The concluding words in my message of the 6th Sep. 08, speak for themselves. I reproduce the same again for your benefit.

"I must sound a strong word of optimism, however. Its trump cards have been

(a) continuous and right kind of investment in capacity expansion and upgradation of facilities. As the new investments begin to bear fruit, they could themselves have a dampening effect, both on the input costs and also on the interests costs;

(b) (b) a pro active management that is intensely focused on the future. These are what have made this company a front runner in the severely competitive battery industry.

Reasons why, I endorse the view that this company’s shares represent and will continue to represent a good investment opportunity."

Amara Raja to the present low prices, is very much worth buying.
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I refer to my query re low Q1 profits. Please look up under company announcements in bseindia. During Q1 the company has provided for notional forex losses of Rs. 9.1cr...these are notional MTM losses and not actual losses. The PBT before this notional loss is Rs. 32cr for Q1 which is up 20% yoy. The revenues are up 49% yoy..which means market share is not falling which is crucial in the space. With this I am relieved and a buyer. This and Exide are like Asian Paints..because of repeat demand (from auto, industrial batteries) the companies will keep on posting top line growth irrespective of new auto sales growth. More than 55% of revenues come from nonauto businesses. The icing on the cake will be in late 2009 when lead prices are expected to fall by nearly 40% from current levels...nearly 40% of the price of a lead battery is the lead cost and with a 40% drop..we are talking of 16% savings in materials.... Even if half that is retained by the company...profits will zoom in mid to late 2009. BUY AGGRESSIVely....

i think high debt and interest outflow is keeping the investors away. The record date of the bonus is also a month away. i had purchased a small quantity today at 130. looking to add more. Please comment whether its worth buying and addding more at current levels. Commodity prices are seeing some cooling which will be beneficail for the company....