Neutral Amara Raja; target of Rs 590: Motilal Oswal

Motilal Oswal's research report on Amara Raja

AMRJ’s 2QFY23 earnings were led by softening of RM costs coupled with volume growth across segments. The recent moderation in lead prices will aid margin recovery. Volumes should see an upward trajectory in both automotive and industrial segments. We raise FY23E/FY24E EPS by 28%/14% to factor in the recovery in the automobile segment and exports coupled with the benefit from softening RM costs.

Outlook

We reiterate our Neutral rating with a TP of INR590 (12x Sep’24E EPS).

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Amara Raja - 04-11-2022 - moti