Sharekhan's research report on Amara Raja Batteries
The company reported weak performance in Q4FY2023 but guided for an EBITDA margin range of 14-16% in the coming years. ARBL is securing the future via investing in Li-ion project, the first phase of project is likely to be completed in the next 2.0-2.5 years. The stock trades at P/E multiple of 10.9x and EV/EBITDA multiple of 5.3x its FY2025E.
Outlook
We reiterate our Buy rating on Amara Raja Batteries Limited (ARBL), with an unchanged PT of Rs. 696, in expectation of revival in replacement demand, improvement in profitability, and comfortable valuation.
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