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Amara Raja Batteries Ltd Buy technical
CMP: ` 955.85 (As on 29th Apr, 2016)
Target Price : ` 995-1040 pick
Buy : > ` 960
Stop-Loss: ` 919 Amara Raja Batteries Ltd, the flagship company of
Amara Raja group is one of the leading manufacturers
Amara Raja Batteries of acid storage batteries in India. It operates in two
segments - industrial battery division and automotive
battery division. In India, Amara Raja is the preferred
supplier to major telecom service providers, telecom
equipment manufacturers, UPS sector, Indian
railways and to power, oil & gas sector. Amara Raja
is a leading manufacturer of automotive batteries
under the brands - Amaron and Powerzone, which
are distributed through large pan India sales & service
retail network. The company supplies automotive
batteries under OE relationships to Ashok Leyland,
Ford India, Honda, Hyundai, Mahindra & Mahindra,
Maruti Suzuki, and Tata Motors. Its industrial clientele
includes big names like BSNL, MTNL, Lucent, Alcatel,
Siemens, Nokia, Ericsson, Alstom, and Crompton
Greaves. The company’s industrial and automotive
batteries are exported to Asia Pacific, Africa and
Middle East.
Technical Outlook:
On the daily chart, the stock is showing an
accumulation pattern. Further the momentum
indicators are gaining momentum. This suggests
upside in this counter.
Hence we recommend buying the stock above Rs 960
with a stop loss of Rs 919 for a target of Rs 995 - 1040
levels.
5 ARIHANT CAPITAL ¡ MAY 2016
