Nomura has maintained its neutral call on Amara Raja Energy & Mobility with a target price of ₹1,100 after the company reported a first-quarter margin miss. The brokerage expects margins to recover in the coming quarters, led by price hikes, the ramp-up of its tubular plant and smelter, and efficiency improvements in operations.
Nomura also flagged that utilisation risks remain low for its NMC lithium-ion cell facility, which continues to support the company’s energy storage growth plans. Additionally, the brokerage noted that a reduction in the Goods and Services Tax (GST) rate could boost revenue growth for original equipment manufacturer (OEM) customers and improve pricing power in the replacement battery segment. While near-term margin weakness weighed on quarterly results, Nomura said structural drivers in energy storage and batteries provide a stable medium-term outlook.
Disclaimer: The views and recommendations made in this article are those of Nomura. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
