Amara Raja at low valuations: Why the organized battery lead

Amara Raja at low valuations: Why the organized battery leader is stock pick of the week


Amara Raja at low valuations: Why the organized battery leader is stock pick of the week
Synopsis
Amara Raja is a strong player in the replacement battery market and is expected to benefit from the emerging replacement demand surge. Besides, its effort to increase its market share in OEM is also gaining traction which has made the company a favourite of analysts.
After remaining on the sidelines, Amara Raja Batteries is making a comeback as analysts’ favourite, after reporting better than expected results for the fourth quarter of 2020-21. Though its immediate demand outlook is hazy due to covid, its medium-term demand outlook remains strong. Since batteries are usually replaced every 3-4 years, the demand fall in one quarter will get compensated in the quarters to come. Also, given the fact that Amara

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