Higher lead prices to weigh on Amara Raja, Exide

Analysts have cut their earnings estimates for both firms

After gaining 20 per cent after its September quarter results, the Amara Raja stock corrected by three per cent in trade on Thursday. The gain had followed the results last week, which saw a strong 380 basis point (bps) improvement in the operating profit margin to 16.7 per cent, compared to the June quarter's five-year low of 12.9 per cent.

The change was on account of price hikes across segments, an improved product mix, with high share of replacement market sales, and increase in margins for the home UPS battery business. However, this is where good news ends. Analysts expect