Exide Industries Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Position and Bullish Technical Factors.

Exide Industries, a leading battery manufacturer in India, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown a low Debt to Equity ratio of 0.02 times, indicating a strong financial position.
Technically, the stock is in a Mildly Bullish range and has shown improvement from a Sideways trend on 22-Nov-24. The MACD and KST technical factors are also Bullish, further supporting the 'Hold' rating.

One of the reasons for this upgrade is the high institutional holdings at 30.28%. These investors have better capability and resources to analyze the fundamentals of companies, making their investment decisions more reliable.

Exide Industries has also shown consistent returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. However, the company has a poor long-term growth rate, with an annual operating profit growth of -0.07% over the last 5 years.

In the latest quarter, the company's results were flat, with the ROCE (HY) and Operating Profit to Net Sales (Q) at their lowest levels of 8.51% and 10.61%, respectively.

With an ROE of 6, the stock is currently trading at an expensive valuation with a price to book value of 2.6. This is higher than its average historical valuations, indicating a premium in its current market price.

Despite generating a return of 51.30% in the last year, the company's profits have fallen by -3.9%. This could be a cause for concern for investors, but the overall financial health and institutional support of Exide Industries make it a 'Hold' for now.