Amara Raja has 26% share of auto battery business and 60% share of telecom and industrial battery business. Since batteries are replaced every 3 years to 5 years.and base of autos is growing at 30% pa ..replacement demand is huge.
Stock now trades at 7.5X FY 2011 earnings..and can double in 6 months.
Company expanding capacity by nearly 3 times using internal accruals. So the stock can give 4 to 5 times return over 3 years.
100% correct...the stock price of market leader EXIDE is very high in comparison with Amararaja. Also entered into soft drink segment (like maaza) which is resonably secured a good entry in southern markets.
This is a multibagger in 3 months time and sure a Bonus candidate (1:1).
| NIFTY 
