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Will Up Move Continue In Amara Raja Battery ??

Will up move continue in Amara Raja Battery ??

Amara Raja Batteries Ltd is aiming to be a Rs 10,000-crore entity in the next 2-3 years as the Hyderabad-based company clocks a solid double-digit growth in its automotive segment, said a top company official. ARBL expects that its automotive segment will contribute around two-thirds of its overall sales in the next 2-3 years as the vehicle sector grows and the rest will come from the industrial segment, said CEO S Vijayanand.

Besides, the company sees potential in the solar segment, which requires clean batteries for energy storage, as thrust on green energy is on the rise. The company is registering a CAGR of around 14-15% in its revenue over the past five years. The automotive and industrial segments contribute to the ratio of 60:40 in the revenue pie.
– The company is eyeing development of 100 smart cities by the government that requires solar energy solutions and may participate directly if there is large order.
– Various ultra mega solar parks are being set up in different states and Amaraja has big bidding plans.
– The company exports 12-15% of its volumes to South-East, South Asia, the Middle East and some African countries – in both industrial and automotive segments.
– The company is one of the dominating other than Exide in the overall battery market in India estimated at Rs. 27000 Crores.

 

The Strong up move has been witnessed in the recent breaking above the overhead resisting trend-line. The move was backed by sustained quarterly result and couple of development throughout the sector and company. The followup action was positive and the stock continues to trade higher above the minimal retracement levels of 38.2% retracement of the recent decline. The lows were well supported by 50% retracement of the advance on long-term chart. This indicates a trend reversal and fresh rally in progress. A couple of lows placed around 835-855 levels will act as stiff resistance in upcoming days. The resistance also the confluence of 61.8% retracement of the recent decline with medium-term overhead resisting trend-line at the same juncture. One should keep watch on this counter and the levels mentioned.

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