to note that the rating and analysis are based on comprehensive evaluation of quality, valuation, financial trends, and technical outlook as of 03 January 2026. Market conditions and company fundamentals can evolve, so ongoing monitoring is essential for informed investment decisions.

Company Profile Summary

Exide Industries Ltd is a midcap player in the Auto Components & Equipments sector, known primarily for its battery manufacturing and related products. The company’s market position and operational footprint provide a foundation for steady business, but recent financial performance and market sentiment have weighed on its stock price. Investors should consider sector dynamics and competitive pressures when assessing the company’s future prospects.

Summary of Key Metrics as of 03 January 2026

• Mojo Score: 30.0 (Sell Grade)


• Market Cap: Midcap


• 1-Year Stock Return: -14.26%


• Return on Capital Employed (ROCE): 8.11% (lowest recent half-year)


• Return on Equity (ROE): 5.4%


• Price to Book Value: 2.1 (expensive valuation)


• Net Sales Growth (5 years CAGR): 5.12%


• Operating Profit Growth (5 years CAGR): 7.92%

These figures collectively underpin the current 'Sell' rating and provide a comprehensive view of the company’s financial health and market standing.

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