Buy Amara Raja Batteries; target of Rs 200: Sunidhi Sec

ALSO READ See previous views by Sunidhi Securities & Finance See what other Experts & Brokerages are saying about Amara Raja Batt See messages about Amara Raja Batt Amara Raja Batt BSE | NSE 10/02/12 Are Mutual Funds betting on Amara Raja Batt?

Sunidhi Securities & Finance is bullish on Amara Raja Batteries and has recommended buy rating on the stock with a target of Rs 200, in its March 10, 2010.

"Amara Raja Batteries is likely to post an EPS of Rs 20.3 in FY10 and Rs 22.0 in FY11. At the CMP of Rs 156, the share is trading at a P/E of 7.7x on FY10E and 7.1x on FY11E. We recommend BUY with a target of Rs 200 in the medium term. As seen in its weekly chart, the stock had hit its previous bull run high of Rs 184 in Nov' 09. Thereafter, the stock entered into a consolidation phase. Going ahead, the stock needs to break the resistance at Rs 184 so as to attract the attention of long-term investors," says Sunidhi Securities & Finance research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment