Excellent inputs. Kudos to you. I bought this around 140 levels and sold at 356.00. Again bought at 456 levels. Under priced share & silent performer. Not much liquid. I should once again appreciate your efforts for collecting the data. Similarly, another stock is TTK Prestige, which is undervalued. Regards ushaniru ...

Be prepared for upper circuit tommorow...

If you compare Amara Raja results with Exide, you will find Revenue Growth for the qtr for both companies is almost nil but in case of Exide, decrease in RM cost is 40% whereas in case of Amara Raja RM cost is same as per last qtr. Means Exide has procured its RM more efficiently. Amaron has been able to show bottomline because of exceptional item effect of 15Cr for the qtr that is because last year it has charged off currency exchange gain/loss in P&L. At operational level, Exide has performed much better for the qtr. Exide has given more than 90% growth in net profit whereas Amaron has given less than 50% excl exceptional items....

EPS should be more like 21-22. But yes, stock should be re rated. Being a small cap, it is getting missed. Exide does less than 3 times its turnover (with similar margins) but trades at 6 times its market cap. Even if one excludes the valuation of ING vyasya Life stake, the gap is huge. I believe Amara has more headroom to grow and that too in a growing industry. The pie is getting bigger and Amara will definitely get a better share of the pie. In march 08, it was trading 13x FY08 earnings. price has gone down and come back to same level. Earnings have doubled. At 7x FY10 earnings, it is a no brainer. ...

it appears that this will cross 150... soon.....

Nothing to worry. Price is in a consolidation phase after a big rise. This scrip will do great in the medium to long term. ...

Inspite of so many positive news like 20% increase in Ad rates across the board and Deccan charger IPO in near future and fall in paper costs which is main raw material for any news paper , any idea why this stock is falling ???...

Amara Raja has 26% share of auto battery business and 60% share of telecom and industrial battery business. Since batteries are replaced every 3 years to 5 years.and base of autos is growing at 30% pa ..replacement demand is huge.

Stock now trades at 7.5X FY 2011 earnings..and can double in 6 months.

Company expanding capacity by nearly 3 times using internal accruals. So the stock can give 4 to 5 times return over 3 years. ...

As we all know, after a terrible 18 months, real estate and retail are slowly beginning to come back, though there are still pockets of pain. The activity (not prices) come back will be stronger over the next 1 to 2 quarters: though prices will be highly subdued.

Greenply did reasonably well even in the tough times. It has continually expanded capacity and its results will dramatically improve when demand hardens. It is available dirt cheap. ...

Investments: As others here have pointed out..its investment portfolio is very interesting and provides a base/bottom support to the valuation.

Core business: in H2 CY 2008 and CY 2009 was badly hit on the soda ash side in terms of margins. This business is coming back: it was surprising to hear about the soda ash production for CY 2010 being sold out.

Fertiliser capacity being added...change over to gas will enhance profitability.

Bottomline: they have come through a very tough time globally and now in FY 10-11 (ie March FY 2011 which is next year) things will go flying for them.

Buy or if you have it keep it and enjoy...

Podaraditya:

Good analysis. Keep up the good work.

VS...

Rapidly growing vehicle and industrial battery market: huge replacement demand, all growth being funded by internal accruals, leader in several battery segments, no 2 in OE: EPS of ~25 in FY 2010.

Both Exide and Amara Raja are like Asian Paints: replacement demand will continue to drive business: paints: home repainting every 5 to 7 years with house base increasingly every year. Likewise battery need to be replaced and the base population of batteries keeps growing every year.

Significant re-rating possibility for Amara: should quote at 12 to 13 times FY 10 earnings ie Rs. 300.
...

vkk43ji:

Your feedback and analysis has been consistently amazing. How can you follow so many companies.

What do you think of Supreme Industries?

valueseek...

Satinder:

We will wait for September results: because of reasons in previous mail..they are likely to be good. So stock will get re-rated based on September and December results. ...