Amara Raja Batteries hits record high on strong Q3 numbers

Amara Raja Batteries rallied as much as 6 percent intraday to touch a record high of Rs 319.75 on Tuesday after reporting strong numbers in the third quarter of financial year 2012-13.

January 29, 2013 / 17:57 IST

Amara Raja Batteries rallied as much as 6 percent intraday to touch a record high of Rs 319.75 on Tuesday after reporting strong numbers in the third quarter of financial year 2012-13.

The company that offers a wide range of products from batteries, power solutions to electronics and fruit juices reported a net profit growth of 23 percent year-on-year - higher than expected - to Rs 81 crore in December quarter.

Total income grew by 23.8 percent YoY to Rs 759 crore in the third quarter, which too was above forecast. Analysts on an average were expecting profit after tax of Rs 69.4 crore on total income of Rs 754.6 crore for the quarter.

The research firm Nomura has recommended a buy rating on the stock with a target price of Rs 299. "Profits were 16 percent ahead of estimates on the back of better than expected operating margins. Increase in capex plans also highlight strong conviction in volume growth,' the firm reasoned.

At 15:04 hours IST, shares rose 5.06 percent to Rs 316.75 amid hefty volumes on Bombay Stock Exchange.