Name: Latest research reports of Amara Raja Energy & Mobility Ltd. authored by Motilal Oswal and published by - Trendlyne research reports.
Item: Amara Raja Energy & Mobility Ltd.
Rating: 3
Author: Motilal Oswal

Above est.; Sharp recovery in demand across segments

Neutral: Amara Raja Energy & Mobili...

Target

Motilal Oswal

Amara Raja (AMRJ)'s 2QFY21 performance was driven by sharp demand recovery across segments post the lifting of the lockdown. 3QFY21 would see some RM cost pressure due to lead price inflation; however, sustenance of demand momentum would dilute the impact through a price passthrough and operating leverage. We upgrade our FY21/FY22E EPS estimates by 7.7%/1.3% to factor in a volume upgrade. Maintain Neutral, with TP of INR800 (18x Sep'22 EPS) as valuations fairly capture expected growth. 2QFY21 revenue/EBITDA grew by ~14%/16% YoY to ~INR19.4b/INR3.4b....