Sector Update - Batteries - Channel checks reiterate our positive stance - Emkay

- Channel checks highlight that loss in EXID's market share was more a consequence of capacity constraints than any structural issues in business model

- AMRJ- the only formidable competition to EXID to get its act right - to only make small incremental gains in market share as it expands geographic footprints going ahead

- Structural drivers in place for both EXID/AMRJ - replacement demand set for a sharp increase; product mix set to improve significantly and threat of new players/imports not significant

- Raise TP on EXID to Rs 190, AMRJ to Rs 320 as we roll forward to FY15- Maintain BUY; prefer EXID on low expectation

Source : Equity Bulls

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