Exide Industries Ltd is Rated Sell

Current Rating Overview

MarketsMOJO currently assigns Exide Industries Ltd a 'Sell' rating, reflecting a cautious stance on the stock. This rating indicates that investors should consider reducing exposure or avoiding new purchases at present, based on a comprehensive evaluation of the company’s quality, valuation, financial trends, and technical indicators. The rating was adjusted from a 'Strong Sell' to 'Sell' on 22 December 2025, with the Mojo Score improving slightly from 28 to 30. Despite this modest improvement, the overall outlook remains negative.

Quality Assessment

As of 14 January 2026, Exide Industries maintains a 'good' quality grade, signalling that the company has a stable operational foundation. Over the past five years, net sales have grown at a modest annual rate of 5.12%, while operating profit has increased at 7.92% annually. These figures suggest steady but unspectacular growth. However, recent quarterly results have shown signs of strain, with the September 2025 half-year reporting a return on capital employed (ROCE) of just 8.11%, which is relatively low for the sector. Additionally, the quarterly profit after tax (PAT) stood at ₹171.94 crores, marking an 18.9% decline compared to the previous four-quarter average. Operating profit before depreciation and interest (PBDIT) also hit a low of ₹391.42 crores in the same period. These indicators point to challenges in maintaining profitability momentum.

Valuation Considerations

The valuation grade for Exide Industries is currently 'expensive'. The stock trades at a price-to-book value of 2, which is a premium relative to its peers’ historical averages. This elevated valuation is not fully supported by the company’s financial performance, as reflected in a return on equity (ROE) of just 5.4%. Investors should note that despite the premium pricing, the stock has underperformed the broader market over the past year. Specifically, while the BSE500 index has delivered a 9.02% return in the last 12 months, Exide Industries has generated a negative return of -10.17%. This divergence highlights the risk of overpaying for a stock that is currently struggling to deliver growth and profitability.

Financial Trend Analysis

The financial trend for Exide Industries is rated 'negative'. The latest data as of 14 January 2026 shows a decline in profitability and subdued growth prospects. Over the past year, the company’s profits have fallen by 5.7%, and the stock price has declined by over 10%. The half-year results from September 2025 underline this trend, with key profitability metrics weakening. The company’s operating environment in the auto components and equipment sector remains challenging, with competitive pressures and cost inflation impacting margins. These factors contribute to the cautious financial outlook and justify the current 'Sell' rating.

Technical Outlook

From a technical perspective, Exide Industries is graded as 'bearish'. The stock has experienced consistent downward pressure, reflected in recent price movements. Over the last month, the stock has declined by 7.71%, and over three months by 12.17%. The one-week and one-day changes also show negative trends, with declines of 4.03% and 0.29% respectively as of 14 January 2026. This technical weakness suggests limited near-term upside and reinforces the recommendation to avoid initiating new positions at this time.

Implications for Investors

For investors, the 'Sell' rating on Exide Industries Ltd signals caution. The combination of expensive valuation, negative financial trends, and bearish technical indicators outweighs the company’s stable quality grade. While the stock has shown some improvement from a 'Strong Sell' rating, the current fundamentals do not support a positive outlook. Investors should carefully consider their portfolio exposure and monitor the company’s performance closely before making investment decisions.

Sector and Market Context

Exide Industries operates within the Auto Components & Equipments sector, a space currently facing headwinds from supply chain disruptions and fluctuating demand in the automotive industry. The midcap company’s market capitalisation places it in a competitive bracket where growth expectations are high, yet recent performance has lagged behind sector averages. The broader market’s positive returns over the past year contrast sharply with Exide’s underperformance, underscoring the need for investors to weigh sector dynamics carefully when considering this stock.

Summary of Key Metrics as of 14 January 2026

To summarise, the key financial and market metrics for Exide Industries Ltd are as follows:

• Mojo Score: 30.0 (Sell grade)


• Market Cap: Midcap


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


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


• ROCE (Half Year Sep 2025): 8.11%


• PAT (Quarterly Sep 2025): ₹171.94 crores, down 18.9%


• ROE: 5.4%


• Price to Book Value: 2.0


• Stock Returns (1 Year): -10.17%


• BSE500 Returns (1 Year): +9.02%

These figures collectively illustrate the challenges facing Exide Industries and provide the rationale behind the current 'Sell' rating.

Looking Ahead

Investors should continue to monitor Exide Industries’ quarterly results and sector developments closely. Improvements in profitability, valuation alignment with peers, or a shift in technical momentum could warrant a reassessment of the rating in the future. Until such changes materialise, the cautious stance remains appropriate.

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