New expansion announced: The board has approved setting up a greenfield automotive battery plant with a capacity of 6.5 mn units (capex Rs7 bn). Outlook and valuation: We believe Amara Raja holds durable competitive advantages over peers, with strong brand, technical expertise (via parent JCI global brand) and its lower cost structure (compared to its peers). We expect margins to improve in H2FY19 (despite weak Q1FY19 margins) on price hikes and cost improvement measures taken by the company. The company foresees opportunities in the energy storage and electric vehicles space. We recommend an ACCUMULATE...