In Friday's early morning trading, Exide Industries' shares rose as much as 3.83 percent to Rs 456.80 per share on the BSE. Following the signing of a legally binding contract with Hyundai Motor India to supply lithium-ion cells and battery packs for Hyundai's EVs in India, Exide Industries' stock price skyrocketed.
In an exchange filing on Thursday, the company stated, "We would like to notify you that Exide Industries has signed a legally binding term sheet (Term Sheet) with Hyundai Motor India Limited, a member of the Hyundai Motor Company group, on December 19, 2024, to enter into definitive agreements pertaining to the production and supply of battery cells for HMJL's electric vehicles dedicated to the Indian market."
The business added that it expects to make money by selling the goods at prices that are decided in accordance with the process outlined in the term sheet and, subsequently, the final agreements.
In terms of finances, Exide Industries reported a 14.14% year-over-year (Y-o-Y) drop in net profit for the second quarter of the fiscal year 2024–25 (Q2FY25) from Rs 269.4 crore to Rs 231.28 crore. Nonetheless, the profit rose by 5% on a quarterly basis.
Compared to the 11.8 percent recorded in the same quarter last year, the company's EBITDA margin for the current quarter was somewhat lower at 11.3%.
In contrast, Exide Industries' stock has underperformed the market in the equity space, rising 12% over the last six months and declining 9% over the past year. Comparatively, the BSE Sensex has increased by 2.8 percent during the past six months and 10.8 percent over the past year.
The market capitalization of the company is Rs 37,582.75 crore. At an earnings per share of Rs 12.96, its shares are selling at a price to earnings multiple of 34.12 times.
The company's shares were up 0.49 percent at Rs 442.10 a share at 11:11 AM. In contrast, the BSE Sensex was up 0.03 percent at the level of 79,245.16.
