amara raja batteries ltd.

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by ashu.bhattacharjee, Mar 30, 2015.

  1. ashu.bhattacharjee

    ashu.bhattacharjee New Member

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    I want to invest in Amara Raja stock on a monthly SIP basis for a period of 8-10years. I would like to know if it is a good investment and also the average CAGR which the stock may give for the said period of 10 years???
     
  2. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    well, Amara Raja has been a stellar performer over the past several years. Even if Exide manages to take back the leadership position from Amara, Amara will do well given the growing size of the market in the OEM and the replacement segment.

    The only two issues of concern are that the promoter, Jaydev Gala, has become a politician. This may adversely impact his involvement with the company. the other issue is that the company has a transaction to pay promoter entity Rs. 40 crore upfront for 99-yr lease.
     
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