Amara Raja Energy & Mobility Ltd. share price target

Results ahead of estimates: Amara Raja Batteries Ltd (ARBL)s 3QFY2016 results have come in ahead of our estimates, driven by a strong operating performance. On the expected lines, the companys top-line grew by a healthy 16% yoy to Rs1,225cr. The Automotive segment, forming about 55% of revenues, grew in double digits on back of market share gains in both the OEM as well as the replacement segment. The Industrial segment also reported a double-digit growth, led by the telecom sub-segment (telecom forms about 50% of the overall Industrial segments revenues). Given soft lead prices and a better product mix, the companys margins improved by 240bp yoy to 18.7%, coming in higher than our estimate of 17.4%. The margins for the quarter are the highest ever in the last six years. Given the robust operating performance, the net profit at Rs136cr, came in ahead of our estimate of Rs126cr. Outlook and Valuation: ARBL is likely to continue gaining market share in the automotive battery segment. The strategy followed by automotive OEMs of sourcing from multiple vendors as against having a single vendor is likely to benefit ARBL. Further, with the companys strengthening distribution network in the Western and Eastern markets, we...

Amara Raja Batteries' (AMRJ) delivered strong Q3FY16 performance with EBIDTA margin of 18.7% (110bps above our estimate, up 151 bps QoQ and 232 bps YoY), amid lower commodity prices. Company gained market shares, which resulted in healthy volume growth across segments during the quarter. Despite price rationalization, decent double digit revenue growth implies healthy volumes.

Amara Raja Batteries' (AMRJ) disappointing Q2FY16 performance indicates rising competitive intensity, which is visible in its operating margins. Its quarterly result indicates company passing on higher than net realized benefit (net of lower RM cost and higher other expense) to customers, as its EBIDTA margin of 17.2% (170bps below our estimate, down 101 bps QoQ & up by 18 bps YoY) is not in sync with sharp fall in commodity prices.

Amara Raja Batteries (ARBL)s 2QFY2016 results have come in line with estimates. The top-line continued to grow in double digits, but the growth was slightly moderated given the decrease in realization. Realization declined on account of passing of lower lead prices to consumers and due to slowdown in the UPS segment. Still, ARBL managed to keep its margins above the 17% mark. The net profit grew in robust double-digits, and came in line with estimates. Top-line maintains double-digit growth: ARBLs revenues grew a healthy 9% yoy to Rs1,158cr on back of a robust 21% yoy growth in the automotive segment. The industrial segment was a bit subdued, growing by 5% yoy, due to slowdown in the UPS segment. Margin improvement and lower depreciation boosts profitability: For the quarter, ARBLs net profit grew a robust 22% yoy to Rs122.6cr. Margin improvement due to soft lead prices coupled with lower depreciation expenses boosted the profits. Outlook and Valuation: ARBL is likely to continue gaining market share in the automotive battery segment. The strategy followed by automotive OEMs of sourcing from multiple vendors as against having a single vendor is likely to benefit ARBL. Further, given the strengthening distribution network in the Western...

manufacturer in India. It is the largest manufacturer of standby valve regulated lead acid (VRLA) batteries in the Indian Ocean Rim region and manufactures automotive batteries for all vehicle segments. With a production capacity of 18mn units (Automotive: 14.4 mn & Industrial(MVRLA)- 3.6 mn), ARBL has built a strong pan-India distribution network of 18000 retailers and 274 franchisees (Amaron network) & 900 retailers (Powerzone network).ARBL's market share in different segments: 4-wheeler...

ARBL reported highest ever quarterly revenues of Rs. 11.5bn registering growth of 9% YoY led by growth across all verticals of automotive battery business. The EBITDA margin has expanded by 18 bps YoY to...

Amara Raja Batteries's (AMRJ) delivered disappointing Q2FY16 performance with EBIDTA margin of 17.2% (170bps below our estimate, down 101 bps QoQ and just up by 18 bps YoY), despite sharp fall in commodity prices. On account of intensifying competition, slowdown in Telecom segment coupled with lower OEM sales, company has to pass on raw material benefit to customer, which impacted its operating performance.

Amara Raja Batteries's (AMRJ) delivered strong Q1FY16 performance with EBIDTA margin of 18.2% (80bps above our estimate), which is highest in last 22 quarters. On account of improvement in Telecom segment coupled with market share gain in automotive replacement segment, company continue its volume outperformance.

manufacturer in India. It is the largest manufacturer of standby valve regulated lead acid (VRLA) batteries in the Indian Ocean Rim region and manufactures automotive batteries for all vehicle segments. With a production capacity of 18mn units (Automotive: 14.4 mn & Industrial(MVRLA)- 3.6 mn), ARBL has built a strong pan-India distribution network of 18000 retailers and 274 franchisees (Amaron network) & 900 retailers (Powerzone network).ARBL's market share in different segments: 4-wheeler...