Buy Amara Raja Energy and Mobility; target of Rs 1638: Sharekhan

Sharekhan's research report on Amara Raja Energy and Mobility

Amara Raja missed bottom-line estimates on weak performance in the telecom and 4W OEM fronts, though EBITDA margin matched estimates. Amara Raja targets a 15% volume CAGR in export markets in the next three years.

Outlook

We maintain BUY on the stock with a revised PT of Rs.1,638 on account of expectation of healthy traction in the replacement segment and an opportunity to play in the Li-ion cell business. The stock trades at a P/E multiple of 19.5x and EV/EBITDA multiple of 8.9x its FY2027 estimates.

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