Amara Raja Batteries - First Cut - Microsec

Amara Raja Batteries announced its Q2 FY12 results on 14 Nov 2011. The company's Net Sales increased by 43% YOY and by 7% QOQ to INR560 crore while its EBITDA increased by 55% YOY and 30% QOQ to INR88 crore. EBITDA Margin of the company increased from 14.5% to 15.7% YOY. PAT of the company increased by 64% YOY and 33% QOQ to INR52 crore.

The company has delivered solid growth both in topline and bottomline. The industrial battery business has reported substantial improvement in volumes and revenue. It has increased its market share in both the segment of telecom and UPS.

We advise the investors to Buy the stock at the current level of INR209. At the CMP of INR209, the stock discount its FY12E EPS of INR22 by 9.5x.

Source : Equity Bulls

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