 "Amara Raja Batteries hits record high")
Amara Raja Batteries has surged over 8% to Rs 680, also its record high, in otherwise subdued market in noon deal trade on National Stock Exchange (NSE).
The stock opened at Rs 622 and has seen huge trading volumes with a combined 442,854 shares changed hands on the counter on NSE and BSE till 1145 hours.
A strong operational performance and overseas investor’s interest in the company have seen rally in the stock.
Shares of auto parts and equipment maker, is among the major outperformer, zoomed 102% from Rs 336, so far in the current calendar year 2014, compared to 26% rise in the benchmark CNX Nifty.
Foreign institutional investors (FIIs) have raised their holdings in the company by nearly 5 percentage points so far in 2014. FIIs held 18.07% stake in September quarter against 13.35% at the end of December 2013 quarter, the shareholding pattern data shows.
According to analyst at Prabhudas Lilladher, Amara Raja Batteries is likely to post around 29.4% year-on-year (YoY) growth in top?line, mainly on account of a strong traction from the automotive replacement segment.
EBITDA or operating profit margin is likely to decline by 86bps YoY on account of higher lead and power costs. Strong traction in the telecom segment is likely to surprise on the revenue front, said analyst.
“Amara Raja Batteries performance has continued to be impressive even as industry leader struggles with consistency of profitability. The company’s consistent performance, strong return rations, good visibility of earnings and a strong balance sheet make a strong case for valuation premium of around 20-25% vis-à-vis Exide Industries,” says analyst at ICICI Securities.
Analyst maintains ‘buy’ rating on the stock with a target price of Rs 700.
The stock opened at Rs 622 and has seen huge trading volumes with a combined 442,854 shares changed hands on the counter on NSE and BSE till 1145 hours.
A strong operational performance and overseas investor’s interest in the company have seen rally in the stock.
Shares of auto parts and equipment maker, is among the major outperformer, zoomed 102% from Rs 336, so far in the current calendar year 2014, compared to 26% rise in the benchmark CNX Nifty.
Foreign institutional investors (FIIs) have raised their holdings in the company by nearly 5 percentage points so far in 2014. FIIs held 18.07% stake in September quarter against 13.35% at the end of December 2013 quarter, the shareholding pattern data shows.
According to analyst at Prabhudas Lilladher, Amara Raja Batteries is likely to post around 29.4% year-on-year (YoY) growth in top?line, mainly on account of a strong traction from the automotive replacement segment.
EBITDA or operating profit margin is likely to decline by 86bps YoY on account of higher lead and power costs. Strong traction in the telecom segment is likely to surprise on the revenue front, said analyst.
“Amara Raja Batteries performance has continued to be impressive even as industry leader struggles with consistency of profitability. The company’s consistent performance, strong return rations, good visibility of earnings and a strong balance sheet make a strong case for valuation premium of around 20-25% vis-à-vis Exide Industries,” says analyst at ICICI Securities.
Analyst maintains ‘buy’ rating on the stock with a target price of Rs 700.