Strong automotive battery sales offset slow UPS battery sales, and boosted the fortunes of Exide Industries for the June quarter. YoY revenue grew 5%, although net profits saw a slight dip due to fall in other income. Exide has also been able to maintain its margins at 15.4% this quarter vs 15.6% the same period last year.

The company is expected to benefit from various trends happening through FY18 and FY19, with demand from auto OEMs and for replacement batteries expected to rise.The GST regime is a boost to Exide, as it reduces the price differential with the unorganized sector. In addition, the shift towards solar and electric across industries is a natural market for the company. The company is also improving its distribution network, according to analysts, incentivising independent garages to use Exide batteries for replacements.

The company has won market share from Amara Raja and reduced the price gap with its competitor via these efforts. Higher lead prices are expected to be one stress factor in coming quarters however, and expected to impact margins downward. Overall, analysts from HDFC Securities, BP Equities and Motilal Oswal have issued BUY calls on the stock. The company's share price is currently trending below the averaged out target price.