Amara Raja Energy and Mobility: What next after the huge rally?
The company’s partnership with Gotion High-Tech Co offers no immediate to medium-term benefit.
Substantial investments will be required to establish an EV battery factory, and this could impact the company's return ratio.
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
Highlights
- Partnership with Gotion High-Tech Co Ltd aimed at getting new technology for EV battery manufacturing
- Trades at elevated levels, seize the opportunity to lock in gains
The stock price of Amara Raja Energy and Mobility (AREM; CMP: Rs 1,663.15; M Cap: Rs 30,440 crore, Rating: Underweight) surged more than 20 percent in the last four trading days, following the announcement of a partnership with GIB EnergyX Slovakia, a subsidiary of Chinese battery manufacturer Gotion High-Tech Co Ltd, to
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