Exide share price target 2023, 2024, 2025, and 2030: If you want to invest in Exide share or going to hold for the long term then it is very important for you to know about the PNB share price target.
In this article, we will give you the Exide share price target 2023, 2025, 2024, and 2030 based on the company’s past stock analysis, present and future investments, and technical analysis.
From this Exide share price target article, you will get all the information which you will be able to decide whether you should buy Happiest Minds shares or not.
Exide Share Price Target 2023, 2024, 2025, and 2030
For more than six decades, Exide has been one of India’s most reliable brands, enjoying an unrivaled reputation and recall. Exide’s constant emphasis on innovation, extensive geographic footprint, strong relationship with marquee clients, and steady technology upgradations with global business partners have made it a distinct frontrunner in the lead-acid storage batteries space for both automotive and industrial applications.
Exide has nine factories strategically located all over India out of which 7 factories are dedicated to batteries and the other 2 factories manufacture Home UPS Systems. It is the only company with multi-locational manufacturing units spread across the country and equipped with cutting-edge technology machines.
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Highlights in this financial year
- Exclusive partnerships with major automotive OEMs for upcoming launches
- Entered the US markets with its overseas collaborator East Penn
- Exide digitalized its engagement platforms for channel partners and introduced customized applications and portals, to provide a one-stop solution for every business engagement
- Made significant progress in developing EFB Technology for micro hybrid cars, which is currently in the mobility testing stage
- Exide Industries set up Kolkata’s first 315 kWH Lead Acid technology-based Battery Electric Storage System (BESS) in partnership with CESC Limited
- Exide Industries Lithium-ion JV, Nexcharge, collaborated with Tata Power to setup the country’s first grid connected Lithiumion based Community Energy Storage System (CESS)
- Made significant progress on its digital transformation journey, across organizational functions
- Scaled up its Batmobile service to provide Vehicle On Road (VOR) assistance to a larger customer base across the country.
Electric 2-Wheeler Market
Indian electric 2-wheeler market expected to explode, sparks already flying While the market is considerably small today with ~145K units sold in FY21, signs of explosion are already visible. Sales of high-speed E2W in the first half of FY22 have already surpassed the sales achieved in FY21. We expect the market to conservatively reach at least 2.5-3 million units by FY25 and 6-8 million by FY30, translating into 20-25% penetration of the overall 2-wheeler industry. Most of this demand will come from the metro and urban regions.
With the right push from the government and compelling initiatives from players, the market can potentially expand beyond these estimates and subsequently comprise nearly 50% of the 2-wheeler market. This demand is expected to be driven by both the B2C and B2B segments. B2C demand will stem from consumers using vehicles for intra-city travel. B2B demand, on the other hand, will be majorly from e-commerce platforms, aggregators, courier services, etc., and others as they shift their fleet to E2Ws to leverage the better economics.
Outlook of Electric 2-wheeler Market
Currently, a majority of the market share is held by 2-3 traditional E2W OEMs. However, we expect the market structure to change significantly in the next 5-10 years. A variety of scenarios may play out. Traditional ICE players who have not been aggressive in the E2W segment until now may leverage their strong distribution network to expand in the market quickly.
Neo disruptors, who are generating excitement on their product features and new models of customer engagement, may gain significant share. The long tail of players may grow in the market, even if accompanied by a lot of internal churns. In essence, it is likely that the industry will become more fragmented compared to ICE by FY25
Even though the current E2W market is in a nascent stage of growth, it is well-positioned to explode in the next 5-7 years driven by a push from both the demand and supply sides. This expansion will be accompanied by shifts in models of distribution, models of ownership, models of monetization, and models of customer segmentation. While some disruptions will be driven by OEMs, others will come from new players who will offer unique propositions to carve a niche for themselves.
To establish and maintain their position in the market, players will have to closely monitor the industry as it evolves and continuously innovate to remain relevant. As the EV segment grows, battery manufacturing companies will benefit a lot.
The adoption of Electric cars (E-Cars) globally has witnessed a surge, with sales in the first half of 2021 already surpassing the 2020 sales. Similar trends can be observed in India too. However, this growth is not at the same scale as in other countries. For instance, while the share of Battery Electric vehicles (BEVs) in the total number of passenger vehicles sold in Europe was 5.4%, the same in India was a minuscule 0.2% in FY2020.
However, as per JMK Research’s projections, E-Cars are expected to account for nearly 12% of all passenger cars by FY2026. While positive steps have been taken by the Central government to promote and accelerate the growth of an EV ecosystem in India, recent restructuring in FAME-II policies suggest that the government has shifted its focus on electric 2 wheelers (E2Ws) to generate demand for achieving short-term growth. However, from a long-term perspective, E-Cars are expected to play a pivotal role, especially in the aftermath of the COVID-19 pandemic with a surge in the need for personal mobility.
Over the last four years, the E-Car sales have been driven by two players, namely Tata Motors and Mahindra, which together account for 80% of the total market. These players have single models each, which are available for prices between INR 8 lakh and INR 14 lakhs. However, the absence of options in the affordable segment (Price < Rs. 8 lakhs) could translate to slower adoption of E-Cars.
Other notable barriers to E-Car adoption are range concerns, lack of charging infrastructure, absence of financing mechanisms, and safety concerns among end-users regarding the batteries. This report maps out the present status of the E-Car market in India, studies the key players present in the market, highlights the challenges and barriers to its adoption, analyses the central and state-level policies in place to understand its effects, and gives an outlook to where the E-Car market is headed towards in the future.
Global E-Cars Market
With the lingering threat of climate change overall regions alike, there is an immediate need to decarbonize our countries to minimize its impact. The transport sector is the third biggest contributor to Greenhouse gases (GHG) in India, the majority of which comes from the road transportation sector alone. Switching to electric mobility offers major benefits, with a study2 by International Council on Clean Transport (ICCT) showing that India’s currently registered average-sized E-Cars will emit 19-34% less GHG emissions as compared to their Internal Combustion Engines (ICE) counterparts over the lifetime.
Globally, EVs accounted for 4.2%3 of the total vehicle sales in 2020, signifying a 43% increase in sales as compared to 2019 sales, despite the disruption caused by COVID-19. Europe was the largest market with E-Car sales in 2021, followed by China and the United States of America.
Indian Electric Cars Market Overview
In India, compared to its global counterparts, the growth of E-cars has been particularly slow. The growth of E-cars remained stagnant between 2015 and 2019. However, sales have increased post2019, with a 361.78% y-o-y increase in 2020.
The 2021 registrations, as of July 2021, have further increased, having already crossed the 2020 sales figure. While the growth is impressive, E-cars accounted for a minuscule 0.2% in 2020 of the total passenger vehicle registrations in India. However, going ahead, with the increasing focus on local manufacturing of EV components & batteries, prices are expected to drop further which will allow more number of players to enter this market as well as allow existing players to switch to EV offerings.
JMK Research estimates the share of E-cars to grow to 12% by FY2026, clocking 514,365 units in E-car sales, which translates to a CAGR of 152.94% from FY2021 to FY2026.
Growth Drivers For Electric Cars Adoption
The increasing popularity of E-Cars is due to the many advantages they offer, with the caveat of being environmentally friendly, the biggest advantage being the elimination of E-car is that they eliminate the fuel and maintenance costs associated with traditional ICE cars
Little to No Maintenance
In the case of an ICE vehicle, as it gets old, its engine maintenance costs increase along with the maintenance of other mechanical parts, which can become a huge money sink. In an EV, however, since there is no engine, all these costs are done away with, with essentially no maintenance required, apart from the universal costs such as tires and brake costs. The only significant cost in an EV is the replacement cost of a battery, which usually lasts for 5-7 years on average.
However, even with the battery replacement after the manufacturers’ warranty (usually 8 years) lapses, the overall costs are still lower than that of ICE vehicles.
Challenges Of E-Cars Market
The driving range is a major concern for a consumer when deciding to switch to E-Cars since the range of EVs is lesser than that of traditional ICE cars as depicted in the figure below. Further, charging speed is another parameter closely linked to the range issue. The majority of the present charging infrastructure works on AC Charging, which can take anywhere between 6-12 hours to fully charge a battery depending on its size. In ICE vehicles, fuel filling can be done in minutes, and there is no waiting time when compared to E-Cars.
Lack of Public charging Infrasturcture
Charging station infrastructure for E-cars is the same as petrol pumps for ICE cars. Without an accessible charging station in place, E-Cars will not be able to grow at the rate it is expected to grow. Unlike petrol pumps where vehicles can be refueled in minutes, charging E-Cars can take anywhere from 30 minutes (if charged with fast DC chargers) to as high as 6-12 hours (if charged with AC Chargers as depicted in figure 2.1).
This factor becomes extremely important when designing such infrastructures, especially for tier -1 cities such as Delhi, Mumbai, Chennai, Bangalore, etc. where most of the population resides in Multi-Unit Residential Blocks or high rises. Incidentally, these cities also represent the region’s highest growth potential for E-Cars. Existing buildings in these cities however lack space even for parking facilities. Arranging for charging stations or simply charge points in such complexes is, therefore, a huge challenge. New complexes can be designed favourably but altering the existing ones would require a lot of investment and building plan alteration.
A mitigation technique can be integrating petrol pumps with charging infrastructure. As of August 2020, there are 69,9244 petrol pumps spread across the country. Having charge points integrated with these petrol pumps can be an excellent way to increase the reach and penetration of EVs in the country. An example of this is HPLC (Hindustan Petroleum Corporation Ltd.), which has entered into partnerships with Tata Power and CESL to install over 5,000 charge points in petrol pumps over the next three years.
BPCL too has laid out similar plans, having committed to set up 1000 EV Charging stations in the ‘short-term’. However, this needs to be planned and designed in such a way that it does not create a bottleneck.
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Exide Share Price Target 2023
Exide invested in the Lithium-ion space in 2018 to fast-track the world’s transformation towards sustainable energy solutions through its subsidiary Exide Leclanche Energy Private Limited (known as Nexcharge brand), together with its Joint Venture partner, Leclanche, Europe’s leading energy storage solutions provider, to build lithium-ion batteries and provide energy storage systems for India’s electric vehicle market and grid-based applications.
As more reforms and regulations shape the future of energy transition with the use of Lithium-ion batteries, Exide’s production capacity, as well as the quality of its solutions, will position Exide as a leading player in this space. Due to electric vehicles, Lithium-ion batteries will have a good demand in the coming years and Exide is the major player in this segment, so Exide will benefit a lot from the Lithium-ion battery manufacturing segment. By considering these factors, Exide share price target for 2023 is Rs 220.
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Exide Share Price Target 2024
The Punch-Grid Technology, developed with its partners East Penn, USA is an automated, high speed, plate manufacturing system for lead-acid batteries. In another initiative, the R&D engineers have seized an opportunity in overseas markets to introduce a large number of SKUs with Exide’s ‘punched grid’ technology, which is gaining acceptance in the ever-evolving North American markets.
Micro-Hybrid cars, also known as Idle Start-Stop cars, are increasingly gaining acceptance in the Indian markets. It is not only beneficial for the environment but has also emerged as a fuel-efficient and economic alternative to traditional cars. Along with its Brazilian partner Moura, Exide Industries are developing a robust battery to meet the requirement of new-age cars. The battery is being currently evaluated by a major European car manufacturer.
Partnering with its collaborators Advanced Battery Concepts (ABC), USA, Exide Industries is in the advanced stages of building a product that can be used as an alternative for Lithium batteries, for low power requirements, namely low-speed electric two wheelers. Bench studies have offered promising results and we plan to test them in the Indian markets in the coming financial year. Along with Lithium-ion battery technology, Exide is also working on a lot of other future-proof technologies which will have huge demand in the coming years, Exide share price target for 2024 is Rs 280.
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Exide Share Price Target 2025
The improvement in automobile sales in the last few months of the year under review augurs well for the industry. As many people opt out of public transport for personal vehicles, OE demand will get a boost, and there should be a rise in demand for replacement batteries.
The strategic positioning of the Company’s three brands, Exide, SF, and Dynex, with their unique price-value propositions, will help Exide to seize the market opportunities. The Company’s simultaneous focus on the electric mobility demands of the future carried out through its subsidiary Exide Leclanche Energy Private Limited, coupled with the upgrading of lead-acid technology, will ensure medium- to long-term advantage. Digital transformation of the entire Sales and Service network coupled with a data and analytics-based approach to leveraging market opportunities has started paying immediate dividends in terms of response to consumer needs.
With many players fighting for market share in the lead-acid battery space, Exide’s dominance will face some pressure. But, with its multi-brand strategy straddling different price-value segments and a digitally enabled sales and service ecosystem, Exide is fully prepared not just to tackle these threats but to grow at a pace that will leave the competition further behind. By considering the strong presence and brand values of Exide in the battery segment, Exide share price target for 2025 is Rs 350.
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Exide Share Price Target 2030
With the gradual increase in commercial activity and government initiative to increase infrastructure spending, the outlook of the UPS business, which is the largest vertical of the Industrial division of the Exide, is promising and Exide can expect decent growth in the Industrial UPS business in the coming fiscal year.
The Solar division also shows a lot of promise in the current year, with a decent order book in place. The new government policy in the power segment to buy only Indian products made with more than 95 percent Indian raw materials is likely to eliminate some competition and so benefit Exide. By considering the future growth opportunities, Exide share price target for 2030 is Rs 980.
Exide share price target 2023, 2024, 2025, and 2030 Table
|Year||Exide Share Price Target|
|Exide share price target 2023||Rs 220|
|Exide share price target 2024||Rs 280|
|Exide share price target 2025||Rs 350|
|Exide share price target 2030||Rs 980|
Frequently Asked Questions
Is Exide good stock for long term?
Yes, Exide is a good stock for the long term. As there will be a huge demand for batteries in the future due to electric vehicles, Exide Industries is the one that benefits a lot from the EV push. Exide Industries is one of the major players in the battery manufacturing segment with good brand value.
Is Exide a good stock to buy?
Yes, Exide is a good stock to buy. With the gradual increase in commercial activity and government initiative to increase infrastructure spending, the outlook of the UPS business, which is the largest vertical of the Industrial division of the Exide, is promising and Exide can expect decent growth in the Industrial UPS business in the coming fiscal year.
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