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Amara Raja Batteries Ltd              Buy   technical
CMP: ` 955.85 (As on 29th Apr, 2016)
Target Price : ` 995-1040                   pick
Buy : > ` 960
Stop-Loss: ` 919                           Amara Raja Batteries Ltd, the flagship company of
                                           Amara Raja group is one of the leading manufacturers
             Amara Raja Batteries          of acid storage batteries in India. It operates in two
                                           segments - industrial battery division and automotive
                                           battery division. In India, Amara Raja is the preferred
                                           supplier to major telecom service providers, telecom
                                           equipment manufacturers, UPS sector, Indian
                                           railways and to power, oil & gas sector. Amara Raja
                                           is a leading manufacturer of automotive batteries
                                           under the brands - Amaron and Powerzone, which
                                           are distributed through large pan India sales & service
                                           retail network. The company supplies automotive
                                           batteries under OE relationships to Ashok Leyland,
                                           Ford India, Honda, Hyundai, Mahindra & Mahindra,
                                           Maruti Suzuki, and Tata Motors. Its industrial clientele
                                           includes big names like BSNL, MTNL, Lucent, Alcatel,
                                           Siemens, Nokia, Ericsson, Alstom, and Crompton
                                           Greaves. The company’s industrial and automotive
                                           batteries are exported to Asia Pacific, Africa and
                                           Middle East.

                                           Technical Outlook:

                                           On the daily chart, the stock is showing an
                                           accumulation pattern. Further the momentum
                                           indicators are gaining momentum. This suggests
                                           upside in this counter.

                                           Hence we recommend buying the stock above Rs 960
                                           with a stop loss of Rs 919 for a target of Rs 995 - 1040

                                                                           5 ARIHANT CAPITAL ¡ MAY 2016
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