Is Amararaja Batteries a growth stock or Value
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Emerging companies - Mid caps that can become large cap
Forum Discription: These are companies operating in growing markets having have certain niches or specific attributes like new sector plays. These are emerging multibaggers with high risks and high rewards.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=173
Printed Date: 28/Apr/2024 at 8:26am
Topic: Is Amararaja Batteries a growth stock or Value
Posted By: manishdave
Subject: Is Amararaja Batteries a growth stock or Value
Date Posted: 14/Aug/2006 at 10:28am
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Or both? Company is trading at p/e of 10. Not very high but not too low either. But It plans to grow by 100% in two years. I like management as they never came out with rights issue. Company is almost always debt free. They have good technology and succesfully entered automative batteries against dominant player Exide. Exide should be afraid of Amararaja. The way auto industry growing in India, replacement cycle will be mint for this comapany.
Some investors worry about lead price but I believe that all manufacturers will pass on the increase of metal price(that is also called inflation).
This is also among very few companies that hit new high after recent mkt crash.
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Replies:
Posted By: Vivek Sukhani
Date Posted: 14/Aug/2006 at 11:40am
| Excellent pick. But the dividend yield is pathetic. I would wait for the time the management becomes more confident regarding its future performance.Also, to my surprise, I see lot of fluctuations in EPS, which makes me a bit tentative. But its a buy on declines for sure.However, technically speaking, this scrip faces a good probability of entering a mid-term decline stage, and a fall to 240-250 cannot be ruled out.On the higher side, I would pare some holdings @410 and then @570.But a good observation, and I would be very keenly watching this company hence on. |
Posted By: basant
Date Posted: 15/Aug/2006 at 6:41pm
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Amara Raja Batteries - Growth or Value
Amara Raja Batteries (CMP 332) is a small cap company having technical backing of Johnsons Control of US. The company is a major player in the valve regulated lead acid (VRLA) batteries that are used in automobiles, industrial applications such as telecom, power and information technology, among others.
Amar Raja ventured into the automotive battery market in the late 1990s. It has since made a steady progress in the automobile segment, which now accounts for over 50% per cent of the turnover Over the past few quarters the company managed to increase its profits which had taken a backseat due to lower realizations in the industrial battery market and also because of the rising advertisement costs. Last year the company bagged exclusive orders to supply batteries to Swift — Maruti's latest model in the passenger car market. This along with the bagging of orders for other Maruti models has provided further impetus to growth. The Board of Amar Raja Batteries recently approved a scheme to invest Rs 88.2 crores to increase its automotive battery capacity by 50% from 3.6 mm units per annum to 5.4 mm units per annum by Fy 08. The completion of present expansion shall increase the capacity (54 lac unites) by over 400% from September 2001. Many companies manage to do what Amar Raja has done but few manage to do it the way they have done it. The company has increased capacity without diluting any equity over the past 4 years
Over the next 5 years the Indian car market is going to explode and also with increasing Industrial activity demand for the Amar Raja’s products is bound to go up in future. The Company has also expanded its retail network to 135 franchisees from 125 at the end of the previous fiscal. The Company currently has a pan Announcing the investment plans the management says that they have been extremely successful in expanding the OE & replacement business and also increased their Export business.
The expansion in operating margins by over 330 bps to 14.74% from 11.24% over the corresponding quarter of the previous year was a remarkable achievement especially so in the backdrop of higher lead prices. This shows that the company has managed to comfortably pass on the increase in cost to the customers. The company hopes to consistently scale up capacity to gear itself to tap the growing batteries market. The Management expects the turnover to exceed Rs 1000 crores post the expansion. Assuming that these plans fructify the stock could see some serious buying before the expansion actually takes place. P.S: Manish you could add something more on this since you hold this stock for quite sometime now.I must admit i never looked at it seriously till date but it seems to have both growth and value built into it. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
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Posted By: manishdave
Date Posted: 15/Aug/2006 at 12:32pm
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Viviek,
yield is pathetic because things have changed for better recently for the company. You are right about fluctuation in EPS. I will explain there things further. But I dont agree with you that management is not confident abt. future. In fact they are very confident.
Basant,
Thanks for nice writeup. I know I dont write good and may be I am lazy too.
I think Amararaja is misunderstood company. There was some speculative activity in this company at time of KP, may be he was involved with that. But company pays good amt of tax and they never came with rights issue so I am least worried abt moral part. Company is BV of 175+ without rights premium. Every ruppee they have earned after tax and company is not really very old.
Company started with maintenance free industrial battery. Performed good. They they added automative batteried and that was tought nut to crack. It required brand. So this is reason for fluctuation in EPS. But now they have established themselves in automative segment and I see better future.
Company used have more payout on dividend but recently they have been adding capacity agressively and they dont dilute equity so less dividend. Company had capacity of 1m batteries in sept 2001 and will have capacity of 5.4m in mid 2007, without diluation.
What I m looking for in this company is replacement cycle. Auto boom started in 2003. That replacement cycle should start anytime now so even if auto industry doesn't grow, replacement will keep on going up. There much more money to be made on replacement batteries. If somebody is buying 200,000 batteries, they will negotiate to tooth and nail. They know cost of everything. Replacement is where they make nice profit.
They have started concenpt of pit stop. They collect your old battery for some money and then recycle lead. Brilliant idea.
Now they got the scale I think company is in sweet spot.
Amararaja started supplying to OEM so replacement they will get preference too.
Parent company of EXIDE is truggling hardly. Partner of Amararaja is very strong. This will help in future.
Higher energy price should help battrery mkt. Where ever you use solar, you need battery. Hybrid/electric cars will need bigger batteries.
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Posted By: Vivek Sukhani
Date Posted: 15/Aug/2006 at 12:39pm
| Mr. dave, I didnt know much about the management but I treat low dividend declaratiion in that fashion. Kindly carry on...The management may be very confident but I become confident of the confidence of the management, if they start to pace up their dividends.I take back my words. |
Posted By: manishdave
Date Posted: 15/Aug/2006 at 3:29am
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Viviek,
I love higher dividend too. But think as if you are running Amararaja Batteries. If you see lot of opportunity and you need to invest 82 Cr - which they are planning to do - you would conserve cash. in past company has distributed upto 40% of profit.
I rate management good for two reasons:
1. They have high BV just our of profit and after tax.
2. They have successfully penetrated automative battery mkt.
What are your picks? You mentioned TIL somwhere. Do you own that stock? I do by the way.
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Posted By: Ajith
Date Posted: 15/Aug/2006 at 8:45am
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The key,I think,as mentioned by Mr. Basant is the tie-up with Johnson Controls which also has an equity stake if I remember correctly.It all depends on how good Johnson Controls is. Recently I sold off Exide because I do not think their stanglehold on the market can last in the longterm.I recently saw an ad for a Bosch battery.
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Posted By: manishdave
Date Posted: 17/Aug/2006 at 10:26am
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CNBC's Interview with CFO: http://www.moneycontrol.com/india/news/business/gopalmahadevanamararajabatteries/expansiontocompletebysept07amararajabatteries/09/14/article/234965 - http://www.moneycontrol.com/india/news/business/gopalmahadevanamararajabatteries/expansiontocompletebysept07amararajabatteries/09/14/article/234965
Highlights:
Growth last year was 66%.
In Q1 growth was 85%YoY.
Replacement mkt share is 20% which they plan to increase by 5-7%.
projected turnover in two years 1000cr.
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Posted By: basant
Date Posted: 17/Aug/2006 at 10:33am
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Manish with due regard to the market I am perplexed why this stock ran up yesterday. there was nothing new in the interview and since I knew most of it I am sure you would have since you have been a keen follower of this company.So the stock price should have discounted all this before the interview. But that is how markets behave. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 31/Oct/2006 at 10:18pm
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For the September quarter Amarraja reported stunning numbers sales increased by 51.63% to Rs 132.02 crores from rs 87.07 crores while net profits increased 177.51% to Rs 12.71 crores from Rs 4.58 crores. There was an expansion in operating margins by 166 basis points to 16.77%.
The company seems to have entered a new growth orbit and as the benefits of increased capacity rolls in the numbers should continue to move in this trend over the next few quarters. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: manishdave
Date Posted: 31/Oct/2006 at 10:36pm
| The way company is going, it is not impossible to pass Exide in 5 years. Amararaja started getting OEM orders only last year. Those batteries would come for replacement in 2 years and that is going to get bigger. People are more likely to replace battery with the same brand. Their concept of pit stop is great. They also dont have much debt so growing is not a problem for them. |
Posted By: us121
Date Posted: 03/Dec/2006 at 7:30pm
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AmaraRaja has got huge market share in Telecom Idustry. Every cell site provides 2 to 4 hours of battery backup to provide power in case of electricity failure. The replacement cycle here is about 2 years. They have been lead supplier to this indusrtry since 1998-99.
Also there is a huge expansion going on in Mobile communication industry. Every operator is planning to increase cell sites by almost double in next 12 months.
Also there is a big tender coming up under UOF i.e. universal obligation fund which is suppose to provide subsidy for rolling out about 8000 sites in the villages where there are no means of communication. Tender is likely to be out very soon.
Each of this site is suppose to be built by infrastructure provider under tender. they can be likes of any of the existing operator/ gil infra/ american towers/ essar group etc. However, the same site infra will be shared by minimum of three operators.
Each of this site will require huge amount of battery back up as the power situations at these places is likely to be horrible. Also the capacity of battery bank is going to be high as they have to support three operators.
The only word of caution is the margin may be low as this will be bulk supplies to the infrastructure builder.
AmaraRaja is going to benefit a lot. the second company is going to be HBL, though their market share till date is not very high.
------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: India_Bull
Date Posted: 05/Dec/2006 at 1:42am
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Amarraja is going down in the rising market though the prospectus are good..
Does anyone has any idea?
------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: manishdave
Date Posted: 05/Dec/2006 at 4:19am
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Sandeep,
Answer to you question is lead prices.
http://www.kitcometals.com/charts/lead_historical_large.html#6months - http://www.kitcometals.com/charts/lead_historical_large.html#6months
http://www.kitcometals.com/charts/lead_historical_large.html#lmestocks_6months - http://www.kitcometals.com/charts/lead_historical_large.html#lmestocks_6months
In 3 months lead prices can even spike as there is not enough stockpile. But I am not worried much as lead batteries dont have substitute.
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Posted By: sunny_agarwal
Date Posted: 12/Mar/2007 at 10:27pm
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A fantastic company with solid groth prospects. Stock looks great at current market prices. This company is a direct play on indias automotive and industrial battery market. the bst play in this sector. solid financials and solid pedigree. ------------- Be the change you wish to see in this world!!! |
Posted By: Vivek Sukhani
Date Posted: 12/Mar/2007 at 10:42pm
| The promoters of Amara Raja batteries, Johnson Controls, has a wonderful pedigree. This Company, Johnson Controls has continuously increased dividend pay-out for 30 years... the EPS has increased for more than 50 years straight. I beleive, this is one stock, which is wonderful multi-bagger. They will also enter into Car interiors and upholstery in some time, given that it is one of the major business segments of Johnson Controls. They are already into power systems... this division will add feather to their cap. |
Posted By: us121
Date Posted: 13/Mar/2007 at 9:56pm
Tatas have recently launched the batteries and they have big plans.
What are the likely effect of this on AmaraRaja?
Any analysis available?
Amara Raja is one of the OEM to Tata also. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: India_Bull
Date Posted: 18/Mar/2007 at 12:44pm
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I have got a copy of latest report on Auo Ancillaries of Motilal Oswal. They have downgraded Amararaja Batteries to Neutral .(Unfortunately this has come at a time when I have started buying it !!!- )
If someone wants to have a copy of the same PM me with personal id.
Stock looks attractive at current prices but moves in tandem with Sensex.
Disclaimer - I read the reports from fund houses to get the facts and figures and not for their opinion and price targets.  ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: basant
Date Posted: 19/Mar/2007 at 1:36pm
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Thanks for that report. It seemed rather strange for MOST to write this company as neutral. They expect EPS to grow at more then 37.3%% between Fy 06-09 then why would a stock trade at a PE of 7 times FY 08?
Personally while I am not having any positions in this company it does seem attractive. The increase in lead price (raw material) is a concern no doubt but that applies to every manufacturer across the globe. ALso Amaraja should be able to shift its rising input material cost if that happens.
Stocks could outperform or under perform no one knows that but at least a report should get its logic correct. I hope I am not upsetting any MOST fans by writing all this but Ramdeo baba does need to meditate through all this again!
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: us121
Date Posted: 13/Apr/2007 at 11:44pm
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Investment Advisor SP Tulsian is of the view that http://www.moneycontrol.com/india/stockpricequote/electricequipment/amararajabatteries/18/34/pricechartquote/marketprice/ARB - Amara Raja Batteries has target of Rs 500. < ="http://202.87.40.52/promos/sponsor_news.js">Tulsian told CNBC-TV18, "Amara Raja battery is into storage and automative batteries, having 52% promoter’s stake, which is held 26% by Gala family and 26% by Johnson control. For FY07, the company will have a topline of about Rs 550 crore with the bottomline of about 40 crore, translating into an EPS of more than 38. The company presently has 3.6 million units production facility, which they are ramping up to 5.4 million and this capacity will be on by second quarter of FY08. So, FY08 probably will have a topline of 750 crore with the bottomline of about 55-57 crore, which will give an EPS of Rs 48-50. So if one takes the present price of 373, my price target is that it should rule atleast by Rs 500 by the time they will announce their expansion capacity and the fruits of that will start flowing into the company. So, next six-twelve months or maybe nine-twelve months, I have a price target of more than Rs 500 from the present level of Rs 375." source: moneycontrol.com ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: basant
Date Posted: 13/Apr/2007 at 11:51pm
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I saw that interview and with S.P Tuliyan you better be assured that he has done his full homework. Seems to know everything about any company he talks about. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: us121
Date Posted: 13/Apr/2007 at 12:01pm
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Thanks Basantji,
But one question in mind: did he not fail to smell what was to happen in sugar sector. he was very very bullish and in my opinion caught unaware. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: kanagala
Date Posted: 13/Apr/2007 at 2:33am
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[QUOTE=SANDEEP] I have got a copy of latest report on Auo Ancillaries of Motilal Oswal.
[\QUOTE=SANDEEP]
Hi Sandeep, is it possible to share this reports with me? Can you mail the report? I am keeping tab on this space. |
Posted By: xbox
Date Posted: 13/Apr/2007 at 6:36am
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S.P Tuliyan
-----------
He is insiderLal. He carries even those details also which only company official knows. Barring bias effect, data provided by him worths a dekho. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: basant
Date Posted: 13/Apr/2007 at 9:49am
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I like Tulsiyan for his details not the recommendations though. he has an uncanny habit of knowing everything about the companies he follows.He was stumped in sugar we all know how much he tries to defend his picks there. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: us121
Date Posted: 15/Apr/2007 at 7:31pm
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AmaraRAja:
here is an article on the tremedous market growth potential for inverters/ generators.
some time back i heard su-kam ceo at IIM-A and he had also mentioned about tremendous growth coming up in the market for inverter product, due to various local/ eco related adverse issues related to Generators.
he also mentioned about huge maket potential in export not only in asia pacific region but also in the developed countries liks US and that of Europe.
This being low tech items and due to close to perfect electricity supply, not many companies in the developed countries are investing in these type of products.
They have come out with the system, which is internet based and monitoring the health of power system any where in the world, where they have installations, every 60 seconds.
Best use of opportunity of worse situation of electrical power over here and our software expertise.
Also he mentioned about working on to power storage projects in some of the rural and urban areas in consultation with govt. This calls for huge numbers of batteries.
if i am not wrong, they have already diversified in battery mfg cor captive purpose. However, market may explode.
MY REASON OF PLACING THIS ARTICLE HERE IS TO LOOK FOR PICK AXE THEORY FOR BATTERY MANUFACTURERS.
source: india infoline
------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
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Posted By: basant
Date Posted: 15/Apr/2007 at 7:53pm
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ABsolutely wonderful insight. battery manufacturers would be greatly benefitted. It is a no brainer now that you have used your brains so well to dig it out for us. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: us121
Date Posted: 21/Apr/2007 at 11:09am
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[QUOTE=basant]battery manufacturers would be greatly benefitted. QUOTE]
Kunwer Sachdev, CEO: Su-kam in ET-BrandEquity p2 of 18 April:
if the invertor market in india is Rs. 2000/- crore, the batteries market is five times that.
and there is a huge scope to create a brand in the unorganised market. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: basant
Date Posted: 21/Apr/2007 at 11:28am
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Thanks US121 you really have a good insight into things. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: us121
Date Posted: 23/Apr/2007 at 9:54pm
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a report on exide from equitymaster:
OUTLOOK ARENA >> VIEWS ON NEWS >> APRIL 23, 2007 Exide: Packing quite a punch!
The company was also able to capitalize on the opportunities thrown open by industrial battery market. The Indian Railways continued to repose faith in the company’s batteries and new products are in the pipeline so that further growth is achieved in the segment.
Its ‘Lead’ once again: Lead prices, which constitute a huge chunk of the total raw material prices for the company have continued to rise, thus putting a constant pressure on the company’s margins. As evident from table below, raw material costs as a percentage of sales have jumped by a huge 540 basis points. Had it not been for the softening of dollar and savings on the other expenses front, operating margins during the quarter would have witnessed a further decline. The fact that lead price increase is a pass through has also helped matters. The company, in phases had increased prices by as much as 14.3% in order to nullify a 14.5% increase in lead prices.
The company seems to have utilized its capacity more effectively during the quarter as it has reported higher volumes without the concomitant increase in depreciation charges. This has really given a big boost to the bottomline growth of the company and has also helped it offset higher finance charges, which were presumably incurred on the back of expansion related capex. As far as the performance of the past few quarters is concerned, while sales have gone into a higher orbit during FY07, margins have come under pressure during the latter half of FY07. We do not expect the margin pressure to subside any time soon and expect the same to remain at current levels.
------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: us121
Date Posted: 03/May/2007 at 10:17pm
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Amara Raja Batteries Ltd Thursday, April 05, 2007 Amara raja Batteries Ltd has informed BSE that the Company would be publishing Audited Financial Results for the year ended March 31, 2007 and would have its Board Meeting to consider the same on or before June 30, 2007. In view of the above, the Company will not be publishing the Unaudited Financial Results for the fourth quarter ended March 31, 2007. ------------ Does it mean that we will have no clue about its q4 result till june end? any likely reason for company doing so? ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: us121
Date Posted: 23/May/2007 at 6:58pm
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As per some of the info i could gather:
this yr turn over is likely to be 700cr+,
margin is likely to be 2% lower as compared to previous yr. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: basant
Date Posted: 23/May/2007 at 7:05pm
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Is the margin affected by the lead and other raw material price rise? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: us121
Date Posted: 30/May/2007 at 10:46pm
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Though i do not know actual reason, my guess is: one, due to increase of raw material price and two, their great thrust on automobile OEM market forcing to reduce the margin due to competition.
The latest info is they are overbooked on industrial/telecom battery segment. The deliveries, which earlier used to happen in 3~4 weeks are now having lead time of 8 weeks or so.
The best part is there is no local manufacturer matching their quality as of date and going to other manufacturer is like accepting the inferior quality. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: Rinku
Date Posted: 07/Jun/2007 at 3:08am
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Posted By: manishdave
Date Posted: 20/Jun/2007 at 9:58pm
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Amara Raja Batteries launches new retail store format Powerzone will offer top quality automotive and power related products for the rural households and shops. It is a one stop shop offering a platter of products of global quality at local prices, right from automotive batteries, tractor batteries and home UPS, from the House of Amara Raja. The Company will be leveraging its expertise in lean management techniques, efficient network building and product innovation to bring in the economies for this venture. Inaugurating the store, Jay Galla said, “The consumer in the rural markets is today a poor cousin to the urban consumer. He settles for the substandard, local offerings because of the higher price points. At Amara Raja, we have technology and expertise in batteries and inverters and Powerzone is the innovative concept that brings technology at the right price for the rural consumers.” All the Powerzone stores will be connected through an information backbone to the central hub, for efficient planning, management and stocking. The Powerzone network of stores is a franchisee model offering a ready-to-roll packaged business fully supported by ARBL through investment in IT infrastructure, products and brand building, while the local business partner will bring in local infrastructure and product investment. Going ahead, Powerzone will also offer other power related products, which will be sourced from reputed international sources. Beyond the metros and large cities, the retail consumer is more acutely in need of power solutions and is a frequent buyer of automotive and power related products, whether it is to run his tractor, power his home or his shop. Frequent power cuts add to this quest for alternative power solutions. “With colourful display and world class products in a minimum area of 350 square feet, Powerzone is a concept which will bridge the urban-rural divide in product offerings and customer experience. It translates into customer comfort in 4 critical areas – One, the shopping experience, two, the price point, three, the comfort of buying a standardized product backed with the best-in-class technology and most importantly the comfort of access to reliable, after sales service network across the country,” elaborated, G Indeevar, Head, Automotive – Aftermarket, ARBL. |
Posted By: us121
Date Posted: 22/Jun/2007 at 9:27am
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Amara Raja Batteries net profit rises 65.72% in the March 2007 quarter Sales rise 75.43% to Rs 193.60 crore
Net profit of Amara Raja Batteries rose 65.72% to Rs 15.23 crore in the quarter ended March 2007 as against Rs 9.19 crore during the previous quarter ended March 2006. Sales rose 75.43% to Rs 193.60 crore in the quarter ended March 2007 as against Rs 110.36 crore during the previous quarter ended March 2006. For the full year, net profit rose 97.23% to Rs 47.04 crore in the year ended March 2007 as against Rs 23.85 crore during the previous year ended March 2006. Sales rose 64.39% to Rs 595.80 crore in the year ended March 2007 as against Rs 362.43 crore during the previous year ended March 2006. Source: capital market ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: us121
Date Posted: 22/Jun/2007 at 9:28am
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javascript:winhelp%28../PaidSec.asp?CapitalURl=/cmedit/story8-0.asp?SNo=170065&QAccess=Cap&Menuopt=010901%29 - Amara Raja Batteries' board approves stock split (Corporate News 22-Jun 16:44) Source: Capital market ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: us121
Date Posted: 22/Jun/2007 at 10:14am
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Source: Moneypore. cmp: Approx430
Amara Raja Batteries Ltd
------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
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Posted By: basant
Date Posted: 22/Jun/2007 at 11:02am
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The PBDIT and PAT increased at a rate less then the increase in sales. Does that mean that increase in inputs have not been passed on to the customers? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: us121
Date Posted: 23/Jun/2007 at 4:26pm
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i was just discussing with our procurement person who is dealing with this company. insight i got is:
1. off late they have passed on the material rise effect to the customer in atleast industrial batteries
2. None of the suppliers are commiting the price beyond 1 or 2 months of delivery
3. the raise expected in price is little over the premium of rise in LME quote for inputs. this is due to bouyancy in the market.
4. most of the bulk suppliers have started paying in advance to book the production ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: us121
Date Posted: 23/Jun/2007 at 4:32pm
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source: hindu business line
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Amara Raja net doubles; 1:5 stock split proposed
Our Bureau
Work patterns Plant for making batteries for 2-wheelers to be production-ready by Oct. Co intends to put up a plant near Haridwar. Lead needs set to go up in line with projected production increase.
 SEEING GROWTH: Mr Jayadev Galla (left), Managing Director, Amara Raja Batteries Ltd, and Mr Suresh K., Financial Controller, at a press conference in Chennai on Friday. — Bijoy Ghosh
Chennai June 22 Amara Raja Batteries, manufacturers of the Amaron brand of automotive batteries, has reported a net profit of Rs 47 crore for 2006-07, close to double of Rs 23.84 crore for the previous year. The board of directors has recommended a dividend of Rs 3.50 a share (35 per cent). The board has also recommended a proposal to split the company's shares of Rs 10 each to Rs 2 each. Amara Raja's turnover increased 67 per cent to Rs 595.80 crore (Rs 363.67 crore). In the fourth quarter of last year, the company's turnover was Rs 193.60 crore (Rs 109.96 crore). Net profit for the quarter was Rs 15.23 crore (Rs 9.19 crore). At a press conference here, the company's Managing Director, Mr Jay Galla, said that its upcoming plant for the production of batteries for 2-wheelers would be production-ready by October and the product should be in the market in December. The company expects 2W batteries sales of around Rs 20 crore this year. The company, which achieved a 92 per cent capacity utilisation of its automotive batteries plant, is expanding its capacity from 4 million now to 5.5 million by the first quarter of next year. Mr Galla said that Amara Raja intended to put up a plant near Haridwar, Uttarakhand. The company has bought some 20 acres of land there. Initially, it would send assembled batteries from its plant at Tirupati to Haridwar, where acid would be poured and the batteries charged and sold in the Northern markets. But over time, the plant would be a fully integrated one. Investment details are being worked out. Price of lead Amara Raja Batteries imports about 3,000 tonnes of lead each year. This requirement is set to go up in line with the projected production increase. The prices of the metal have been going up. From $1,400 a tonne at the end of last year, lead prices have gone up to $2,600 a tonne and are expected to rise further to $2,900, although some analysts expects the prices to slide to $1,500 levels from there. Still, Amara Raja is not much affected, Mr Galla said. In the aftermarket, the company is able to get price increases. In the OE segment, for about 80 per cent of the company's sales lead prices are underwritten by the buyer. The other 20 per cent is where the company feels the impact, but the appreciation of the Rupee has come in handy. On the overall, lead prices have had a near-neutral impact on the company's sales. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: us121
Date Posted: 25/Jun/2007 at 11:33pm
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source: the hindu
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AMARA RAJA UPBEAT OVER VODAFONE ENTRY The entry of Vodafone into the Indian market through the acquisition route has provided ‘beyond the expectation’ opportunity for battery makers like Amara Raja Batteries. The company also announced its plans to sub-divide the face value of the stock from Rs. 10 each to Rs. 2 each fully paid-up. The objective was to improve liquidity, said Mr. Galla. The Managing Director expressed concern over the rise in lead prices globally. It had shot up from $1,400-1,500 to $2,600 a tonne now. It was expected to rise further to $2,900 a tonne. This had offset the gain the company had got from the rupee appreciation, he said. In this context, Mr. Galla said Amara Raja would go in for hedging fixed price contracts. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: manishdave
Date Posted: 25/Jun/2007 at 12:05pm
US121,
Thanks for update.
 I expect the lead price to stabilize and mostly even retreat in next 3-4 months. Reason: A new mine opeing will bring additional supply on 82,000 tons/year in mkt from 2008. Mine should start in August. Another big producer which is closed down because of posioning will go for reivew in august and may get permission for shipping. That will bring enough supply in mkt. But Amararaja will have to pass on benifit as well.
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Posted By: us121
Date Posted: 26/Jun/2007 at 11:09pm
------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: kulman
Date Posted: 10/Jul/2007 at 10:32pm
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Competition.....
Tata AutoComp GY Batteries Ltd (TGYBL) has decided to put in close to Rs 120 crore in its existing Pune plant to create 5.5 million pieces a year capacity for primarily four and two-wheeler batteries.
TGYBL, an equal joint venture between Tata AutoComp Systems Ltd and GS Yuasa International of Japan, has already put in Rs 50 crore for four-wheeler batteries in its 15-acre Pune plant. The capacity for four-wheeler batteries would be ramped up from a mere 5 lakh units a year to 2 million within the next three years at an additional investment of Rs 50 crore while another Rs 70 crore would be put into the plant for a two-wheeler battery line, chief executive officer Yogesh Dhawan said during the launch of Tata Green range of batteries in Kolkata. Complete news: http://www.financialexpress.com/fe_full_story.php?content_id=169640 - here on FE------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: us121
Date Posted: 15/Jul/2007 at 10:06pm
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One more competitor interview.. Source: india infoline -------------
------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
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Posted By: vishal.sahay
Date Posted: 15/Jul/2007 at 10:46pm
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Exide Insutries holds a lot of promise. This company is not only leader in battey space and it holds a lot of inherent promise as it holds 49% stake in ING Vysa Life Insurance. Though the company does not have strong expertise in insurance business but it has indicated that it is going to remain in this business for long term and is willing to put in more money so as to maintain its stake and business growth. ------------- Vishal |
Posted By: Vivek Sukhani
Date Posted: 15/Jul/2007 at 10:55pm
| exide's reach is its biggest strength....the day amara raja gets it right there, exide has to face some real competition.... from whatever little i know they are doing great in ATB and traction batteries....but whwn it comes to power solutions I beleive Amara raja, thanks to the strength it derives from johnson controls, will do well over there.... |
Posted By: us121
Date Posted: 20/Jul/2007 at 10:59pm
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source: indiaearnings.com -------------
------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
http://www.indiaearnings.com/videos/videos.php?autono=293405 - Play Video 
Standalone net sales increased to Rs 663.92 crore from Rs 441.11 crore in the corresponding quarter of the previous year.Posted By: Rinku
Date Posted: 23/Jul/2007 at 12:51pm
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Some of the below articles suggests that exide is better than amararaja batteries? |
Posted By: us121
Date Posted: 11/Aug/2007 at 2:16am
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An interesting story on AmaraRaja~ Exide in BW: http://www.businessworld.in/content/view/2250/2327/ ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: kulman
Date Posted: 11/Aug/2007 at 10:24am
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Quite informative article. Thanks Us121.
Who's the leader in Telecom segment as per your opinion? ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: us121
Date Posted: 12/Aug/2007 at 8:35pm
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undoubtedly AMARARAJA. Excellent product and support. Exide has hardly any presence but they are trying to come up. HBL has some market but quality and support is pathetic. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: kulman
Date Posted: 14/Aug/2007 at 1:21pm
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http://www.bseindia.com/qresann/news.asp?newsid=%7bF21F1B63-1EB9-41E1-A015-EA5A5E9BBA54%7d - Amara Raja Batteries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on August 14, 2007, has unanimously approved the expansion in the capacity of the industrial battery division, involving a capital expenditure of Rs 650 million.
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I can see us121 smiling! ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: us121
Date Posted: 25/Aug/2007 at 8:06am
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I can see us121 smiling! [/QUOTE]Kulmanji, Now u have encroached in our personal life knowing when we are smiling and crying!!!  Anyway it is true, when we have collected the required quantity from the market and the stock goes up, certanily we feel happy. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: kulman
Date Posted: 25/Aug/2007 at 8:31am
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Now u have encroached in our personal life knowing when we are smiling and crying!!
------------------------------------------------------------
Ha ha ha
 No Sir, I am doing a PhD on the subject of "The realtionship between the bullish newsflow, rise in share prices, its emotional impact on shareholders & their change in behaviour in day-to-day life"
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: India_Bull
Date Posted: 26/Aug/2007 at 2:29pm
Kulmanjee, Let us know the results of your PHD thesis and it should be quite interesting. If there is emotional impact on shareholders etc etc, then it is going to be very bad and we need to have lot of STOCK MARKET COUNSELLORS (Just like we have marriage counsellors !!) ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: us121
Date Posted: 27/Oct/2007 at 8:55am
 Date:28/10/2007 URL: http://www.thehindubusinessline.com/bline/iw/2007/10/28/stories/2007102850571100.htm The high growth potential in the telecom and UPS battery segments and higher replacement demand for automotives are positives for the company. Parvatha Vardhini C
Shareholders can retain their investments in Amara Raja Batteries (ARBL), a player in the industrial and automotive storage batteries business. At the current market price of Rs 159 (post-split), the stock trades at a P-E of 14 times the trailing 12 months earnings. This is a discount to Exide Industries, the market leader. The potential for high growth in the telecom and UPS battery segments and higher replacement demand for automotive batteries due to the buoyant automobile sales in the last few years are positives for the company. But firm trends in the prices of lead, the key raw material, and competition from bigger players such as Exide remain a concern. The stock has appreciated considerably in the past one year giving over 80 per cent returns. Investors with a long-term view, however, can consider exposure on weaknesses relating to the broader markets. Under the brands ‘Power Stack’ and ‘Quanta’ in the industrial segment, the company manufactures batteries for the telecom, railways and the IT and ITES industry. It provides automotive batteries branded ‘Amaron’ to Ashok Leyland, Mahindra and Mahindra, Tata Motors, Maruti and Hyundai, among others. Both segments contribute equally to revenues. ProspectsAs telecom service providers expand their networks and get into sharing infrastructure, the company will benefit from the increased demand for batteries, which support their tower and exchange infrastructure. UPS battery sales will be propelled by growth in the IT and ITES industry, which requires back-up power, and the demand from households and offices due to the continued power shortage situation. In the automotive segment, the existence of a de-risked sales mix catering to passenger cars, tractors and commercial vehicles will help the company tide over a slowdown better. Besides, the rollout of new models by the OEMs may bring the opportunity to become sole suppliers for that model ensuring a steady revenue stream. Fuelled by the rising demand, the company had embarked on capacity expansion last year. Besides, it is also setting up a greenfield plant with a capacity to manufacture one million units of two-wheeler batteries by Q3 FY-08 and five million by FY-09. In a bid to boost volumes and improve their market share in the higher margin replacement market, the company has conceptualised retail outlets called ‘Power Zones’ to be set up in rural and semi-urban areas. A network of 500 stores is to be set up in FY-08. ConcernsRaw material costs account for about two-thirds of sales and lead constitutes 70 per cent of the raw material used. India is a net importer of the metal; international lead prices have seen a huge rise since the beginning of this year. Operating margins have declined from around 18 per cent to 15.6 per cent in the latest quarter, mainly due to raw material costs which have shown over a 100 per cent increase for the same period. Part of this rise was offset by passing it on to the customers. Although the battery-makers increased prices earlier this year, the company may face resistance to future price increases as automakers themselves are faced with a slowdown and OEMs are looking at cost-cutting. Exide has announced plans to increase prices by a further 7.5 per cent this month, but Amara Raja is yet to follow suit. Exide has also announced plans to buy out a smelter to recycle used lead-acid batteries which will help them reduce input costs. While the capacity expansion for industrial batteries was completed in FY-07, the automotive and two-wheeler battery divisions are expected to start contributing to revenues by FY-09. Until then, net margins could be impacted by way of higher interest and depreciation costs. Given the slowdown in the two-wheeler segment, there are uncertainties surrounding the contributions from the company’s foray into the making of two-wheeler batteries. --------------------- i differ on this comment in last few lines: "Given the slowdown in the two-wheeler segment, there are uncertainties surrounding the contributions from the company’s foray into the making of" with crude price approaching $100 and incresed concerns for environment, trend will move more and more to battery operated two wheelers and that is where another big opportunity lies. who knows, kulmanji's bicycle factory (as he planned to hedge crude price effect) may also produce all battery operated bicycles...
------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: us121
Date Posted: 05/Nov/2007 at 9:58pm
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If RCom is allotted GSM spectrum (which now as i undersgtand is more likely), than they are going to add huge number of sites/ towers across the country for this purpose. This is going to open up a great demand for telecom battery suppliers. RCom may plan to import lots of infra material, in order to roll out the network at the best speed. However, lots of ordering will be diverted to local companies, who have capacity. Amara Raja being the leader in this segment is likely to be the most beneficiary. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: us121
Date Posted: 05/Nov/2007 at 10:42pm
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from one of the blog site (i do not know the actual source): -------------------- AMARA RAJA: King of Batteries http://multibaggers.blogspot.com/2007/11/amara-raja-king-of-batteries.html - |
Posted By: milinthakkar
Date Posted: 02/Dec/2007 at 12:30pm
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The fall in lead prices to benefit Amararaja Batteries.. An decrease in operating cot by 15-18% will make it further attractive.. ------------- Milin Thakkar |
Posted By: manishdave
Date Posted: 22/Jan/2008 at 9:17pm
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Bumper result from Amararaja for Dec 07. Sales 307 Cr.
NP 29 Cr.
EPS 5.21
It is close to all time high in this Crash.
 |
Posted By: us121
Date Posted: 25/Jan/2008 at 8:51pm
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An excellent result. All expansion plan on track. huge demand for industrial batteries at least for next four quarters. Competition is far off in terms of quality and credentials. Fundamentally strong stock from all financial perspectives. Likely to achieve great heights further. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: us121
Date Posted: 10/Feb/2008 at 4:47pm
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i recently met one of the senior official of this company. during informal discussion, i found him to be very bullish for the performance of the company. Expects 10 to 20% of expansion plan to be operational by April 08. 100% expansion will be in production by June 08 end. if all goes well expects 1600 cr+ top line next financial year. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: shivkumar
Date Posted: 13/Apr/2008 at 8:13pm
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Amararaja Batteries information snapshot What do TEDdies think of A B as a long term investment? Balance Sheet Amara Raja Batteries Ltd. : Balance Sheet
Income Statement Amara Raja Batteries Ltd. : Income Statement
Ratios
Cash flow statement
Quarterly results
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Posted By: Vivek Sukhani
Date Posted: 13/Apr/2008 at 9:26pm
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Excellent company. JC's track record for investor friendliness is excellent. They have expanded turnover year on year for 58 years running. They have increased dividend payment year on year for more than 30 years at a stretch.
stocks like AB, exide, Asahi, Castrol are in those segment of auto ancilliaries whose consumption will only increase. personally speaking, I feel this stock makes a great buy.
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Posted By: shivkumar
Date Posted: 13/Apr/2008 at 11:24pm
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Net Cash Flow Operating Activity and Net Cash Used In Investing Activity are negative. What does one make of this? |
Posted By: manishdave
Date Posted: 13/Apr/2008 at 5:47am
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Electric bikes will be good for battery makes. In battery business, collection of old batteries is important for recovery of lead. In long term Amararaja's stratagic steps for pitstops will help in raw material cost.
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Posted By: kulman
Date Posted: 13/Apr/2008 at 7:18am
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Anyone has idea about business mix of Amar Raja from Automotive & Industrial sectors? ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: shivkumar
Date Posted: 13/Apr/2008 at 11:17am
| http://rapidshare.com/files/107325666/Amara_Raja_-_Investment_Idea_230108.pdf.html - here 's the link to a report on amararaja batteries |
Posted By: shivkumar
Date Posted: 26/May/2008 at 12:41pm
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Amara Raja Batteries unveils VRLA technology for two wheelers Amara Raja Batteries entered the two wheeler battery segment with the launch of Amaron pro bike rider 2-wheeler batteries, powered by VRLA (Valve Regulated Lead Acid) technology from JCI customized by Amara Raja`s R&D for the Indian markets. Offering the most powerful performance at 30% higher cranking power than the best in the market, Amaron pro bike rider comes with the first ever 60 month warranty. Click http://www.myiris.com/rss_index.php?fileR=2008/05/26/20080526181225193 - here to read the rest.... |
Posted By: shivkumar
Date Posted: 26/May/2008 at 11:08am
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Amara Raja gears up for battery-driven car markets Amara Raja Batteries Ltd is gearing up for an era of battery-powered http://news.moneycontrol.com/mccode/news/article/news_article.php?autono=339748# - True, the market for battery-driven cars is practically non-existent in India, but that will change. Vehicle manufacturers will come up with hybrid versions and those cars will need batteries. Read report http://news.moneycontrol.com/mccode/news/article/news_article.php?autono=339748 - here. |
Posted By: shivkumar
Date Posted: 25/Jun/2008 at 12:32pm
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Amara Raja Batteries Q4 net jumps 71.93%, 1:2 bonus announced Amara Raja Batteries reported a 71.94% increase in its fourth-quarter earnings at Rs 261.84 million compared with Rs 152.29 million in the corresponding quarter, a year ago. Net sales rose 57.37% to Rs 3,046.80 million for the fourth quarter ended Mar. 31, 2008 as against Rs 1,936.04 million in the corresponding quarter, a year ago. Total income also rose 61.59% to Rs 3,181.04 million, up from Rs 1,968.63 million in the fourth quarter, a year ago. The basic EPS after extraordinary items stood at Rs 4.60 for the quarter ended March 2008.
The board of directors of company, at its meeting held on Jun. 24, 2008, has recommended issue of bonus share to the shareholders in the ratio of 1:2, i.e. one share for every two shares held subject to the approvals. The board also recommended a dividend of 35% or Rs 0.70 per share of Rs 2 each subject to the approval of the shareholders |
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Posted By: shivkumar
Date Posted: 29/Jun/2008 at 12:15pm
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http://www.keralanext.com/news/?id=134268114 - Amara Raja, Exide Industries post higher net profit The city-based Amara Raja Batteries Ltd has declared net sales of Rs.10.8 billion for 2007-08, up from Rs.5.95 billion of the previous fiscal. The company's net profit was around Rs.943 million for the period under review compared to Rs.470.44 million in 2006-07. Another leading battery manufacturer, Exide Industries Ltd, posted net sales of Rs.28.44 billion for fiscal 2008 against Rs.18.7 billion of the previous fiscal. Exide's net profit for the period under review was Rs.2.50 billion, up from Rs.1.55 billion in the previous year. The company has attributed 50 percent of the topline growth to the price hike (of lead). While it is safer to invest in sector leaders (Exide, in this case) during a downturn, the Number Two seems to be trying harder and succeeding. Moreover Amararaja's valuations are lower than that of Exide. While Exide is available at a P/E of 17, Amararaja is available at a P/E of 9 though the former has investments in ING Vysya insurance company. My question is: why is the market giving such high valuations to Exide when the Number Two is clearly well managed and hungry to grow? |
Posted By: basant
Date Posted: 29/Jun/2008 at 12:24pm
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what is the roe and roce also what is the average growth rate for the two companies? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: vijaygawde
Date Posted: 29/Jun/2008 at 12:36pm
One of the reasons could be Exide's investment in its subsidiaries: - 50% shareholding of ING Vysya Life Insurance - 100% subsidiary http://www.alibaba.com/member/caldyne.html - |
Posted By: shivkumar
Date Posted: 29/Jun/2008 at 12:46pm
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Angel Broking's views on Exide: "It is a fundamentally sound company, with Operating Margins of around 15% and has been consistently clocking RoE and RoCE of above 20% over the last three years." Amararaja Batteries OPM as on December 07 quarter is 16.69 % ROCE 19.75 per cent |
Posted By: balloon
Date Posted: 14/Aug/2008 at 4:03pm
| The company posed poor first quarter numbers. and if one were to look at its annual report...its even worse. The company is running a big risk of things going awry for it.....on the working capital / funds mgmt front. hope they ride the tide well..... |
Posted By: praveen
Date Posted: 09/Jan/2009 at 6:24pm
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Just did the initial study. Looks a reasonable bet to make.
CMP around BV. Innovative company fighting with incumbant market leader Exide industries. Have already made a name for itself. JV with Johnson controls provides a lot of comfort in these time of crisis.
Only concern is amount of debt on the books, effect of which is yet to felt. I think current quater would show the impact of slowdown as well as higher funding cost.
I hope management pays down debt with all the cash generated by the business. If that happens company would create a lot of value by paying down that debt.
------------- The quest for knowledge is a never ending Journey |
Posted By: praveen
Date Posted: 20/Mar/2009 at 1:28pm
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Did some digging on the company. 2 Concerns.
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1. In 2001 companies stock was manipulated by stock brokers. Couple of them were penalized by SEBI. It gave a clean chit to the promoters. To be fair to them they did not sell a single share during the run-up. Can anyone shed some light on the management.
2. There is a case pending between Amara raja and IFCI regarding issue of some equity shares against a loan which it took in 1990s. Company has repaid the loan but IFCI believes it is entitled to some equity. Can someone shed some more light on this issue.
------------- The quest for knowledge is a never ending Journey |
Posted By: valuepicks
Date Posted: 24/Mar/2009 at 3:14pm
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Even I am curious on this company. From the financials available at moneycontrol, it looks like Amararaja Batteries has been growing at a faster rate than Exide. Amararaja - ranging 50-80%, Exide - 35 - 55%.
While Exide is available at a higher PE, Amararaja looks very attractive - both from PE as well as EPS. Amararaja PE - 3.73 vs. 11.43 for exide. Amararaja EPS - 9.2 vs. 3.49 for Exide.
I understand that Exide has a face value of 1 and Amararaja - 2. OPMs are more or less the same - about 17% - for both the companies.
As someone here raised a concern around Amararaja's high debt, i noticed that they had around 300+ cr on debt. This is almost equal to their reserves. Exide is comparatively comfortably placed on debt. This is as per the last year's balance sheets. But usually a debt-equity ratio below 1 would not be an alarming situation, to what I understand.
Considering the above facts, I am tempted to add Amararaja to my portfolio.
Can someone please let me know if the above fact finding is accurate and would advise on how Amararaja scores over Exide over management quality or other qualitative aspects that I might not have considered?
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Posted By: shivkumar
Date Posted: 24/Mar/2009 at 4:50pm
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Amararaja Batteries has been ramping up capacities and hence the higher debt. The company has entered into the battery segment for mobile phone towers and electric bikes. On the other hand Exide's valuations are higher because of its stake in the ING Vysia Insurance company. Personally, I am bullish on amararaja batteries because of its excellent play in retailing batteries. It has been ramping up battery outlets under the name powerzone across southern India and sri lanka. |
Posted By: praveen
Date Posted: 24/Mar/2009 at 5:01pm
Question is do the kind of batteries amara raja sells fall under B2C segment. Does buying batteries require so much individual involment that it requires a retail outlet ------------- The quest for knowledge is a never ending Journey |
Posted By: basant
Date Posted: 24/Mar/2009 at 5:31pm
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Why not Exide? Good RoE, smart smnagement leaders in the segment does anyone have an idea which battery Nano uses?
But Exide has a worthless invetsment of 49% in an insurance company and that is bad! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: manishdave
Date Posted: 24/Mar/2009 at 5:33pm
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Amararaja management is good. Technology is also good.
e-bikes is external factor and is going to change the game the way we travel in India. I was waiting for an e-bike that travels at 50km/hr. I checked with an unlisted company and they are coming out with one. IMO 50/hr bike is game changer. And fun part is e-bikes need new batteries faster than car or regular bikes. Think abt e-bike population after 5 years. And batteries that they need every 1.5 years. Math is mind boggling. Lets see how successful Amararaja is in e-bike batteries.
For comparison china sold 20 million e-bikes/year in 2006.
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Posted By: shivkumar
Date Posted: 24/Mar/2009 at 5:34pm
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nano uses exide. company has had to slash its costs sharply for nano. could affect margins. on the other hand amararaja has a deal with maruti. but when auto companies force ancillary suppliers to cut costs even amararaja will get hit. But the positive side is Amararaja is concentrating heavily on the replacement market. hence the thrust on customer interface. |
Posted By: basant
Date Posted: 24/Mar/2009 at 5:44pm
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Ancilliaries always get their arm twisted.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: praveen
Date Posted: 24/Mar/2009 at 6:05pm
Its one of the most inefficient companies according to a friend who went there for summers couple of yrs ago. They generate that high ROE% from their market penetration. Its a matter of time when that moat begins to loose its shine ------------- The quest for knowledge is a never ending Journey |
Posted By: valuepicks
Date Posted: 26/Mar/2009 at 1:29pm
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A few days ago, someone dropped a Amararaja flyer at my home. It basically had some information on retail products. I felt it was a good move to try and penetrate where Exide currently scores better.
Amararaja, which is a 20+ yrs company seems to be challenging the leader, which was in this business for over 60 yrs.
Nice to see inputs from other members on how Amararaja is slowly making in roads.
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Posted By: shivkumar
Date Posted: 26/Mar/2009 at 4:14pm
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they have certainly become aggressive. the company is aggressively targetting the unorganized battery sector. However during an economic downturn, people will turn more and more to the unorganized sector to trim costs even the quality of the end product is much poorer. Both Exide and Amararaja have taken to buying used batteries in a bid to choke raw material supply to the hole-in-the-wall operators. |
Posted By: NagarajB
Date Posted: 30/Jul/2009 at 10:05pm
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Where is amararaja headed? It gained 45 % over last couple of weeks? ------------- Regards, Nagaraj |
Posted By: valuepicks
Date Posted: 31/Jul/2009 at 4:38pm
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NagarajB,
This actually turned out to be a 4 bagger since March. Don't know where it is headed. But I believe it is good to hold for longer term. Automobile replacement market will drive some of its growth. btw, batteries are being used to power cell towers, power stations etc., So, this story is not just auto ancillary story.
Shivkumarji, thanks for your inputs. I am fortunate to have made a small investment in Amararaja.
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Posted By: shivkumar
Date Posted: 31/Jul/2009 at 4:50pm
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this story is intact. however right now, the stock is looking over valued. will add on declines though. |
Posted By: manishdave
Date Posted: 08/Sep/2009 at 5:40pm
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Chinese lead smelters are spreading lead poisoning and many smelters are forced to closed down by Govt. China is the largest lead producer. Lead prices have spiked since then and unlikely to decline anytime soon. This poisoning problem takes time to resolve.
In long term it doesn't matter much but in next couple of Qs their result will be better due to additional inventory profit. Their volume growth should be 20+.
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Posted By: us121
Date Posted: 19/Sep/2009 at 11:49pm
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in telecom amara raja is still a numero uno in quality and support.
it is prefered over exide even though exide has been trying to enter the segment for so many years, may be since last 7 years. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: neerajlulla
Date Posted: 20/Sep/2009 at 10:49pm
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METAL PRICES ARE MOVING TO HIGHER ZONE HOW CAN THIS COMPANY MAKE HIGHER MARGIN? ------------- buy and forget for long term |
Posted By: valuepicks
Date Posted: 24/Sep/2009 at 6:57pm
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Just a related topic...
Many analysts believe electric cars will begin http://money.cnn.com/2009/04/14/technology/keegan_battery.fortune/index.htm?postversion=2009041516 - replacing internal combustion engines, refueling with nuclear or renewable-generated electricity as the world becomes more concerned with global warming.
As the battery is the most expensive component in an electric car, the thinking goes that whoever controls the battery market may ultimately control the auto industry. http://money.cnn.com/2009/09/24/news/companies/a123_ipo/index.htm?postversion=2009092406 - http://money.cnn.com/2009/09/24/news/companies/a123_ipo/index.htm?postversion=2009092406
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Posted By: somu0915
Date Posted: 07/Oct/2009 at 12:53pm
| Thanks for that article |
Posted By: somu0915
Date Posted: 07/Oct/2009 at 1:43am
| Is there any company in india which produces electric car batteries? |