Amara Raja Batteries Ltd | Battery Sector | 2019 Multibagger shares to invest in Indian Stock Market ~ Earning Folio Research & Investments

How to find a fundamentally strong share? This is the holy grail every investor try to find out. It is not easy to find good quality stocks in India market. It needs deep sector analysis as well as overall share market analysis. We found 5 stocks to invest during election time. One of them is Amara Raja Batteries, for which Annual Result Analysis and Q1 result analysis is also published.

Here is a detailed analysis of Amara Raja Batteries Ltd, a must-watch for all. You can read more below:

About the company

BSE: 50008
NSE: AMARAJABAT
ISIN: INE885A01032
SECTOR: Commercial and Residential Batteries

Amara Raja Batteries Limited (ARBL) is a flagship company of the Amara Raja Group. Galla family holds 28% equity while another 24% is held by a private holding company. Earlier Johnson Controls Inc, USA was one of the major stockholder, which is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.

Major products

Industrial batteries
Automotive batteries

Client Engagements

ARBL has prestigious original equipment manufacturers like Maruti Suzuki India Limited, Hyundai Motors India Limited, Ford India Limited, Tata Motors Limited, Mahindra and Mahindra Limited, Honda Cars India Limited, Renault Nissan, Honda Motorcycles & Scooters India Private Ltd, Royal Enfield, Bajaj Auto Ltd, and many more as its clients. The Company's Industrial and Automotive batteries are exported to 32 countries across the globe.

Positive indicators

It has a 24% market share in OEM (Original Equipment Manufacturer) business.
The company enjoys a 30% market share in the replacement market.

Opportunities

Introduction of electric vehicles in India is going to create a boom for the overall battery sector.
Growth in the auto industry will increase demand for automotive batteries.
Growth in the industrial segment with more industries setting up in India under the Indian government flagship Make-in-India project.
Growth in renewable energy source like Solar energy needs storage batteries.

Risk

Very research incentive sector. Constant improvements are required to remain in the market.
With Lithium ION Batteries:

It needs 8 hours charging.
30% of energy is wasted in charging and discharging.

The expected range of price

Share bought around INR 600-700 in Q3 2018-2019 should be around INR 950-1050 in next 18-24 months.

Disclaimer: This is not an advice or recommendation to buy the stock. The illustration is for educational purpose only. Please check with your investment adviser before investing. Please read the detailed disclaimer below.

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