Exide Industries Downgraded to 'Sell' by MarketsMOJO, Poor Growth and Expensive Valuation Cited

Exide Industries, a largecap company in the battery industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 21, 2024. This decision was based on several factors, including poor long-term growth and flat results in September 2024. The company's operating profit has only grown by an annual rate of -0.07% over the last 5 years, and its ROCE (HY) and operating profit to net sales (Q) are at their lowest levels.
Additionally, Exide Industries has a very expensive valuation with a price to book value of 2.6 and a ROE of 6. This indicates that the stock is trading at a premium compared to its historical valuations. While the stock has generated a return of 45.54% in the past year, its profits have actually fallen by -3.9%.

Other factors that contribute to the 'Sell' rating include a low debt to equity ratio and a sideways technical trend, which signifies no clear price momentum. The technical trend has also deteriorated since November 21, 2024, and has generated a -1.28% return since then.

However, Exide Industries does have some positive aspects, such as high institutional holdings at 30.28%. These investors have better capabilities and resources to analyze the fundamentals of companies, making their holdings a good indicator of the company's potential.

Moreover, the company has consistently outperformed the BSE 500 index in the last 3 years, generating a return of 45.54%. Despite this, the recent downgrade by MarketsMOJO suggests that investors should approach Exide Industries with caution and carefully consider all factors before making any investment decisions.