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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


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


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first published: Nov 30, 2021 04:52 pm
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