Views on Amara Raja Batteries Ltd 3QFY2017 Results: Angel Broking

Views of Mr. Shrikant Akolkar (Research Analyst- Auto & Auto Ancillary, Angel Broking) on Amara Raja Batteries Ltd 3QFY2017 Results:

"Amara Raja Batteries Ltd (ARBL) reported 9.6% growth in net sales to INR 1,328 cr and 18% decline in net profit to INR 112 cr. Company reported steep decline in gross margins as lead prices moved sharply in December quarter. The decline in PAT indicates the impact of demonetisation. While 2W battery segment (OE and replacement) were impacted, 4W replacement segment continued to grow. While near term challenge in terms of lead prices remain, we believe that fall in the stock price over last three months reflects it adequately. Company continues to maintain healthy market share and we expect the same to continue in near term. We retain our BUY rating on the stock."

Shares of AMARA RAJA BATTERIES LTD. was last trading in BSE at Rs.886.45 as compared to the previous close of Rs. 861.2. The total number of shares traded during the day was 117643 in over 1438 trades.

The stock hit an intraday high of Rs. 893.9 and intraday low of 863. The net turnover during the day was Rs. 102611701.

Source : Equity Bulls

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