Neutral Amara Raja; target of Rs 590: Motilal Oswal

Motilal Oswal's research report on Amara Raja

AMRJ's 4QFY22 earnings were impacted by RM cost inflation, logistical bottleneck in exports, higher competitive intensity, and migration to a stamp grid tech platform in 2W production. The recent moderation in lead prices will aid a margin recovery. Volumes should see good growth across segments in FY23. We largely maintain our FY23/FY24 EPS estimate.

Outlook

However, we cut our P/E multiple to 12x from 14x to account for the recent increase in the risk-free rate and risk due to shift towards EV. We maintain our Neutral rating with a TP of INR590/share (12x Mar'24E EPS).

For all recommendations report, click here

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.

Read More