Amara Raja Batteries can touch Rs 315-318: Prakash Diwan

Prakash Diwan, Chief Portfolio Strategist, Prakash Diwan's Wealth Circle, ECR told CNBC-TV18, "Amara Raja Batteries has had this whole retracement of shorts from Rs 320 levels when midcaps took a beating a few months back. If one sees the numbers today, there had been a huge expectation before the numbers. The stock had run up quite well. The numbers have shown a little bit of shrinkage in margins particularly, which has caused some worry in the street."

He further added, "If one looks at going forward the way the topline growth might still be muted for the battery companies both Exide and Amara Raja Batteries could benefit with lower input cost and that means it could probably restore the margins back to some normal level, about 16-16.5 percent EBITDA. I expect the stock to see about Rs 315-318 kind of levels which would be a good target to start exiting."