Amara Raja Energy & Mobility Ltd. share price target

Amara Raja Batteries Ltd (ARBL) is India's second largest Lead-acid battery manufacturer. Its segment include 70% from automotive & rest from industrial with a market leadership in Telecom segment. During Q1FY21, ARBL revenue came at 37%YoY due to subdued auto demand and lockdown. However, pickup in auto replacement market and in telecom sector has offset further decline. EBITDA margin came at 13.2% better than expected due to lower lead price and cost control initiatives. Material cost lowered by 110bps....

Amara Raja's Q1FY21 result was better than our expectation. Its sales/EBITDA were 5.7%/5.4% above our estimate. Its sales fell by 36.6% YoY to Rs 11,512 mn due to the nationwide lockdown amidst weak demand from OEMs/exports. Amara Raja's EBITDA fell 45.5% YoY to Rs 1,522 mn and EBITDA margin contracted 216 bps YoY to 13.2%. Amara Raja's net profit decreased 55.7 % YoY to Rs625 mn. We make minor changes to our FY21-22 forecasts. We value the stock at a PER of 20x...

Amara Raja Batteries Ltd (ARBL) is India's second largest Lead-acid battery manufacturer. Its segment include automotive and industrial lead acid batteries, with market leadership in Telecom segment. Under challenging market condition domestic replacement demand and export has substantially overcome the demand slowdown in Auto OE segment aided by significant traction in volume growth. During Q4FY20, ARBL revenue came flat at 0.9%YoY, (marginally inline with our estimate). PAT grew by 14.5%YoY. Despite weak demand, EBITDA margin came at above 15% (-10bps),...

Background: Amara Raja Batteries Ltd (ARBL) is the second largest automotive battery manufacturer and the largest supplier of industrial storage batteries in India. JCI, the global leader in lead-acid automotive batteries and advanced batteries for start-stop, hybrid and electric vehicles, provides technical support to ARBL. Company's business model is de-risked as it caters to automotive as well as industrial segments. Sales are...

We expect margin trajectory to be better than most ancillaries on the back of (1) sustained strength of automotive replacement segment in overall mix, (2) benign outlook for lead prices (currently at ~US$1635/tonne vs. Q4FY20 average of ~US$1800/tonne). B2C nature of aftermarket, inherent pricing power (near oligopoly on supply side, demand is fragmented) are seen leading to flattish margin performance in FY21E (negating impact of limited...

1 June 2020 AMRJs 4QFY20 performance beat was driven by a better mix (lower OEM sales). While aftermarket continued with strong growth, endorsing our view of value migration from unorganized, 4Q saw recovery in Telecom. We downgrade rating to Neutral as valuations fairly reflects for recovery and market share gains. Our TP is INR719 (18x Mar22 EPS, 10% discount to 10 year LPA). 4QFY20 revenue/EBITDA/PAT grew 0.9%/0.4%/14.5% YoY to ~INR15.8b/INR2.4b/INR1.4b. FY20 revenues/EBITDA/PAT grew 0.7%/15%/37% YoY to ~INR 68.4b/INR11b/INR6.6b.

decline in volume in the auto OEM segment was offset by growth in the domestic replacement segment and exports. The home UPS segment was under pressure, as the seasonal demand for inverter batteries was severely impacted by the lockdown restrictions in March. EBITDA was Rs 2.4bn (+0.4% YoY) and margin was 15.4% (-82bps QoQ). The negative operating leverage was partially offset by fall in lead prices, a better product mix and cost control measures. APAT grew15% YoY to Rs 1.36bn due to lower tax rate....

Background: Amara Raja Batteries Ltd (ARBL) is the second largest automotive battery manufacturer and the largest supplier of industrial storage batteries in India. JCI, the global leader in lead-acid automotive batteries and advanced batteries for start-stop, hybrid and electric vehicles, provides technical support to ARBL. Company's business model is de-risked as it caters to automotive as well as industrial segments. Sales are...

Amara Raja Batteries Ltd (ARBL) is India's second largest Lead-acid battery manufacturer. Its segment includes automotive and industrial lead acid batteries, with market leadership in Telecom segment. During Q3FY20, ARBL revenue grew by 3.1%YoY, (marginally in-line with our estimate) due to strong replacement market....

Amara Raja's result was slightly better than our expectations. Its top-line was 8.3% above our estimate; however, EBITDA margin was 72 bps below our forecast. Amara Raja's sales increased 3.1% YoY to Rs17 bn and EBITDA increased 12.2% YoY to Rs2.8 bn. EBITDA margin expanded 132bps YoY mainly due to price hike taken by the company in the last one year. Amara Raja's net profit growth of 25.4% YoY to Rs 1,642...