Rajen Shah, CIO of Angel Broking told CNBC-TV18, "Amara Raja Batteries reported about Rs 16.5 kind of earnings, so it is trading at about 15-16 times the earnings. Whereas, if you see Exide reported about Rs 6.5 almost, so it is trading at 20 times.”
He further added, “I would go with Exide, the reason being that I am hopeful that in the coming 12-24 months probably they could – first of all it is a debt free company. Secondly, they could exit the insurance business which they bought for about Rs 550-600 crore from ING Vysya Life Insurance Co. So probably that could be one of the triggers in Exide. Plus the management has expressed optimism for the current year. So though Amara Raja at 15 times looks better on a valuation basis, I would bet with Exide which is at 20 times."
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