Amara Raja Energy rallies over 11% on positive outlook for battery sector!

Today, the shares of Amara Raja Energy & Mobility Limited zoomed over 11%. Additionally, the stock hits a fresh 52-week high mark of Rs 979.05 apiece on BSE. Furthermore, the scrip witnessed a spurt in volume by more than 4.65 times. The company’s current market capitalization stands at Rs 17,726.01 crore.

Share Performance:

On Tuesday, the stock opened at Rs 865, with the previous closing being Rs 870. The 52-week high and low are Rs 979.05 and Rs 568.25, respectively as per BSE.

Recent Development:

The recent surge in the battery segment can be attributed to the positive outlook from investors, buoyed by the confidence shown by renowned international brokerage firms. Analysts anticipate Amara Raja Batteries Limited to maintain its leading position in the organized lead-acid battery industry, driven by client acquisitions, strategic product launches, and leveraging its expansive distribution network.

Furthermore, the brokerage emphasizes the company’s strong long-term revenue prospects, particularly due to its focus on the aftermarket segment. Additionally, Amara’s investment in lithium-ion battery cell manufacturing is poised to fuel its long-term growth, with the anticipated commencement of deliveries from the new plant in FY26.

About the Company:

Amara Raja Energy & Mobility Limited, a prominent entity within the Amara Raja Group, stands as a technology leader and one of India’s foremost producers of lead-acid batteries. With a focus on both industrial and automotive applications, ARBL holds a significant position in the Indian storage battery industry.

Business Development:

The product-wise breakdown for Amara Raja Batteries Limited indicates that the majority of its revenue comes from storage batteries, accounting for 98.65% of its total product value. The remaining 1.35% is attributed to home UPS systems.

In terms of geographical distribution, 88.13% of the company’s revenue is generated within India, with the rest of the world contributing 11.87%.

Furthermore, the stock has experienced significant buying activity, yielding returns of more than 69% in the last one year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.