Sell Amara Raja Batteries - Q4FY13 Result Update - Kotak

Weak quarter, revenue growth slowdown likely to follow. Amara Raja reported a weaker-than-expected profit despite a strong growth in revenues due to deterioration in gross margin and higher depreciation expenses. The company is doubling its automotive capacity which will put pressure on pricing, in our view, keeping EBITDA margin in check.

We maintain our SELL rating on the stock due to muted earnings growth outlook over the next two years.

Source : Equity Bulls

Keywords