Motilal Oswal recommended Neutral rating on Amara Raja with a target price of Rs 739 in its research report dated August 08, 2020.
Motilal Oswal 's research report on Amara Raja
AMRJ’s 1QFY21 performance was supported by a better mix (lower OEM sales) and lower lead prices. While aftermarket recovery was good, recently there has been inflation in lead prices (14.6% increase in spot INR prices v/s 1QFY21 average).
Outlook
We have upgraded our FY21/FY22E EPS estimates by 3.5% each to factor in the faster-than-expected replacement recovery and lower depreciation. Maintain Neutral with TP of INR739 (18x Sep’22E EPS).
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