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Last Updated : Jan 14, 2019 11:46 AM IST | Source: Moneycontrol.com

Buy Amara Raja Batteries, says Sumit Bilgaiyan

At the CMP, the stock trades at a P/E of 27x on TTM EPS. Stock has given strong break out on weekly chart.

Moneycontrol Contributor @moneycontrolcom
 
 
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Sumit Bilgaiyan

With 26 percent equity each from the Galla Family and Johnson Controls (USA), Amara Raja Batteries (ARBL) is the technology leader and one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.

ARBL supplies automotive batteries under OE relationships to Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, Ashok

Leyland, and Tata Motors, Honda Motorcycles & Scooters India Private Ltd, Royal Enfield, Bajaj Auto Ltd among others. Due to higher  raw material prices, company had posted muted numbers for FY18 & H1FY19 but we are expecting better numbers in H2FY19.

During H1FY19, Its sales and EBITDA grew by 13.97 percent and 6.02 percent YoY, respectively, while PAT increased by 2.73 percent to Rs 233.26 crore. At the CMP, the stock trades at a P/E of 27x on TTM EPS. Stock has given strong break out on weekly chart. We are recommending a buy in staggered manner for medium to long term.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Jan 14, 2019 11:46 am
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