2021: A Year to Invest in Exide Industries Stock and Key Investment Ratios

Is 2021 a good year to invest in Exide Industries stock?

The answer to this question depends on several factors, including the current market price of the stock, the overall economic environment, and your individual investment strategy. Given that the current market price is 144 and the stock has been trading lower than its yearly high of 200, it can still be seen as a potentially good investment.

Current Market Price and Potential Investments

If you are looking for a solid investment, you might consider investing in Exide Industries through a Systematic Investment Plan (SIP) mode. This strategy involves investing a fixed amount regularly, providing a chance to buy more shares when prices are lower and fewer shares when prices are higher.

It's important to note that while the current market price is 144, there is a maximum downside risk of 10–15%. Therefore, you should only consider this stock if you are comfortable with this level of risk.

Current Market Trends and Investment Considerations

The Indian equity markets and world markets are currently witnessing a sell-off due to high inflation and fears of a potential US recession. This situation is expected to impact the returns for the year, making it a cautious time for investors.

For Exide Industries, the past one year has seen its stock performance decline, with a low point of 140 earlier in the month and now trading around 150. This suggests that the stock is currently in a downward trend and not showing strong signs of bullishness.

Key Investment Ratios for Stock Analysis

To make a well-informed decision, investors should consider key financial ratios. Here are five essential ratios that can be used to evaluate stocks:

Price-Earnings Ratio (P/E) Earnings Per Share (EPS) Debt to Equity Ratio Return on Equity (ROE) Book Value

For Exide Industries, the stock has made a yearly high of 200, but it is currently quoting at around 153 – 25% below its yearly high. This indicates a potentially bounce in technical terms, but it's not a strong sign of bullishness yet. Additionally, medium-term charts for Exide Industries appear weak, and the stock should be considered only if it manages to scale back up to 200 again. Until then, it might be advisable to avoid buying.

Peer Comparison and Product Analysis

When evaluating Exide Industries, it's also important to compare it with its peers. Exide Amararaja is expected to play a key role in the Electric Vehicle (EV) theme, but it requires a long-term perspective. To make a more informed decision, you should consider the following criteria:

Products made by Exide Market Cap vs. Current Trading Price Book Value and Profit and Loss Analysis Peer Comparison with Amararaja

For Exide Industries, the market cap is large, but the current trading price is relatively low. The book value of 83 per share looks attractive, but it's crucial to wait and see how other criteria align before making a final decision. Year-over-year (Y-O-Y) profit and loss analysis will help you understand the financial health of the company. Moreover, comparing Exide with its peer, Amararaja, can provide valuable insights into which company is a better investment.

Remember, successful investing is not just about buying at the right time; it's also about holding onto the right stocks for the appropriate duration. Happy investing—and stay invested!