New Delhi: Exide industries share surged 52-week high on Monday after Exide Energy Solutions Ltd signed an MoU with Hyundai and Kia Motors for electric vehicle (EV) expansion plans.
By the end of the Monday trading session, the Exide Industries share closed at 377.15 after surging more than 17 per cent.
"Exide Industries has successfully regained its all-time high trajectory following the announcement from Hyundai and Kia to join forces for EV battery production.
The automobile sector has been demonstrating robust traction over the past couple of weeks.
Exide Industries has displayed significant long built-up, indicating strong investor confidence," said Rajesh Palviya, SVP Research (Head Technical & Derivative), Axis Securities Ltd.
He further added, "Analyzing the short-term structure, this rally may extend further towards the range of 400-410 in the short term. Investors may consider holding positions with a stop-loss set at 358."
With the expansion of their EV plans for the Indian market, Hyundai Motor and Kia aim to localize their EV battery production, specifically focusing on lithium-iron-phosphate (LFP) cells.
The company release said that the move will position them as the pioneers in applying domestically produced batteries in their upcoming EV models in the Indian market.
India is recognized as a highly promising automotive market worldwide and the country is rapidly emerging as a critical player in the production and sales of EVs.
"The EV ecosystem has transformed the heavy manufacturing-based auto companies' valuations into that of software services companies.
Any tie-up that Indian auto ancillary companies announce with international players in the EV value chain leads to a recalibration of their valuations in line with that of global EV value chain players," said Ajay Bagga, Banking and Market Expert.
Realizing the strategic importance of the Indian market, Hyundai Motor and Kia are taking the lead in the Indian market by introducing their EV models to establish themselves as the frontrunners in the Indian automotive industry.
