Dec 20: Amara Raja Batteries Ltd (BSE: 500008 NSE: AMARARAJABAT) has commissioned its two-wheeler battery plant in Chittoor, Andhra Pradesh with a capacity to produce 5 mn units in the first phase.
The company plans to invest Rs 700 cr taking the ultimate capacity to 17 mn units. The total capacity would then rise to 29 mn units. The company has pioneered the use of advanced punched grid making technology in the new facility. The new plant was inaugurated by George R Oliver, Chairman and CEO of Johnson Controls, the JV partner of ARBL.
ARBL shares rose above 4% in intra-day trade to hit Rs 845.50 as against previous close of Rs 807.20.
It is trading at a PE of 32.64 indicating a moderate valuation by market. It has crossed analysts expectations of attaining 825 levels. In September quarter, net profit fell 6.68% to Rs 127.22 cr on an annualised basis while sales rose 6/12% to Rs 1427.50 cr. In H1, 2017-18, net profits fell 15% to Rs 227.07 cr while sales rose 9.80% to Rs 2950.86 cr.
On technical charts, RSI of 68 is bullish and MACD line has witnessed a bullish crossover indicating a buy with a target of Rs 875, a leading analyst said.