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Amara Raja Shares In Focus As Anand Rathi Upgrades To Buy On Strong BESS Outlook — Check New Target Price

With industry outlook improving, Amara Raja is expected to gain market share in the coming quarters.

Amara Raja Shares In Focus As Anand Rathi Upgrades To Buy On Strong BESS Outlook — Check New Target Price
Anand Rathi upgrades Amara Raja rating to Buy and revises target price.
(Photo: Company website)

NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Anand Rathi has turned positive on Amara Raja Energy and Mobility Ltd. as demand visibility strengthens across the automotive and industrial lead-acid battery segments. With industry outlook improving, the company is expected to gain market share in the coming quarters.

Further, margin is expected to expand with new tubular battery and recycling plant. It also plans to set up a lithium-ion cell manufacturing plant, which is expected to commence operations from end-FY27. Further, one 5GWh BESS solutions plant has been approved with a revenue potential up to Rs 2,800 crore by FY30e. The brokerage introduces estimate for FY28e with 8/12/14% revenue/Ebitda/PAT growth.  

Consequently, Anand Rathi has upgraded the rating to Buy, assigning a revised target price of Rs 1,050 (earlier Rs 1,125). The valuation is based on 12x FY28 parent EPS, along with an ARA-CT NPV of Rs 210/share for the new lithium energy unit and Rs 73/share for the BESS business.

Click on the attachment to read the full report:

Anand Rathi Company Update.pdf
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