Edelweiss maintains buy on Amara Raja Batteries, target price Rs 801

Edelweiss has maintained buy rating on Amara Raja Batteries in the long term with a target price of Rs 801. Shares of Amara Raja Batteries ended down 0.6% at Rs 720 on Wednesday while the BSE Sensex closed 52.28 points up at 41,306.02.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 1695.31 crore, down -6.59% from last quarter sales of Rs 1814.95 crore and down -3.29% from last year same quarter sales of Rs 1753.05 crore. The company has reported net profit after tax of Rs 218.61 crore in the latest quarter.


The company’s top management includes Dr.Ramachandra N Galla, Mr.Jayadev Galla, Mr.Marc D Andraca, Mr.N Sri Vishnu Raju, Mr.Nagarjun Valluripalli, Mr.T R Narayanaswamy, Ms.Bhairavi Tushar Jani. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2019, the company has a total of 170,812,500 shares outstanding.

Investment Rationale

The tax cut gives battery players power to enhance investments and R&D for technology upgradation, it said. The brokerage estimates 7% sales CAGR and 15% Ebitda CAGR over FY19-21.