LIC-Backed BSE 500 Stock Declares 480% Interim Dividend, PAT Up 13% In Q2: Buy?

Amara Raja Energy & Mobility Ltd is a mid-cap company in the consumer discretionary sector. In the Indian storage battery market, Amara Raja Energy & Mobility Limited is the pioneer in technology and among the leading producers of lead-acid batteries for use in automobiles and industrial settings. Under the trademarks Amaron® and PowerZoneTM, the company is a prominent manufacturer of automobile batteries and home UPS/Inverter batteries. Amara Raja Energy & Mobility Limited is the go-to supplier for the country's top telecom service providers, telecom equipment manufacturers, the UPS industry (OEM & Replacement), Indian Railways, the power, oil & gas, and other industries.

Amara Raja Energy & Mobility Dividend

"Pursuant to Regulation 30, 42 and 43 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors had declared an interim dividend of Rs. 4.80/- per equity share (representing 480%) of Re.1/- each fully paid up for the financial year 2023-24 and the said interim dividend will be paid on or before November 29, 2023.Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, the Board of Directors had fixed Friday, November 10, 2023 as the "Record Date" for the purpose of payment of Interim Dividend for the Financial Year 2023-24.

Accordingly, members whose name appear as on close of business hours as on November 10, 2023 (a) as beneficial owners as per the details furnished by the Depositories in respect of shares held in electronic form and (b) as members in the Register of Members would be entitled for the said interim dividend pay-out," said Amara Raja Energy & Mobility in a stock exchange filing.

Amara Raja Energy & Mobility Q2 Results

In comparison to Rs 2,699 crore a year-ago quarter, the company's standalone revenue for the second quarter of FY2024 was Rs 2,810 crore, which is a rise of 4% YoY. According to the firm, its net profit for Q2FY24 was Rs 214.32 Cr, up from Rs 202.17 Cr in Q2FY23. The company said on Tuesday that its Q2 FY'24 profit before tax was Rs. 293.46 crores, representing a 6% increase over Q2 FY'23. For the second quarter of FY'24, the earnings per share (EPS) is Rs 12.55.

Mr. Harshavardhana Gourineni, Executive Director, Automotive & Industrial Batteries says, "Our automotive and industrial businesses witnessed consistent performance. As a company, we are proceeding with renewed vigor by building our product range, penetrating new geographies, establishing new customer partnerships, and driving operational excellence."

"In the New Energy segment, we have seen a healthy growth from chargers and increasing interest in cells and battery packs. Our work on the Gigafactory and e+ Energy Labs, the advanced energy research and innovation center, is progressing smoothly and we are keeping a close eye on the evolving market conditions in this space," says Mr. Vikramadithya Gourineni, Executive Director, New Energy Business.

Mr. Jayadev Galla, Chairman & Managing Director of ARE&M said, "The last quarter marked a significant milestone in the Amara Raja growth story as we announced our official name change from Amara Raja Batteries to Amara Raja Energy & Mobility. This strategic change underscores our commitment to the evolving nature of the industry by moving away from being just a battery maker to becoming a comprehensive solutions provider in the Energy & Mobility sector."

Amara Raja Energy & Mobility Share Price Target

"Amara Raja Batteries Ltd (ARE&M) is small cap and it has delivered around 20% return YoY. Right now, its current PE is 1/3 of its sector's PE, however, it has delivered higher FDY compared to its sector. With the current price at 616 and with a 52-week low and High levels are 509.35 and 706 respectively, it is currently trading just near its 200-day EMA which is nearly 618 with a "Bearish Death cross down". It looks bearish below 611 and bullish above 630. Its current RSI is 47 at weekly and 51 at daily time frame, which may attract more long-term investors. But I would recommend initiating fresh buying above 630 if you have an intention to hold for short-term gains", said VLA Ambala - SEBI Regd. RA and Co-founder of Stock Market Today.

Amara Raja Energy & Mobility Shareholding Pattern

Amara Raja Energy & Mobility reported promoters' shareholding of 28.06%, FIIs stake of 24.64%, DIIs stake of 16.81% and public stake of 30.50%. As per the shareholding company of Amara Raja Energy & Mobility for the July-September 2023 quarter, insurance giant LIC held 1,23,54,916 shares or a 7.23% equity stake in the company.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.