Valuations factor in robust volume outlook for Amara Raja

Given cost pressures and high stock valuation, the stock could see pressure even after Monday's 6% correction

Topics
Amara Raja Batteries | Amara Raja Batteries Limited

Yash Upadhyaya  |  Mumbai 

Shares of automotive and industrial battery maker Amara Raja Batteries plunged as much as 7.6 per cent intra-day on Monday as weak performance in the December quarter (Q3), coupled with expensive stock valuation triggered a strong bout of profit booking.

Additionally, concerns over profitability and therefore earnings also took a toll on sentiment, and could keep the stock under pressure in the near-term. The company’s revenues in the October-December (Q3) period grew 12 per cent year-on-year to Rs 1,960 crore as compared to the Street’s expectation of Rs 2,010 crore or 15 ...

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First Published: Mon, February 15 2021. 15:59 IST
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