Moneycontrol PRO

ARBL and Exide: Margins under pressure; soft patch offers good risk-reward

We believe the current stock prices offer favourable risk-to-reward to investors, given the strong standing of these companies, and rising demand both from the automotive and the industrial segments. Moreover, the chip shortage issue is expected to normalise in the months to come

May 24, 2022 / 09:32 AM IST
ARBL and Exide: Margins under pressure; soft patch offers good risk-reward

Representative image (Source: Reuters)

PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Amara Raja Batteries Ltd (CMP: Rs 498.95, MCap: Rs 8,510 crore) and Exide Industries (CMP: Rs 143.2, MCap: Rs 12,180 crore) —  the two big listed battery manufacturers —  have corrected 38 percent and 30 percent respectively from their 52-week highs on May 21 and September 21. The steep correction was triggered by the concern over stunted demand from original equipment manufacturers (OEM) because of semiconductor shortage and commodity-linked cost pressure impacting their profitability. The fall in the stock...

  • PRO Panorama

    Moneycontrol Pro Panorama | Financial innovation: RBI walks a tight rope

    Jun 23, 2022 / 07:13 PM IST

    In today’s edition of Moneycontrol Pro Panorama: Red Queen in MPC minutes, a turnaround IT story, macro clouds gather, Start-up Street and more

    Read Now
  • PRO Weekender

    Moneycontrol Pro Weekender | When Jerome Powell sneezes…

    Jun 18, 2022 / 10:01 AM IST

    The prime concern of the Street is whether the Fed will go too far to keep inflation on a tight leash, potentially setting the stage for recession

    Read Now

To read the full story, Subscribe to Moneycontrol PRO

Access the exclusive stories, weekly investment ideas and daily technical calls in an Ad free experience

Already a member? Sign in

Limited Period offer on Moneycontrol PRO. Subscribe to PRO and get up to

50% OFF

What Do You Get

  • Ad free experience

    Experience a non-intrusive navigation and faster response in the ad free mode

  • Sharpest Opinions

    Access to 230+ exclusive stories per month from our editorial and Experts

  • +

    Have a Global edge with access to content from world renowned experts and journalist

  • Actionable Insights

    Access to 40+ weekly investment ideas including 4 daily technical calls

  • Virtual Events

    Exclusive access to live webinars from market experts on trading and investment strategies

  • Newsletters

    Daily and weekly insights bundled and sent to your inbox to keep you ahead in the race.

Get upto 50% discount on limited period offers