AMARAJBAT

UPDATE 26-08-18 TIME: 7:30 PM

Amara Raja Batteries

Amara Raja Batteries Limited (ARBL) is engaged in manufacturing of industrial and automotive batteries. It was founded in 1985.

ARBL was first to introduce Valve Regulated Lead Acid (VRLA) batteries with three-year warranty in industrial and automotive applications. It was also first to introduce a 60-month warranty for automotive and two-wheeler batteries.

The company has pan India presence with network spread across 18,000 retail outlets, 2,000 service hubs and 400+ PowerZone retail outlets.

The company is largest and dominant market leader of standby batteries in Railways, Telecom, Power Generating stations in India. It is the largest manufacturer of stand VRLA batteries in South Asia.

ARBL owns one of the largest and most modern automotive battery plants in Asia with a producing capacity of 2.5million batteries per annum.

Amara Raja Group on February 2,2011, unveiled a new identity coinciding with its silver jubilee celebrations. On the occasion the group Chairman, Dr. Ramachandra N. Galla announced setting up of Amara Raja Digital World City (ARDWC) and shared group’s vision to achieve $25 billion revenue by 2025 and continue to create non-migratory jobs.
Business of the company:

Industrial- Under this it manufactures and market five products namely Powerstack, Amaron Quanta, Amaron Volt, Amaron Sleek and Applications. Its clientele includes big names like BSNL, MTNL, Lucent, Alcatel, Siemens, Nokia, Ericsson, Alstom, Crompton Greaves, etc.

Automotive- It manufactures and market automotive batteries under the name Amaron.  Under Amaron it has introduced products like Pro, Flo, Go, Black, Fresh, Hi-way, Harvest, Sheild, and Optima caters to various automobile needs.

The company exports automotive batteries to countries namely Singapore, Malaysia, Hong Kong, Thailand, Vietnam, Philippines, China, Japan, Greece, Australia, Dubai, Omen, Bahrain, UAE, Kenya, Tanzania, South Africa and many more.

The company has been supplier to big companies like Ashok Leyland, Fiat, General Motors, Hindustan Motors, Honda, Hyundai, Mahindra & Mahindra, Maruti and Tata Motors, Daimler Chrysler and Ford.

Group companies:

Galla Food

Amara Raja Power Systems

Amara Raja Electronics

Mangal Precision Products

This Mid Cap stock with Good quality

valuation Expensive

Mildly Positive for Long Term.

Negative quarterly financial trend but Mildly Bullish technicals, it looks Mildly Negative for Near Term.

Quarterly Financial Trend  – NEGATIVE

Operating CF (A) Lowest at Rs 321.66 Cr / Cash and Cash Equivalents (HY) Lowest at Rs 111.28 c

Technicals  — MILDLY BULLISH

Technical trend turned Mildly Bullish from Mildly Bearish on 14 Aug 2018 at Rs 845.4

Moving Averages (daily) turned Mildly Bearish from Bearish on 23 Jul 2018 at Rs 790.2

MACD (weekly) turned Bullish from Mildly Bullish on 13 Aug 2018 at Rs 829.4

 

Quality — GOOD

Good quality company basis long term financial performance.

Second largest company in Batteries sector

 

Valuation  — EXPENSIVE

Over the last year, Price (11.03%) has increased more than Earnings (8.22%)

At the current stock price and financial performance the stock has Expensive valuation

1 Week Return 1.14%

Outperformed Sector By 0.09% and Underperformed Sensex By -0.42%

 

1 Month Return 8.14%

Underperformed Sector by 0.00% and Outperformed Sensex by 4.26%

 

Year To Date Return 2.84%

Underperformed both Sector by -7.38% and Sensex by -9.47%

 

1 Year Return 11.03%

Underperformed both Sector by -12.20% and Sensex by -10.03%

Performance Today : Outperformed Sector by 0.74%

Moving Averages: Stock has traded higher than 20 day, 50 day, 100 day and 200 day moving average but lower than 5 day moving average.

Falling Investor Participation: Delivery Vol of 86.53 k on 24 Aug has fallen by -66.11% against 5-day avg delivery vol

Liquidity: Based on 2% of 5 day average traded Value the stock is liquid enough for trade size of Rs 1.89 cr

 

Industry—Batteries

Market cap Rs 14,118 Cr (Mid Cap)

P/E 29.14 / Industry P/E –31.57 / Dividend Yield 0.50 %

Debt Equity — 0.01 / Return on Equity — 16.49 % / Price to Book 4.81

Net Sales Rs 1,778.67 cr / Net Profit (Quarterly Results – Jun 2018) Rs 113.03 Cr

Standalone Quarterly Results

Total Operating income JUN 218

1,778.67

JUN 2017

1,671.28

6.43%
Net Sales 1,778.67 1,671.28 6.43%
Other Operating Income 0.00 0.00
Total Expenditure (Excl Depreciation) 1,558.41 1,478.45 5.41%
Raw Material Cost 1,181.24 927.37 27.38%
Purchase of Finished goods 76.55 89.59 -14.56%
(Increase) / Decrease In Stocks 14.06 31.70 -55.65%
Employee Cost 84.27 80.78 4.32%
Power Cost 0.00 0.00
Manufacturing Expenses 202.29 175.18 15.48%
Selling and Distribution Expenses 0.00 0.00
Other Expenses 0.00 173.83 -100.00%
Operating Profit (PBDIT) excl Other Income 220.26 192.83 14.22%
Other Income 13.71 13.68 0.22%
Operating Profit (PBDIT) 233.97 206.51 13.30%
Interest 1.49 1.37 8.76%
Exceptional Items 0.00 0.00
Gross Profit (PBDT) 232.48 205.14 13.33%
Depreciation 62.95 54.42 15.67%
Profit Before Tax 169.53 150.72 12.48%
Tax 56.50 50.87 11.07%
Provisions and contingencies 0.00 0.00
Profit After Tax 113.03 99.85 13.20%
Extraordinary Items 0.00 0.00
Prior Period Expenses 0.00 0.00
Other Adjustments 0.00 0.00
Net Profit 113.03 99.85 13.20%
Equity Capital 17.08 17.08
Face Value (IN RS) 1.00 1.00
Reserves 0.00 0.00
Earnings per share (EPS) 6.62 5.85 13.20%
Diluted Earnings per share 6.62 5.85 13.16%
Operating Profit Margin (Excl OI) 12.38% 11.54% 0.85%
Gross Profit Margin 13.07% 12.27% 0.80%
PAT Margin 6.35% 5.97% 0.38%
Public Share Holdings (%) 0.00% 0.00%
Pledged Promotor Holding (%) 0.00% 0.00%

 

Share Holding Pattern

AMARAJBAT
AMARAJBAT

 

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