Sharekhan has given Buy recommendation for Amara Raja Batteries with a target price of Rs. 784 in its research report issued on Feb 10, 2022

Sharekhan’s research report on Amara Raja Batteries

Q3FY2022 results were below expectations due to sharper contraction in EBITDA margin than expectations. We expect Amara’s revenue and earnings to report CAGR of 18.9% and 10.4%, respectively, during FY2021-FY2023E. The stock trades below its historical average P/E multiple of 13.5x and EV/EBITDA multiple of 6.8x its FY2023 estimates.

Outlook

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

More Info on Amara Raja Batteries

At 17:30 Amara Raja Batteries was quoting at Rs 596.85, down Rs 3.20, or 0.53 percent.

It has touched an intraday high of Rs 608.95 and an intraday low of Rs 595.10.

It was trading with volumes of 42,333 shares, compared to its thirty day average of 81,213 shares, a decrease of -47.87 percent.

In the previous trading session, the share closed up 1.39 percent or Rs 8.25 at Rs 600.05.

The share touched its 52-week high Rs 929.00 and 52-week low Rs 568.75 on 04 March, 2021 and 15 February, 2022, respectively.

Currently, it is trading 35.79 percent below its 52-week high and 4.88 percent above its 52-week low.

Market capitalisation stands at Rs 10,194.94 crore.

 

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