Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
27 December, 2014 05:02 IST
'Amara's consistent Q3 vs. Exide's weak Q3 will be taken as large positive'
Source: IRIS Exclusive | 29 Jan, 2013, 12.48PM
Comments  |  Post Comment

Nomura Financial Advisory and Securities has maintained 'Buy' on Amara Raja Batteries with price target of Rs 299 as against current market price (CMP) of Rs 299 in its report dated Jan. 28, 2013.

Amara Raja Batteries reported another strong set of results. 3QFY13 PAT came in at Rs 809 million, which was 16% ahead of its estimates (Rs 694 million) and 7% ahead of consensus (Rs 757 million). EBITDA margins came in at 16% while it has expecting 14.4%. The beat is led by lower than expected RM/sales (100 bps) and lower other expenses/sales (60 bps).

Despite a sequential increase in LME lead prices, a strong EBITDA margin was a key positive. It notes that the company has taken around a 3.5% price increase in Dec-12, which should support margins in 4Q as well, in Nomura's view.

''Furthermore, an increase in capex plans announced by the company highlights increased conviction in volume growth, in our view. Improved demand in telecom segment is also positive for the company. We believe that current volume run-rates for both auto and industrial segments are already coming close to our FY14F estimates. We may revisit our earnings estimates post management comments,'' said Nomura.

''We believe that consistent performance of Amara Raja Batteries vs. disappointing performance of market leader Exide will be taken as a large positive by the market. We expect the stock to react positively to these results,'' it added.

Click here to view full report

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.



Amara Raja Batteries Limited   (Q,N,C,F)*

Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type    into this box
Related Articles
Induslnd Bank expands presence across Rajasthan - 26-Dec-2014 17:02
ICICIdirect maintains `Buy` on Mastek - 26-Dec-2014 16:57
HDFC Securities maintains `Neutral` on Union Bank of India - 26-Dec-2014 16:49
Induslnd Bank expands presence across Delhi NCR - 26-Dec-2014 16:33
Lupin gets FDA approval for Generic Epivir tablets - 26-Dec-2014 16:19
Dr Reddys clarifies on news report - 26-Dec-2014 15:51
HDFC Securities maintains `Buy` on Bank of Baroda - 26-Dec-2014 14:33
NMDC names Satpathy as director - 26-Dec-2014 13:45
Reliance Capital to issue 7 mn shares to Sumitomo Mitsui - 26-Dec-2014 13:28
Zensar announces multimillion dollar deals in infrastructure biz - 26-Dec-2014 12:42
Market wide rollover at 83.05% vs. 85.33%: ICICIdirect - 26-Dec-2014 11:47
more...
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer