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Entry Price

876.00

Target

800.00

Recommend Date

26-02-2021

Return

8.68 %

Date : 26-02-2021

Amara Raja Batteries (ARBL) reported steady Q3FY21 results. Net sales were up 12.1% YoY to | 1,960 crore. According to management commentary, growth was achieved on the back of broad-based strength across automotive channels, telecom & commercial UPS segments. Margins were at 15.6% (down 195 bps QoQ) amid 82 bps gross margin contraction and increase in other expenses on a percentage of sales basis. PAT grew 17.5% YoY to | 193 crore, partly aided by higher other income (| 35 crore vs. | 13 crore in Q3FY20). ARBL declared interim dividend of | 5/share for FY21E and announced | 500 crore capex towards – (1) | 220 crore for 50 MW solar power plant and (2) | 280 crore for greenfield lead recycling unit.