Moneycontrol PRO
Open App

Buy Amara Raja Batteries: target of Rs 784: Sharekhan

Sharekhan is bullish on Amara Raja Batteries has recommended buy rating on the stock with a target price of Rs 784 in its research report dated November 29, 2021.

November 30, 2021 / 04:52 PM IST

Sharekhan's research report on Amara Raja Batteries


Q2FY2022 results were below expectations due to sharper contraction in EBITDA margin than expectations. We have reduced our earnings estimates by 15.7%/8.6% for FY2022E and FY2023E to build in drop in EBITDA margin. Further, we expect Amara’s revenue and earnings to report a CAGR of 18.9% and 10.4%, respectively, during FY2021-FY2023E. The stock trades below its historical average P/E multiple of 13.2x and EV/EBITDA multiple of 6.7x its FY2023 estimate



Outlook


We maintain our Buy rating on Amara Raja Batteries Limited (Amara) with a revised PT of Rs. 784, owing to price correction, a brighter demand outlook for batteries, and comfortable valuations.


For all recommendations report, click here

Close

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Nov 30, 2021 04:52 pm
Sections
ISO 27001 - BSI Assurance Mark