Profit traction of Amara Raja better than Exide: Avinnash Gorakssakar

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Miintdirect.com shares his view on Amara Raja and Exide

ET Now: What is the call here between Amara Raja and Exide?

Avinnash Gorakssakar: For the next couple of quarters we could see profit traction and top line traction for Amara Raja better than Exide. On the profitability side the reason why they have managed to do better is largely because they are more prevalent on the replacement market side.

Exide has a very large stickiness with most of the OEM players. More importantly, over the years we have seen that Amara Raja from being a smaller player have diversified in the auto basket to include tractors, commercial vehicles, two wheelers, passenger cars so slowly the base and the basket for Amara has become quite diversified.