Geojit Assigns Buy On This Midcap Auto Ancillary Stock, Target Price Rs. 762

Broking firm Geojit has a Buy recommendation on Amara Raja Batteries Ltd. (ARBL) for a target price of Rs 762 apiece. The brokerage sees a 19% upside potential in the share price.

It is a Midcap company operating in the Auto-Ancillary sector. It has a market capitalisation of Rs. 10,957.62 crore.

Strong performance across segment

Geojit said, "We believe moderation in the raw material price and improving volume will drive margin growth. In addition, the auto sector is likely to show a pick up in H1FY24 owing to a strong rebound in volume and margin expansion. We expect margins to expand due to respite in raw material prices. However, on a 1-year fwd. basis, the stock is trading below its historical average and has shown good attraction in the last month."

It added, "We value ARBL at 13x FY25E EPS with a target price of Rs. 762/share and recommend Buy rating at CMP."

Stock Movement

On Wednesday, the share price of Amara Raja Batteries closed at Rs. 641.50 apiece, up 1.11% from its previous close of Rs. 634.45. apiece. It recorded the 52 week low on 20 June 2022 at Rs. 438.05 apiece and 52 week high on 09 December 2022 at Rs. 668.15 apiece, respectively.

The stock surged 2.11% in the last 1 week. It gave a 38.11% positive return in 1 year. In 3 years, the stock gave 4.75% negative return and 15.6% in 5 years, respectively.

About - Amara Raja Batteries Ltd. (ARBL)

Amara Raja Batteries Ltd. (ARBL) is India's second-largest Lead-acid battery manufacturer. Its segments comprise 70% automotive & the remaining industrial, with market dominance in the telecom segment.

Disclaimer - The stock has been picked from the brokerage report of Geojit. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.