See 14-15% upside in Amara Raja, says Ajay Bodke

See 14-15% upside in Amara Raja Batteries, says Ajay Bodke of Prabhudas Lilladher.

Bodke told CNBC-TV18, "We have consistently recommended Amara Raja Batteries over Exide Industries since the beginning of the calendar year and the stock has done exceedingly well but we still feel there is some more upside left in the stock. We are looking at an upside of around 14-15 percent from the current levels in the medium-term."
He further added, "Fundamentally analysts are expecting revenue growth of around 21 percent in the current financial year followed by around 15 percent in FY13-14 and on the bottomline front as against 38 percent growth in FY13 we are expecting around 21 percent growth continuing in FY13-14. So with an extremely high RoE of around 31 percent, in the current year around 30 percent next year even at the current valuations of around 12 times one year forward, we still feel that the gap between Exide and Amara Raja – there is a scope for a bridging of that gap and hence an upside of around 15 percent from the current levels is what we are looking at."