In-line results; scouting for a partner for lithium ion foray

31 May 2024
5 Min read 
  • Amara Raja reported in-line 4QFY24 results with EBITDA margin up 10bp YoY at 14.6%.
  •  The company is scouting for a partner for lithium-ion foray and plans a capex guidance of INR15b for FY25-26 each.
  •  Financials & Valuations show a growth in sales, EBITDA, and adjusted PAT.
  •  The company's shareholding pattern includes Promoter, DII, FII, and Others.
  •  The management expects industrial segment revenue to grow 6-7% YoY in FY25 and has commenced a lithium-ion project.
  •  The company's foray into lithium-ion will have its own challenges and the EV transition remains a real risk for LAB in the long run.
  •  Valuations are fair, and the company maintains a Neutral rating with a revised TP of INR1,090.
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