is the Exide Industries Limited share a good buy for 10 years

Read Time:3 Minute, 30 Second

Exide Industries Limited, a major player in the Indian automotive and industrial battery manufacturing sector, has garnered attention from market analysts projecting a bullish outlook on its share price. These experts foresee the potential for Exide’s stock to reach INR 350 in the medium to long term, citing several favorable factors contributing to its growth trajectory.

One key factor supporting the positive outlook is Exide’s consistent financial performance, marked by robust revenue and profit figures over the years. This track record of stability and growth has bolstered investor confidence, fueling increased demand for Exide’s shares.

Furthermore, the rapid expansion of the Indian automotive industry and the rising demand for batteries across various sectors, including automobiles, inverters, and renewable energy, have created a conducive market environment for Exide Industries. The company’s strategic emphasis on research and development, coupled with a focus on product innovation and technological advancements, has further buoyed investor sentiment.

The prudent financial decisions and cost control measures implemented by Exide’s management, along with efforts to enhance operational efficiency, have contributed to the company’s financial strength, attracting more investors to its fold.

While acknowledging the inevitability of short-term fluctuations in the stock price due to market dynamics, experts maintain a positive long-term outlook for exide share price target. They anticipate that the company’s commitment to sustainability and eco-friendly initiatives will enhance its reputation and market standing over time.

However, the article also underscores the importance of investors remaining vigilant about potential risks and challenges that could affect exide share stock performance. These include stiff competition in the battery industry, volatility in raw material prices, and changes in government policies and regulations.

In summary, the article paints a promising picture for Exide Industries Limited, with a projected share price target of INR 350 in the medium to long term. Investors are advised to conduct thorough due diligence and risk assessment before making investment decisions, taking into account both the positive factors driving Exide’s growth and the potential challenges it may face in the future.

Determining the amount required for investing in Exide Industries Limited with a target horizon of 10 years involves several considerations, including the current share price, the projected share price target, the desired rate of return, and the investment strategy.

Here’s a simplified approach to estimate the amount required:

Share Price Target: Let’s assume the projected share price target for Exide Industries Limited in 10 years is INR 500 per share, based on market analysis and expert forecasts.
Current Share Price: As of now, let’s assume the current share price of Exide Industries Limited is INR 200 per share.
Desired Rate of Return: Determine the desired rate of return on investment. For example, if you aim for an annualized return of 10% over the 10-year period, it would represent a compounded annual growth rate (CAGR) of 10%.
Investment Period: Determine the investment period, which in this case is 10 years.
Calculation: a. Calculate the expected return per year using the desired rate of return. For example, with a 10% annualized return, the expected return per year would be 10% of the initial investment. b. Calculate the compounded growth factor using the desired rate of return. For example, with a 10% annualized return, the compounded growth factor would be (1 + 0.10)^10. c. Calculate the future value (target price) of the investment after 10 years using the compounded growth factor. For example, Future Value = Initial Investment * Compounded Growth Factor. d. Determine the amount required for investment by dividing the future value by the current share price. For example, Amount Required = Future Value / Current Share Price.

Let’s illustrate with an example:

Current Share Price: INR 200 per share
Share Price Target (in 10 years): INR 500 per share
Desired Rate of Return: 10% annually

Calculation: a. Expected Return per Year: 10% of Initial Investment b. Compounded Growth Factor: (1 + 0.10)^10 c. Future Value = Initial Investment * Compounded Growth Factor d. Amount Required = Future Value / Current Share Price

Using these inputs and calculations, you can determine the amount required to achieve the target investment in Exide Industries Limited over the 10-year period.

Must Read : Is Exide Industries Limited (EIL) a good share to buy?