Amara Raja Batteries has good potential: Rajesh Jain

In a chat with ET Now, Rajesh Jain, market strategist, talks about the outlook of Amara Raja Batteries.

What would be the key factor for Amara Raja Batteries?

The most exciting development the stock has had recently has been the indication of two-wheeler battery orders from Hero Honda and we all know that Hero Honda is a huge volume player in the automobile space. That has been the latest icing on the Amara Raja cake. Otherwise, it has always been a leading industrial batteries player particularly the VRLA segment and is a big supplier to the institutional government and the private sector.

With industrial investment cycle reviving, we see a lot of business uptick for the company. It has a very strong product in the automobile space for four-wheelers and should continue to benefit from the huge volume growth that the sector is witnessing.

The stock has not kept pace with the industry peer Exide and has tremendous potential going forward. I think both as a play on growth and as well as play on valuation Amara Raja stands the potential to give good returns to shareholders.