2 INDUSTRY PROFILE

Introduction
A battery is an electrochemical device in which the free energy of a chemical reaction
is converted into the electrical energy. The chemical energy contained in the active materials
is converted into electrical energy be means of electrochemical oxidation-reduction reaction.
How a Battery Works?
When you place the key in your Car's ignition and turn the ignition switch to "ON" a
signal is sent to the car's battery. Upon receiving this signal the car battery takes energy that it
has been strong in chemical form and releases it as electricity. This electric power is used to
crank the engine. The battery also releases energy to power the car's lights and other
accessories.
It is the only device, which can store electrical energy in the form of chemical energy,
and hence it is called as a storage battery.
Sealed Maintenance free (SMF) Batteries
Sealed Maintenance Free (SMF) batteries technologies are leading the battery
industry in the recent year in automobile and industrial sector around the globe.
SMF batteries come under the rechargeable battery category so is can be use a
number of time in the life of a battery. SMF batteries are more economical than nickel
cadmium batteries. These batteries are more compact than the west type batteries. It can be
use at any position; these batteries are very popular for portable power requirements and
space constraint applications.
Value Regulated Lead Acid (VRLA) Batteries
VRLA batteries are leak proof, spill-proof and explosion-restraint and having life
duration of 15-20 years. These batteries withstand the environmental conditions due to high
technology, in built in the batteries. Each cell is housed in a power coated steel tray making
1

them convenient to transport and installation. So transit damages are minimized in case of
these batteries.
Sealed Maintenance Free (SMF) batteries and Value Regulated Lead Acid (VRLA)
batteries technology are leading the battery industry in the recent years in automobile and
industrial battery sector around the globe VRLS batteries have become the preferred choice in
various applications such as uninterrupted power supply, emergency lights, security systems
and weighing scales.
Classification of Batteries
Batteries are broadly classified into two segments like,

Automotive Batteries

Industrial Batteries

Automotive Batteries
Apart from mopeds all other automobiles including scooters need storage battery. So
Automotive batteries are playing Pre-dominant role in automobile sector by influencing
customers in the automobile market. Automobile batteries can be further distinguished as the
original equipment (OE) markets as low as 5-6%. OE segment has the advantage of securing
continuous order and inquiries. This enables manufactures to streamline production facilities,
plan production schedules and attain certain level of operational efficiency.
The replacement market, on the other hand, is much larger. The replacement market is
characterized by the presence of large unorganized sector, which constitutes around 55-60%
of the total replacement market. This is possible due to low capital entry barrier. These
players have the advantage of inapplicability duties.
Industrial Batteries:
The industrial Battery segment comprises of two main categories. One comprises of
the "Stationery Segment" and the second relating to "Motive power and Electric Vehicles".
The Motive Power and the Electric Vehicle segment comprising of "Telecom, Railways and
Power Industries have registered a growth in excess of 20% and this trend is likely to
continue in the next 5 years.
The Industrial Segment is highly technological intensive and access to high quality
world-class technology is an important factor and is vital for brand reference. The total

demand for the industrial battery segment is met by indigenous production with small saves
of about 10% by imports. The demand for industrial batteries has grown slowly and steadily.
All for as industrial batteries are concerned the evolving consciousness among
Corporate and Government departments regarding environment factors will result in a shift
towards pollution-free technology. There has been a preferential shift in this segment from
the Conventional Lead batteries to sealed maintenance-free batteries (SMF). The bull of
battery industry admits that the sales are fallen but at the same time they are expecting larger
orders especially from telecom industry, which gets time they are expecting larger orders
especially from telecom industry, which gets going. Due to strong customers like telecom,
railways and electricity boards, the industrial batteries are on prosperous scale.
Recycling Batteries
Battery acid is recycled by neutralizing it into water of converting it to sodium
Sulphate for laundry detergent, glass and textile manufacturing.
Cleaning the battery cases, meeting the plastic and reforming it into uniform pellets
recycle plastic. Lead, which makes up 50% of every battery, is method, poured into slabs and
purified.
The following are the major manufacturers in battery industry in India,
Exide Industries
Standard Batteries
Amco Batteries
Tudor India
Amara Raja Batteries Ltd.
Hyderabad Batteries Ltd.
Sealed Maintenance Free (SMF) batteries and Value Regulated Lead Acid (VRLA)
technologies are leading the battery industry in the recent years in the preferred choice in
various applications such as uninterrupted power supply, emergency lights, and Security
systems and weighing scales.
Characteristics of VRLA batteries

DMF batteries are comes under the rechargeable battery category so it can used a
number of times in the life of battery. SMF batteries are more economical than nickel
cadmium batteries. These batteries are more compact than the wet type batteries. It can be
used at any position: these batteries are very popular for portable power requirements and
space constraint applications.
VRLA batteries are leak proof, spill-proof and explosion resistant and having life
duration of 15-20 years. These batteries withstand the environmental conditions due to high
technology in built in the batteries.
Each cell is housed in a power coated steel tray making them convenient to
transportation and installation, so transit damages are minimized in the case of the batteries.
Prospects of SMF / VRLA batteries in India
The following factors are influencing the demand for VRLA technology batteries.
Entry to multinational in Telecom industry.
DOT's policy decisions to upgrade the overall technology base.
constraints in the use of conventional battery in radio paging and cellular segmen Due to
project expansion in Telecom & Railways, the demands for VRLA batteries are greater than
other industrial batteries.
TELECOM
The Government's policy to increase the capacity from 10 million to 21 million lines
by 2000 increased the demand for storage batteries considerably the vale added services like
radio paging and cellular will increase the demand for storage batteries in future considerably.
RAILWAYS
In Railways, the demand estimate is based on the annual coach production this comes
to 2500 numbers by Railways itself and 1000 numbers more by various other segments,
replacement demand and annual requirement for railways electrification.

POWER SECTORS

In this sector, the estimated 90 private power projects which are expected to produce
40,000 MV with an approximate capital outlay of RS. 1,40,000crores would keep the
industry's future brighter in the coming years.
The demand of VRLA batteries is increasing due to its performance over conventional
batteries. So it is more acceptable to consumers. There appears to be a considerable potential
for electrically operated material handing equipment and related vehicle besides the
privatization of technology. It is expected to generate wider market for sophisticated batteries.
The Railways will continue to generate demand for various applications. The power sector is
also opening up a setting up pf generating stations will give a boost to demand levels. The
demand is OEM segments will grow time with the growing automation in industries.
The domestic storage battery industry is in the process of transcending the past
limitations in the technology front and the new sophisticated battery will be introduced
infuture threat from the overseas supplies do not at the current moment appeal to be
significant.
STORAGE BATTERIES
In the storage battery industry, some new units have come up. The latest development
in this field is maintenance free rechargeable storage battery. These are also known as Value
Regulated Lead Acid (VRLA) or Sealed Maintenance Free (SMF) batteries. Improvement of
technology in this industry is benefiting customers.

1.3 COMPANY PROFILE

Amara Raja Batteries Limited (ARBL) incorporated under the company's act, 1956 in
13th February 1985, and converted in to public Limited Company on 6th September 1990.
The Chairman and Managing Director of the Company is "Sri GallaRamachandra
Naidu". ARBL is the first company is India which manufactures Value Regulated Lead Acid
(VRLA) Batteries. The main objective of the company is manufacturing of good quality of
"Sealed Maintenance Free" (SMF) acid batteries. The company is setting up to Rs. 1,920
lakhs plant is in 185 acres in Karakambadi village, ReniguntaMandal. The project site is
notified under "B" category.
The company has the clear-cut policy of direct selling without any Intermediate. So
they have set up six branches and are operated by corporate operations office located in
Chenai. The company has virtual monopoly in higher A.H. (Amp Hour) rating Market its
product VRLA. It is also having the facility for industrial and automotive batteries.
Amara Raja is 5 'S' Company and its aim is to improve the work place environment
by using 5 'S' technique which is :
A Systematic and rational approach to work place organization and methodical house
keeping with a sense of purpose, consisting of the following five elements.
1.

SEIRI

2. SEITION

3. SEISO

Sort Out

Segregate necessary from unnecessary.

Discard what is not required.

Decide on frequency of sorting.

Systematic arrangement

Arranging in order

A place for everything and everything in its place

Spic and Spam

4. SEIKETSU

Cleaning the work place / Equipment

Ensuring Tip Top Condition

Standardization

- Working Methodology (Procedures and work Instructions)

5. SHITSUKE -

Self Discipline

- Forming the habit -Be disciplined

They propose to accomplish this by
- Training the people and creating awareness on 5 'S'
-

Motivating and changing the behavior patterns of the people.

Establishing standard / procedures for the implementation of each element of 5S.

They believe that effective implementation of 5 'S' techniques will result in

Consistent and better quality product.
Higher productivity
Lesser Accidents
Higher Employee Morale
COLLABORATORS
Amara Raja Batteries limited was a strategic tie up with "Johnson Controls Inc." of
U.S.A. who owns 26% stack in this company. It is the larges manufactures of lead acid
batteries in North America.
The main objective of the company is manufacturing of good quality of "sealed
Maintenance Free acid batteries (SMF). The annual growth rate of a company is 2.5% per
annum. The present turnover of the company is Rs.270 Crores. Major customers are BSNL,
VSNL, SIEMENS, and BHEL etc.
Amara Raja has always offered time tested world class Technology and Process
developed on international standards. High integrity VRLA systems like power stack and
power plus or the recently launched high performance UPS Battery - KOMBAT and
AMARON hi-life automotive batteries are the products of the collaborative battery efforts of
engineering at Johnson controls Inc. and Amara Raja.

AMARON launched in January 2000, Amara Raja has pioneered the introduction of hicube automotive batteries in India. This zero maintenance product uses the revolutionary
patended silver X technology developed by Johnson controls for high environments and
Incorporates may superior features that make it the most advantage battery on roads any
where in the world.
STRENGTHS
Proven technology from GNB and being a pioneer.
Strong and well organized customer base
Full - organized infrastructure in place
Manufacturing facilities perceived as a benchmark in India
Complete range of VRLA batteries.
Proven field performance in all user segments.
Approved vendor status in major user segments
MISSION STATEMENT OF AMARA RAJA
"To transfer our spheres of influences and to enrich the quantity of life by building
institutions that provides better access to better opportunities, goods and services. To more
people 'All the time'".
VALUES & BELIEFS
We believe in treating each other with honesty, fairness, dignity and respect and in
creating a safe, healthy and pleasant workplace.
We believe that the empowerment of our people is the foundation of our strength.
We will help each other to work in teams and hold each other accountable to fair
contribution in achieving our collective goals.
We

believe

in

innovative

and

optimum

use

of

our

continuous

improvement everything we do, as they are pre-requisites for sustained growth.

We will strive to exceed our customer's ever increasing expectations through
continuous improvement in quality, service support and time compression.
SOCIAL PROGRAMS
8

 Housing colony for employees in progress. Total plan, 500 families over five
years.
Plan to provide community hall, open auditorium, parks and play ground.
Training center for employees.
Bachelor's hostel, co-operative stores banks in operation.
Roads, water supply, streetlights, greenery educational villages.
Awards and rewards to the younger generation for improvement of education.
Modernisation of public parks for the fledged recreation ofchildren.
Public awareness programs (in Mumbai) on environmentalprotection, through
street theatre "whose Mumbai is it any way" on the occasion of Earth day April
22nd 2001
BRAND
Amara Raja's reflects the innate dynamism of the company. The emblem demonstrates
the interplay of the universal Y in Yang symbols and the philosophy of balanced forces. The
colours green and black emphasize the perfect symmetry of absorbing and releasing energies,
while the entire form in continuous motion signifies unrelenting progress. The colour green
also elucidates the role of technology as an integral part of the company's growth. Not
incidentally, it also connotes the company's resolve to preserve and nurture the environment.
CULTURE AND ENVIRONMENT
Amara Raja is putting a number of HRD initiatives to foster a spirit of
togetherness and a culture of meritocracy. Involving employees at all levels in
building organizational support plans and in evolving our vision for the
organization.
ARBL encourage initiative and growth of young talent allows the organization to
develop innovative solution and ideas.
Benchmark pollution control measures, energy conversation measures, waste
reduction schemes, massive green belt development programs, employee health
monitoring and industrial safety programs have helped ARBL to take further
environment management program.
Amara

Raja

had

now

targeted
9

to

secure

the

ISO

14001

certification.

QUALITY POLICY
ARBL's main aim is to achieve customer satisfaction through the collective
commitment of employees in design; manufacture and marketing of reliable power systems,
batteries, allied products and services.
To accomplish above, ARBL focus on
Establishing superior specifications for our products and processes.
Employing state-of-the-art technologies and robust design principles.
Striving for continuous improvements in process and product quality.
Implementing methods and techniques to monitor quality levels.
Providing prompt after sales service.
RESEARCH & DEVELOPMENT
Specific areas in which the company carries out R & D are,
New product development.
process technology up gradation.
Application engineering for new market place.
Quality improvements.
Benefits derived as a result of above R & D
Developed 4v / 200 AH batteries.
Design optimization of higher AH batteries for DOT application.
Design optimization of batteries 92v / 1285 for TL / AC - Railway application
Formation cycle optimization results in reduced duration and rejection.
Chemist curing cycle optimization.
Manufacture of automobile batten' for four - wheeler vehicles.
FUTURE PLAN OF ACTION
Commercialization of motor - cycle batteries.
Development of new range high integrity VRLA cell design.
Establishment of product for new application segment.
10

 Studies on paste additives to enhance the battery performance.

In-depth evaluation of metal surface treatment chemicals to reduce the process
cycle time.
Validating alternative grades of propylene to conserve energy and to improve
productivity.
AWARDS
Honorable Doctorate Degree 2008 by S.V.University, Tirupati and JNTU,
Hyderabad.
"The Spirit of Excellence" Awarded by academy of fine arts, Tirupati.
"Best Entrepreneur of the year 1998" by Hyderabad Management
Association.
"Industrial Economist Business Excellence Award - 1991" Awarded by the
Industrial Economist, Chennai.
"Excellence Award" by institution of Economic Studies (ES), New Delhi.
"Udyog Rattan Award" by institution of economic studies, New Delhi.
"Q1 CERTIFICATE" - 2002 by FORD Company.
AMARA RAJA GROUP OF COMOANIES
AMARA RAJA POWER SYSTEMS PRIVATE Ltd. (ARPSL), Karakambadi,
Tirupati,
MANGAL PRECISION PRODUCTS PRIVATE Ltd1. (MRPL1), Karakambadi,
Tirupati.
MANGAL

PRECISION

PRODUCTS

PRIVATE

Ltd2.

(MPPL2),

LIMITED

(AREPL),

Petamitta, Chittoor.
AMARA

RAJA

ELECTRONICS

PRIVATE

Dighavamgham, Chittoor.

GALLA

FOODS

PRIVATE

Mandal, Chittoor.

GENERAL INFORMATION
AMARA RAJA BATTERIES LIMITED
11

LIMITED

(GFPL),

Puthalapattu

Amara Raja Batteries Limited wad established in 13th, February 1985 and the
converted into public limited company in the year 1990. Amara Raja has a strategic tie-up
with Johnson Controls Inc. of the U.S.A.
Amara Raja has demonstrated its commitment to offer optimum system solution of the
highest quality and has become the largest supplier of Indian utilities such as the India
Railways, Department of Telecommunications, Electricity Board and major power generation
companies.
ARBL comprises of two major division viz., Industrial Battery Division and
Automotive Battery division. The total strength of ARBL is around 1350.
ARBL

Industrial Battery Division

Railway Coaches

Telecom

UPS

Auto Battery Division

INDUSTRIAL BATTERY DIVISION (IBD)

Amara Raja has become the benchmark in manufacturer of Industrial batteries. India is one of
the largest and fastest growth markets for industrial batteries in the world. Amara Raja is
leading in the front, with an 80% market share is stand by VRLA batteries point of view. It is
also having the facility for production plastic components.
ARBL is the first company in India to manufacture VRLA (SMF) Batteries. The
initial investment of the company has Rs.1920 lakhs, the total land is around 18 acres in
Karakambadi village, ReniguntaMandal. The project site is notified under 'B' category.
Capacity
The capacity per the year 2005 - 2006 of IBD is 3, 70,000 cells per annum.
Products

12

Amara Raja being the first entrant in this industry and has the privilege of pioneering
VRLA technology in India. Amara Raja has established itself as a reliable supplier of high
quality products to major segments like Telecom, Railways and power.
Competitors
The major competitors for Amara Raja Batteries are "Exide Industries Ltd., and GNB"

AUTOMOTIVE BATTERY DIVISION (ABD)

ARBL has inaugurated its new automotive plant at karakambadi in Tirupati on
September 24th, 2001.

This plan is a part of the most completely integrated battery

manufacturing facility in India with all critical components, including plastics sourced inhouse form existing facilities on site. In this project, Amara Raja's strategic alliance partners
Johnson Control Inc., of USA have closely worked with their Indian counterparts to put
together the latest advances in manufacturing technology and plant engineering. It is also
having the facility for producing plastic components required for automotive batteries.
Capacity
With an existing production capacity of 5 lakh units of automotive batteries, the new
Greenfield plant will now be able to produce 1 million batteries per annum. This is the first
phase in the enhancement of Amara Raja's production capacity, for this the company has
invested Rs.45 crores and the next phase, at an additional cost of Rs.25 crores, for the
production capacity will be increase to 2 million units and the company has estimated to
complete around 3 years, after that ARBL will become the single larges battery manufacturer
in Asia. The Fiscal Year 2005 - 2006's capacity of ABD is 2.2 million number per year.
Products
The products of ABD are
AMARON Hi-way
AMARON Harvest

13

 AMARON Shield
AMARON Highlife
Customers
ARBL has prestigious OEM (Original Equipment Manufacture) clients like FORD,
GENERAL

MOTORS,

DAEWOO

MOTORS,

MERCEDES

BENZ,

DAILMLER

CHRYSLER, MARUTI UDYOG Ltd., Premier Auto Ltd., and recent acquired a preference
supplier alliance with ASHOK LELYLAND, HIDUSTAN MOTORS, TELCO, MAHINDRA
& MAHINDRA and SWARAJ MAZDA.

Competitors
EXIDE, PRESTOLITE, and AMCO.
FEATURES AND BENEFITS OF THE PRODUCT
Absorbed Electrolyte

Safe, no fee acid

Sealed Construction

Spell proof and leak

Oxygen recombination cycle

No external gassing

Resealing safety value

Explosion proof and pressure regulated

Copper core terminal

Improved connection

Special hybrid alloy

Deep cycle capability

Factory charged

Ready to use

AUTOMOTIVE BATTERY DIVISION (ABD)

1.

OEM (Original Equipment Manufacturing)

Eicher India Ltd.,
Eicher Motors Ltd.,
Fiat India Limited
Ashok Leyland Limited
Honda Siel cars India Limited
Ford India Limited
Daimler Chrystler private Limited
Tata Motors Limited
14

 Hindustan Motors Limited

General Motors Private Limited
Mahindra & Mahindra
Hyundai Motor India Limited
MarutiUdyog Limited
International Tractors Limited
2.

PRIVATE LABELS
Lucas Indian Service Limited
AC Delco
MICO BOSCH

3.

EXPORTS
BOSCH, Japan
Fiamma, Italy
Pollux Distribution Inc., Philippines
Cars Traders, Dubai
NW Batterien Trading Enterprise, Singapore
Namwah Battery Co. (Pvt) Limited, Singapore
G.J.Roussakis, S.A.Greece
David Pieris Motor Company Limited, Srilanka
Silvertlec Company Limited, Taiwan
Shanghai Bolder Automobiles Components Company
M/S Dephi Diesel System. U.K.
M/S Abdullah M. Bahby Son's Co., Saudi Arabia
M/S Fatima Trading Co., Kuwait
Dugar Brothers, Nepal
Suzuki Motor Corporation, Japan
Hyundai East Africa Limited, Tanzania
M/S Ryde Batteries P/L, Australia

15

AMARA RAJA POWER SYSTEMS PRIVATE LIMITED (ARPSPL)

Amara Raja Power Systems Private Limited was incorporated in 1984 and was copromoted by Andhra Pradesh Electronic Development Corporation (APDEC).
By virtues of APEDC's equity participation ARPSL has become a deemed public
limited company as per section 43(A) of the Companies Act and ARPS(P)L has
engaged in the manufacture of uninterrupted power systems (UPS), Battery
Charges (BC) and Inverters.
The Company had a technical collaboration with "HOR" Power System Inc. of
USA. The operation of the firm is highly satisfactory and the present credit rating
of the company is "A".
Products:
The products of Amara Raja Power Systems Private Limited (ARPSPL) are
Conventional charges
Switch Mode Rectifiers (SMR)
Integrated Power Supply systems (IPS)
MANGAL PRECESSION PRODUCTS PRIVATE LIMITED 1 (MPPL1)
MPPL1 was stated in the year (1996 - 1997) to produce battery components like
"Copper Connectors, Copper Inserts, Hardware required by ARBL and ARPSL".
It is having all the "sheet metal processing machinery", it stats form "sheet cutting to
final painting with punching, bending, welding, phosphate and power coating processes".
The plant is locating at KarakambadiVillage, ReniguntaMandal, Tirupati and is
registered as an ancillary unit to ARBL and ARPSL. The operations of the company are brisk
and satisfactory.
MANGAL PRECESSION PRODUCTS PRIVATE LIMITED 2 (MPPL2)
MPPL2 was started in the year (1996 - 1997) to produce batten-components like
"copper inserts, hardware required by ARBL and ARPSL".
The unit located at PetamittaVillage, TalapulapalliMandal, Chittoor and at a distance
of 65kms from Amara Raja group of companies, Karakambadi, Tirupati.

16

In this the aim is to develop backward villages. It will also produce quality hardware
for "Automobile Manufacturer Company" up near Chennai.
AMARA RAJA ELECTRONICS (Pvt.) LIMITED
It was recently established in 2000. It produce electronic card and power distribution
broads for UPS and inverters.
Product Profile
Type of VRLA batteries manufactured in the Industrial Battery Division and their
application are as follows:
1.

POWER STACK
Applications:

Power

plants,

process

and

service

industry,

Railways,

Telecommunications, Uninterruptible Power Supply (UPS) systems, Electronic

Private Automatic Branch Exchange (EPABX), Defence (Onshore & Offshore
Wireless communication cellular Radios), Motive Power.
2.

KOMBAT (UPS BATTERY)

Applications: UPS, EPBX, Engine Starting, Emergency lighting, SPV, Portable
Power, Security Systems.

3.

BRUTE
Applications: Forklifts, Pallet trucks, Stackers, 8 Platform trucks

PRODUCTION FACILITIES
During the year under review ARBL had Prioritised and directed its objectives
towards streamlining the production process by assimilating and synchronizing capacities of
different section of plant to optimize the capacity utilization. As a part of this programme,
ARBL has proposed to increase the capacity of assembly and formation section. The reasons
for the capacity are as follows :
Expansion in as under
To meet the growing demand for the power stack batteries.
To cope - up with the peak level operations during the second half of the fiscal
year.
To improve the overall Productivity and Quality.
To balance the "line capacity" of the plant with essential utilities and facilities.

17

To achieve the above, ARBL had conducted an elaborate study on the capacities of
different sections and identified the section wide requirements. This had clearly spelt out the
need for capacity expansion in Power Stack assembly line formation section, on completion
of the expansion programme the capacity will increase from 100,000 to 160,000 batteries per
annum.

Decisions direct influence on inventory:

MKTG

PLANNING

Decisio
ns
influenc
e on
invento
ry

PURCHASE

PRODUCTION

FINANCE

18

19

PRODUCT PROFILE
S.No

PRODUCT NAME

FEATURES

APPLICATIONS

AMARON HARVEST

High performance, Totally

maintenance free, High power
charge acceptance

For Tractors

AMARON SHIELD

Ready to fit, long life low

maintenance Higher cranking
power

For Inverters

AMARON HI-LIFE
BATTERIES

Long life maintenance free,

Fully scaled and tested No
leakage/improved safety

Cars, Utility Vehicles,

Tractors, 4Wheelers,
HCVs Gensets&
LCVs

KOMBAT

High discharge, High

performance batteries which
are compact light weight
factory charge, explosion
resistant and environmental
friendly

UPS, EPBX, Engine

starting, Emergency
lighting, SPB, Portable
power, Fire alarm
security systems.

AMARA RAJA (POWER

STACK) INDUSTRIES

Light weight, study weather

proof and long lasting, High
integrity, High energy density.

Industrial applications,
Power plants, Railways,
Telecommunications,
process and service
Industry, Defence,
Motive, Power solar
photo voltaic, Electric
vehicle, Emergency
lighting.

AMARA RAJA GENPRO

Zero maintenance, No specific

gravity checks, No water
tapping up required long life,
ideal size factory charged,
therefore ready to use assured
starting and service.

For Generators

AMARON HI-WAY
BATTEIRS

Long life, Ultra low

maintenance ready to fit,
Higher cranking power.

For Trucks

QUANTA
(UNINTERRUPTED
LIFE)

--

Ups Batteries

BRUTE (THE MOTIVE

POWER HOUSE)

Zero maintenance, No life

time, No leaks, High energy
density, No sulphation of
plates, Valve Regulated, Safe
and expansion proof

Factory vehicles like

fork lifts, Pal lot trucks,
stackers and Platform
trucks.

20

PROSPECTUS OF MF - VRLA BATTERIES IN INDUSTRIAL BATTERY

INDUSTRY
The prospectus of MF - VRLA battery technology and the demand for VRLA batteries
in various segments is estimated based on the following:
Entry of multinationals in Telecom Sector.
Data policy decision to upgrade the overall technology base
Constraint in use of conventional battery in raido paging cellular segments.
Switch over Railways to Maintenance Free Value Regulated for Lead Acid
Batteries (MF-VRLA) for coach air conditioning to 100% level and the expected
gradual shift for application like TL, S & T and Railway electricians.
Technology up gradation and privatization of the power segments.
Strong

performance

towards

VRLA

in

the

office

automation

industry (UPS and EPABX applications due to user friendly and compact
features).
A Non availability of trained man - power and maintenance free characteristic of
VRLA batteries makes them automatic choice for use in rural Telecom.
PRODUTION FACILITIES, CPACITY EXPANSION AND PLASTIC PROJECT:
During the year under review, ARBL had prioritized and directed its objectives
towards streamlining the production process by assimilating and synchronizing capacities of
different sections of the plans to optimize the capacity utilization. As a part of this program,
ARBL has proposed to increase the capacity assemble and formation section. The reasons for
the capacity expansion are as under:
To meet the growing demand for the power stack batteries
To cope up with the peak level operations during the second half of the fiscal
21

year.
To improve the overall productivity and quality.
To balance the "line capacity" of the plant with essential utilities and liabilities.
To achieve the above, ARBL had conducted and elaborate study on the capacities of
different sections and identified the section wide requirements. This had clearly spelt out the
need for capacity expansion program. The plant capacity will increase from 160,000 to
275,000 batteries per annum. The estimated cost of expansion is Rs.10.80 crores.
RESEARCH & DEVELOPMENT
Specific areas in which the company carries out R & D,
New product development.
Process technology up gradation.
Application engineering for new market place.
Quality improvements.
FUTURE PLAN ACTION
Commercialisation of Motor-Cycle batteries.
Development of new range high integrity VRLS cell design.
Establishment of product for new application segment.
Studies on paste additives to enhance the battery performance.
In - depth evaluation of metal surface treatment chemicals to reduce the process
cycle time.
Validating alternative grades of propylene to conserve energy and to improve
productivity.
MAJOR USERS

22

1.

RAILWAYS:
Train lighting, air conditioning, diesel engine starting, signaling systems, control
systems, emergency breaking systems, and telecommunications.

2.

TELECOMMUNICATIONS:
Central office power plants, microwave repeaters station, RAX in public building,
emergency lighting systems at airports, fire alarm systems etc.

3.

POWER SYSTEMS:
Switch gear control systems, power hose control systems, rural street lighting etc.

4.

UPS SYSTEMS:
Back up power to computers in progress control systems in industry etc.

5.

TRACTION:
Forklift trucks, earth moving machinery, mining locomotives and road vehicles etc.

6.

PETROCHEMICALS:
Off-shore and on-shore oil exploration lighting systems, security systems etc.

7.

DEFENCE:
Defence communication, aircraft and helicopter ground starting, stationary and
mobile diesel engine starting etc.

PRODUCTION PROCESS
The process for the production of lead acid batteries consists essentially of five
operations described below:
1.

GRID CASTING:
In the process grids to hold the active materials are made. Battery grids are produced
using microprocessor casting machines with patented alloys. Different sizes of
moulds are used to get the required size of grids.

2.

PLATE PREPARATION
23

Using lead oxide production in earlier stage positive and negative paste is prepared
with addition of Sulphuric acid and water. These pastes are applied to respective grids
using industrial fasting machine
3.

CALL ASSEMBLY
Here positive and negative grids are separated by a sheet of fibre glass mat bush bars
are welded and as assembled into a jar or container to form battery cells. Then these
cells are assembled according to the customer's specifications into battery sets or
systems.

4.

FORMATION
In this process cells are filled with the electrolyte (Sulphuric acid) and then the set is
charged and discharged repeatedly, after final charging the battery comes out ready to
be used.

TESTING & INSPECTION

Testing the battery is discharged to the customer it is tested for quality specifications.

PROCESS FLOW CHART BATTERIES

I/ Pure Lead

Paste mixing by
Adding sulphuric
Acid and water

Converting Pure
Lead into Lead
Oxide

Gird Casting

Pasting Gird with

Lead Oxide Paste

Winding the pasted

Grid with Separator

Group insertion Jar

Sealing the Jar

24
Formation
Finishing

Fundamental analysis
The basic purpose of buying a security is to earn dividends and ultimately sell it at
higher price. An investor therefore is interested in obtaining estimates of future prices of the
share. These in turn will depend upon the performance of the industry to which the company
belongs and the general economic situation of the country. The multitude of factors affecting
a companys profitability can be broadly classified as:

1. Economic wide factors: these includes the factors like growth rate of the
economy, the rate of inflation, foreign exchange rates etc which affects profitability of
all companies.

2.

Industry wide factors: these include factors which are specific to industry to
which the company belongs. For instance the demand supply gap in the industry, the
emergence of substitutes, and changes in government policies towards industry affects
the company belonging to an industry.

3.

Company wide factor: these factors are specific to a firm. The firm specific
factors like plant and machinery, the brand image of the product, and ability of the
management to affect the profitability.
Economic wide factors
The following are the some of the important economic factors which influence the
investment of investor over a period of time.

Indian Economy Overview

India's economy is on the fulcrum of an ever increasing growth curve. With positive
indicators such as a stable 8-9 per cent annual growth, rising foreign exchange reserves, a
booming capital market and a rapidly expanding FDI inflows, India has emerged as the
second fastest growing major economy in the world.
The economy has been growing at an average growth rate of 8.8 per cent in the last
four fiscal years (2010-11 to 2013-14), with the 2013-14 growth rate of 9.6 per cent being the
highest in the last 18 years. Significantly, the industrial and service sectors have been
25

contributing a major part of this growth, suggesting the structural transformation underway in
the Indian economy.
For example, industrial and services sectors have logged in a 10.63 and 11.18 per cent
growth rate in 2013-14 respectively, against 8.02 per and 11.01 cent in 2012-13. Similarly,
manufacturing grew by 8.98 per cent and 12 per cent in 2012-13 and 2013-14 and transport,
storage and communication recorded a growth of 14.65 and per cent 16.64 per cent,
respectively.
Another significant feature of the growth process has been the consistently increasing
savings and investment rate. While the gross saving rate as a proportion of GDP has increased
from 23.5 per cent in 2011-12 to 34.8 per cent in 2013-14, the investment rate-reflected as the
gross capital formation as a proportion of GDP-has increased from 22.8 per cent in 2011-12
to 35.9 per cent in 2013-14.
The Current Fiscal Year
The process continues in the current fiscal year. On the back of 9.9 per cent growth in the first
half of 2013-14, GDP grew by 9.1 per cent during April-September 2013.

While overall industrial production grew by 9 per cent during April-December 2014,
importantly capital goods production rose by 20.2 per cent compared to 18.6 per cent
during same period in 2013.

Services grew by 10.5 per cent in April-September 2014, on the back of 11.6 per cent
during the corresponding period in 2013-14.

Manufacturing grew by 9.6 per cent during April-December 2014, on the back of 12.2
per cent growth during same period in 2013-14.

Core infrastructure sector continued its growth rate recording 6 per cent growth in
April-November 2014.

While exports grew by 21.76 per cent during April-December 2014, imports increased
by 25.97 per cent in the same period.

26

Money Supply (M3) has grown by a robust 22.8 per cent growth (year-on-year) as of
December 21, 2013 compared to 19.3 per cent last year.

The annual inflation rate in terms of WPI was 3.5 per cent for the week ended
December 29, 2013 as compared to 5.89 per cent a year ago.

Fiscal and revenue deficit decreased by 11 per cent and 17.2 per cent, respectively,
during April-November 2013-14 over corresponding period last year.

With such a robust growth rates, the advance estimates of the Central Statistical Organization
(CSO) expects the economy to grow by 8.7 per cent in 2013-14.
Per Capita Income
Along this significant acceleration in the growth rate of Indian economy, India's per capita
income has increased at a rapid pace, exceeding an earlier forecast made by Goldman Sachs
BRIC report which estimated India's per capita to touch US$ 800 by 2014 and US$ 1149 by
2015.
Per capita income has increased from US$ 460 in 2000-01 to almost double to US$ 797 by
the end of 2013-14. In 2013-08, India's per capita income is estimated to be over US$ 825.13,
according to the advance estimates of the Central Statistical Organisation (CSO). Further,
India's per capita income is expected to increase to US$ 2000 by 2016-17 and US$ 4000 by
2025. This growth rate will, consequently, propel India into the middle-income category.
Some Highlights
Reflecting the favorable prospect of growth rate of Indian economy, the orders received
Indian companies have increased by a whopping 68.6 per cent to US$ 32.48 billion during
January-October 2014 compared to US$ 19.26 billion in the same period last year.

India is among the five countries sharing 50 per cent of the world production (or
GDP).

FDI inflows have jumped by almost three times to US$ 15.7 billion in 2012-13 as
against US$ 5.5 billion in 2012-13.

27

The aggregate income of the top 500 companies rose by 28.4 per cent in 2013-14 to
total US$ 469.51 billion.

India's National Stock Exchange (NSE) ranks first in the stock futures and second in
index futures trade in the world.

Twenty Indian firms have made it to the list of Boston Consulting Group's 100 New
Global Challenger Giants list.

According to a study by the McKinsey Global Institute (MGI), India's consumer

market will be the world's fifth largest (from twelfth) in the world by 2025.

The number of companies incorporated has increased at an annual average of 55,000

companies in the last two years to 865,000, from 712,000 companies at the end of
2012.

Four Indians and seven Indian microfinance companies make it to the Forbes list of
Top10 world's wealthiest CEOs World's Top 50 Microfinance Institutions,
respectively.

India has the most number of private equity (PE) funds operating amongst the BRIC
markets.

Mumbai has been ranked tenth among the world's biggest centers of commerce in
terms of the financial flow volumes by a survey compiled by MasterCard Worldwide.

Another significant aspect has been the broad-based nature of the growth process. While new
economy industries like Information Technology and biotechnology have been growing
around 30 per cent, significantly old economy sectors like steel have also been major
contributors in the Indian growth process. For example, India has moved up two places to
become the fifth largest steel producer in the world.
And with its manufacturing and service sectors on a searing growth path, Lehman Brothers
Asia estimates India to grow by as much as 10 per cent every year in the next decade.
1. Growth rate of industrial sector:

28

The growth of industrial sector is an important contributor to the growth of national

income. The performance and the growth of industry is measured through an Index of
industrial product. The industrial growth rate is further disaggregated into growth rates of
different sectors like electricity basic goods consumer goods and so

Industry
Industry
YoY % change FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
Mining &
Quarrying
1
3.7
0.5
5.8
5.3
4.4
1
5
Electricity
7.3
4
3.1
3.2
5
5.2
5.2
6.5
Manufacturing
7.2
5.4
2.9
6
7.4
9.1
9.1
10.7
IIP
6.6
5.1
2.6
5.8
7
8.4
8.2
9.7

2. Inflation
Inflation prevailing in the economy has considerable impact on the performance of the
companies high rates of inflation upsets business plans, results in high input costs and hence
reduction in profit margins. On the other hand the inflation erodes purchasing power of buyer
and results in reduction in demand for goods. The demand for consumer goods will
particularly be affected adversely.
Inflation is measured by sustainable price index number. The whole sale price index
number is generally used for this purpose.
Year Inflation rate (consumer prices) Rank Percent Change Date of Information
2010

5.40 %

64

2011

3.80 %

92

-29.63 %

2012 est.

2012

4.20 %

134

10.53 %

2013 est.

2013

4.20 %

125

0.00 %

2014 est.

2014

5.30 %

139

26.19 %

2015 est.

3. Interest rates

29

2011 est.

Interest rates reflect the cost and availability of credit to the companies operating in
the economy. The interest rates and the volume as well as direction of the credit supply in the
economy is influenced by monitory policy of the reserve bank of India (RBI). If the cheap
money policy is pursued the interest rates are likely to be lower and larger volume of money
supply is expected to be there in the economy.
The lower rate of interest implies lower cost of financing the companys operations
and assures higher profitability, higher the rate of interest higher will be the costs of
manufacturing and sale, which is expected to lead lower profit.
Interest Rates
(% per annum)
Cash Reserve Ratio
Bank Rate
Reverse Repo rate
(Absorption rate)
Repo rate (Injection rate)
IDBI MT lending rate
PLR of 5 major banks
Deposit rate of 5 major
banks (maturity>1year)
Average call money rate

2-Apr
5.5
6.5

3-Apr
4.8
6.3

4-Apr
4.5
6

5-Apr
5
6

6-Apr
5
6

6-Dec
5.3
6

6
8
12.5
11.0-12.0

5
7
12.5
10.8-11.5

4.5
6
10.3
10.3-11.0

4.8
6
10.3
10.3-10.8

5.5
6.5
10.3
10.3-10.8

6
7.3
10.3
11.0-11.5

7.0-8.5
3.6-7.5

5.3-6.2
2.0-5.1

5.0-5.5
2.1-4.5

5.3-6.3
3.3-5.5

6.0-7.0
4.2-6.2

6.8-8.0
5.4-12.0

4. Foreign exchange rates

If company is major exporter or importer its performance and profitability are likely
to be affected considerably by the exchange rates of rupee against other currencies. A
depreciation of rupee against US or other currency will make Indian products more
competitive price wise. In the foreign markets, thereby stimulating export from India

5. Government budget.
The government budget provides detailed information on each of components of
government spending and revenues. The deficit is essentially the excess of government
spending on revenues. A budget deficit is often incurred for creating infrastructural facilities
in the economy tends to create inflationary pressure. Due to this there is a strong public
opinion against the governments creating of deficit without expanding the revenue.
30

6. Savings and investment.

The capital market is channel through which the savings of households are made
available to corporate for investment. Therefor the trends in saving and investment are
significant in studying their impact on capital market.
Savings and Investment
% to GDP at constant
prices
By sector
Household Savings
Private Corporate Sector
Public Sector
By types of assets
Physical Assets
Financial Assets
Gross Domestic Savings
Net Capital Inflow
Gross Domestic Investment
Errors and Omission
Gross Capital Formation

FY10

FY11

FY12

FY13

FY14

FY15

21.3
4.5
-0.9

21.2
4.1
-1.7

22
3.6
-2

23.1
4.1
-0.7

23.5
4.4
1

22
4.8
2.2

10.7
10.5
24.9
1.1
24.3
1
23.3

11
10.2
23.6
0.6
24
1.1
23.8

11.2
10.8
23.6
0.2
24.8
-2.1
22.2

12.7
10.4
26.5
-1.2
25.3
0.1
25

12
11.5
28.9
-1.6
27.2
1
27.4

11.7
10.3
29.1
1
30.1
1.6
30.2

31

Industrial analysis
BSE: 500008 | NSE: AMARAJABATEQ | ISIN: INE885A01032 | SECTOR: Auto Ancillaries

12-May | 03:51PM

810.00

Open Price
Price H/L

823.80/803.85

Prev Close

808.00

Volume

9,023

52wk H/L

946.05/377.30
Last Updated: 12 May 2015, 03:51PM

Key Fundamentals
Market Cap (Rs Cr.)

13,842

EPS

21.51

P/E Ratio

37.67

Face Value (Rs)

1.00

Latest Div. (%)

323.00

Div Yield

Book Value

79.78

P/BV

10.16

32

Quarterly Results

Peer Group
21,487.55 (-2.83%)

Bosch Ltd.

487.45 (-4.76%)

Motherson Sumi Systems Ltd.

35,402.65 (-3.58%)

MRF Ltd.

151.50 (-3.87%)

Exide Industries Ltd.

5,421.45 (-3.04%)

WABCO India Ltd.

Shareholding Pattern
52.06%

Promoters

8.92%

Mutual Funds / UTI

FII / Banks

18.13%

Others

20.88%

Announcements
Amara Raja Batt. - Shareholding Pattern For March 31, 2015
09 Apr|10:21AM

Amara Raja Batt. - Commissioning of four-wheeler automotive battery plant at Unit II

03 Apr|02:44PM

Amara Raja Batt. - FY15 results on May 28, 2015

01 Apr|02:08PM

Investor Returns
Type
Bonus
Dividend
Split

Ratio / %

XDate

1:2

14 Oct 2008

323.00

30 Jul 2014

2.00:1.00

25 Sep 2012

33

Company Analysis
Amara Raja Batteries Ltd Quarterly Results
Figures in Rs Cr.
Dec 2014
% Chg (Quarterly)
% Chg (Yearly)
Peer Range
Trend
Sales
1,059.55
-0.06
23.21
0.27
1558.65

Other Operating Income

6.90
28.73
131.54
0.00
6.90

Operating Profit
230.14
0.47
26.79
0.14
237.04

Other Income
4.70
-15.77
-35.44
0.19
4.70

EBITDA
237.04
1.11
28.48
0.14
237.04

Interest
0.06
50.00

34

100.00
0.00
0.75

Depreciation
28.80
-21.40
83.67
0.00
35.21

Tax
53.55
-0.70
14.23
0.05
53.55

Net Profit
102.34
2.03
7.71
0.02
102.34

EPS (Rs)
5.99
2.04
7.73
0.04
5.99

View Detailed Financials:Profit and LossCash FlowsBalance SheetQuarterly ResultsHalf Year ResultsCapital
Structure

Amara Raja Batteries Ltd Stock Performance

vs peers
Companies
LTP
Intraday%
1W%
1M%
1QTR%
1YR%
3YR%
5YR%
Trend D|M|Y
Amara Raja Batt
810.35
0.01
-1.39
-7.67
-5.29
102.44
442.11
852.79

35

Exide Inds.
151.50
-3.87
-6.42
-19.82
-14.86
30.83
24.69
28.83

Top Loser for the period amongst the peers

Top Gainer for the period amongst the peers

Amara Raja Batteries Ltd Financial Comparison

with peers
Management Efficiency
Amara Raja Batteries Ltd.
Peer Average
Peer Range
Trend
Return On Equity (%)
26.96
16.04
5.69
27.05

Return On Assets (%)

17.30
12.97
4.43
18.13

Return On Capital Employed (%)

20.46
32.37
14.54
61.57

Fixed Assets Turnover (x)

2.65
1.59
0.01
2.88

Profitability & Growth

Gross Profit Margin (%)
14.42
-316.43
-973.33
13.01

36

Operating Profit Margin (%)

16.30
-306.93
-948.94
15.24

Net Profit Margin (%)

10.55
18.89
8.50
38.63

Financial Strength
Liquidity
Quick Ratio (x)
1.47
2.03
0.61
3.88

Current Ratio (x)

1.96
2.54
1.65
3.88

Cash Ratio (x)

0.43
0.90
0.07
1.98

Solvency
Debt Equity Ratio (x)
0.06
0.02
0.00
0.07

Coverage Ratios
Cash Flows to Long Term Debt (x)
0.19
0.08
0.00
0.24

Amara Raja Batteries Ltd.

Peer Companies
Company

CMP

% Change

Market Cap

52 Week H/L

21,487.5
5

-2.83%

67,469

27,990.00 /
10,468.10

1 2 3 4 5 >
Bosch Ltd.

37

Company

CMP

% Change

Market Cap

52 Week H/L

487.45

-4.76%

42,989

534.65 / 256.55

35,402.6
5

-3.58%

15,015

42,474.90 /
20,000.00

151.50

-3.87%

12,878

205.20 / 115.05

5,421.45

-3.04%

10,283

6,038.70 / 2,086.10

Apollo Tyres Ltd.

169.60

-0.79%

8,633

249.80 / 155.00

Balkrishna Industries Ltd.

766.20

0.12%

7,406

856.00 / 535.55

Sundaram Clayton Ltd.

1,879.65

-1.01%

3,804

2,100.00 / 724.20

Sundram Fasteners Ltd.

173.80

-0.20%

3,652

218.00 / 73.75

Amtek India Ltd.

126.85

1.16%

3,526

138.00 / 40.60

Motherson Sumi Systems Ltd.

MRF Ltd.
Exide Industries Ltd.
WABCO India Ltd.

Price Changes of Amaraja Batteries

Date

Open

High

Low

Close

Traded Value
(Rs. Lakhs)

No. Of
Trades

Traded
Quantity

22-04-2015

830.00

838.00

827.05

832.90

54.26

932

6,517

23-04-2015

835.00

837.80

818.50

829.00

73.35

896

8,876

24-04-2015

831.00

831.00

811.00

816.60

48.60

775

5,922

28-04-2015

784.00

808.00

778.00

799.80

60.62

963

7,642

29-04-2015

810.00

810.00

792.00

798.20

44.63

586

5,602

30-04-2015

795.00

797.00

778.00

794.00

96.48

1,464

12,269

05-05-2015

805.00

838.50

800.00

824.40

131.96

2,103

16,144

07-05-2015

821.00

829.90

802.55

823.25

129.68

2,388

15,803

08-05-2015

830.00

830.00

807.65

816.20

65.59

897

8,024

38

Company Results
(Rs In Cr.)

Mar 15

Mar 14

Mar 13

Mar 12

Mar 11

3451.75

2981.08

2371.03

1764.80

1467.36

Other Income

30.42

26.87

11.51

5.44

2.80

Stock Adjustment

-29.21

-32.09

12.17

-28.32

-35.69

2101.19

1763.89

1499.34

1180.76

914.28

0.00

0.00

0.00

0.00

0.00

158.32

126.62

100.26

77.49

62.37

Excise

0.00

0.00

0.00

0.00

0.00

Admin And Selling Expenses

0.00

0.00

0.00

0.00

0.00

Research And Development Expenses

0.00

0.00

0.00

0.00

0.00

Expenses Capitalised

0.00

0.00

0.00

0.00

0.00

Other Expenses

646.03

651.45

401.59

276.61

236.91

Provisions Made

0.00

0.00

0.00

0.00

0.00

575.42

471.20

357.67

258.25

289.48

0.72

1.00

4.06

1.45

6.77

Gross Profit

605.12

497.07

365.12

262.24

285.52

Depreciation

64.57

66.09

46.47

41.71

42.95

Taxation

169.23

135.11

103.58

72.92

87.60

Net Profit / Loss

367.44

286.70

215.06

148.10

167.03

Extra Orinary Item

-3.88

-9.16

0.00

0.48

12.06

Prior Year Adjustments

0.00

0.00

0.00

0.00

0.00

Equity Capital

17.08

17.08

17.08

17.08

17.08

Sales

Raw Material
Power And Fuel
Employee Expenses

Operating Profit
Interest

39

Equity Dividend Rate

0.00

0.00

0.00

0.00

0.00

Agg. Of Non-Prom. Shares(In Lacs)

818.85

818.85

409.43

409.43

409.43

Agg. Of Non-Prom. Holding(%)

47.9400

47.9400

47.9400

47.9400

47.9400

OPM(%)

16.6700

15.8000

15.0800

14.6300

19.7200

GPM(%)

17.3700

16.5200

15.3200

14.8100

19.4200

NPM(%)

10.5500

9.5300

9.0200

8.3600

11.3600

21.51

16.78

12.59

8.67

9.78

EPS(In Rs.)

Company financial health

The financial statements of the company can be used to understand and evaluate the
financial performance and health of the company. Ratio analysis helps an investor to
determine the financial strengths and weakness of the company.
The following is the ratio analysis of the AMARAJA Company
Balance sheet of AMARAJA
Mar '10
Mar '11
Mar '12
Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Application Of Funds
Gross Block
Less: Accum. Depreciation

244.76
244.76
0
0
4,558.9
1
0
4,809.6
7
500
31.09
531.09
5,334.7
6
3,347.8
2
2,178.8
1

Mar '13

Mar '14

244.76
244.76
0
0

244.76
244.76
0
0

244.76
244.76
0
0

244.76
244.76
0
0

5,111.18
0

5,782.13
0

7,116.62
0

8,543.50
0

5,295.94
500
40.09
540.09

6,026.89
500
36.98
536.98

7,301.38
500
58.24
558.24

8,788.26
0
89.33
89.33

5,835.97

6,563.87

7,859.62

8,877.59

3,459.16

3,628.50

3,821.62

4,134.61

2,365.46

2,584.70

2,839.79

3,146.31

40

Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)

1,169.0
1
67.55
10.33
2,001.1
2
4,135.7
8
1,119.44
7,196.2
8
1,495.2
6
201.47
8,893.0
1
4,094.1
8
812.46
4,900.6
4
3,992.3
7
95.5
5,334.7
6
1,114.58
196.26

1,093.70
109.57
28.98

1,103.80
98.12
8.95

981.83
191.27
8.29

988.3
312.58
8.29

2,109.88

2,916.11

3,744.37

4,217.67

4,608.48
1,510.63

5,972.14
1,392.86

8,216.99

10,281.11

7,168.12
1,483.97
12,396.4
0

9,695.82
2,128.91
15,982.4
0

1,693.39
1,155.01
11,125.39

1,921.33
1,785.01
13,987.4
5

4,186.27
2,650.01
19,232.6
8

5,517.59
3,740.00
25,239.9
9

5,339.66
1,139.94

7,248.99
1,325.45

6,479.60

8,574.44

8,911.14
3,649.32
12,554.4
6

11,957.32
5,708.25
17,665.5
7

4,585.79
17.92

5,413.01
0

6,678.22
0

7,574.42
0

5,835.96
815.79
216.37

6,563.88
609.68
246.24

7,859.61
769.95
298.31

8,877.59
976.11
359.12

Mar '12

Mar '13

Mar '14

10,682.1
5
1,103.15
9,639.00
259.98
539.77
10,438.7
5

14,739.4
6
1,298.01
13,441.4
5
342.00
386.01
14,169.4
6

19,118.33
1,695.44
17,362.8
9
482.32
181.37
18,026.5
8

5,097.68
220.54

7,099.40
229.01

8,561.41
259.08

1,650.38
783.44
1,012.38
116.98
0.00
8,875.40

1,878.51
1,114.67
1,216.00
126.27
0.00
11,609.86

2,366.93
1,733.59
887.55
190.50
0.00
13,999.1

Profit & Loss account

Mar '10
Mar '11
Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses

7,727.7
9
728.49
6,999.3
0
69.08
-45.32
7,023.1
2

8,893.1
7
856.44
8,096.7
3
14.61
-30.63
8,020.7
1

3,160.3
8
199.96
1,510.6
4
478.10
532.98
81.56
0.00
5,957.6

3,634.6
6
196.81
1,639.5
1
598.67
888.89
193.58
0.00
7,152.1

41

Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

2
996.36
1,125.4
4
54.78
1,010.6
6
185.35
0.00
825.31
-49.01

2
853.98

1,309.37

2,223.60

2
3,545.20

868.59
60.08

1,563.35
81.41

2,565.60
58.75

4,027.52
43.33

1,481.94
218.87
0.00
1,263.13
312.60

2,512.85
245.93
0.00
2,260.92
299.86

3,984.19
244.61
0.00
3,739.58
-13.79

776.30
291.51
444.51
2,797.2
4
0.00
97.90
12.54

808.51
198.00
0.00
610.51
396.59
1,013.1
0
348.93
658.15
3,517.4
6
0.00
146.86
19.00

1,569.67
616.30
953.40

2,560.78
881.61
1,679.16

3,725.79
1,311.09
2,414.70

3,777.71
0.00
195.81
26.64

4,510.46
0.00
354.90
49.78

5,437.65
0.00
599.66
92.83

2,447.6
0
18.16
40.00
196.26

2,447.6
0
26.89
60.00
216.37

2,447.60
38.95
80.00
246.24

2,447.60
68.60
145.00
298.31

2,447.60
98.66
245.00
359.12

AMARAJA Ratios calculations

sl.no
1
2
3
4
5
6
7
8
9
10
11
12
13

ratio
Net working capital
current ratio
quick ratio
inventory turnover ratio
debt equity ratio
interest coverage ratio
gross profit margin
Net profit ratio
cost of goods sold ratio
Operating profit ratio
return on equity
return on assets
return on capital employed

formula
CA-CL
CA/CL
CA-(stock+prepaid exp)/CL
COGS/avg INV
long trm DBT/ Sh holders eq
EBIT/INTERST
Gross profit / sales
EAT/ Net sales
COGS/ net sales*100
EBIT/ Net sales
Net profit/ share holders equity
Net profit/total assets
EBIT/ Total capital

42

2014
7574.42
1.43
1.13
3.32
0.01
93.42
19
13.51
80.63
20.41
27.48
27.69
44.18

year
2013
6678.22
1.53
1.17
3.10
0.13
43.46
14.71
12.19
86.33
16.54
23.00
22.11
30.28

2012
5413.01
1.63
1.22
3.10
0.08
19.8
11.25
9.58
92.08
13.52
15.82
15.77
20.82

14
15
16
17
18
19
20
21
22
23

EPS
DPS
P/E
price to book value ratio
book value per share
dividend payout ratio
earning yield
dividend yield
total asset turnover ratio
capital turnover ratio

Net profit available eq sh/ NO

shares
Div paid to ord sh / No of shares
MPS/EPS
MPS/BPS
Net worth / no of shares
DPS/EPS*100
EPS/MPS *100
DPS/MPS*100
COGS/total asst
COGS/capital employed

98.66
24.5
22.91
6.30
359.12
24.83
4.36
1.08
1.58
1.59

68.6
14.5
32.75
7.53
298.31
21.14
3.11
0.65
1.48
1.59

38.95
8
19.70
3.12
246.24
20.54
5.08
1.10
1.35
1.47

Interpretation:
Net working capital:
NWC represents the excess of current assets over current liabilities. Companies should have
sufficient NWC in order to be able to meet the claims of the creditors and the day to day
needs of business. The greater is the amount of NWC greater is the liquidity of the firm. In
AMARAJA company the three year NWC is as follows.

Sl.n
o

Year
Ratio

Formula

2014
7574.4

2013
6678.2

2012
5413.0

1
Net working capital
CA-CL
2
2
1
The company from 2012 to 2014 has increased its NWC which shows that the company has
good liquidity to its creditors.
Current ratio:
The Current Ratio expresses the relationship between the firms current assets and its current
liabilities. The rule of thumb says that the current ratio should be at least 2 that is, the current
assets should meet current liabilities at least twice.
sl.n
o
2

Year
Ratio
current ratio

Formula
CA/CL

2014
1.43:1
43

2013
1.53:1

2012
1.63:1

Here we can see that the companys current ratio decreasing gradually.
Quick ratio:
The quick ratio, also referred to as acid test ratio, examines the ability of the business to
cover its short-term obligations from its quick assets only (i.e. it ignores stock). Clearly this
ratio will be lower than the current ratio, but the difference between the two (the gap) will
indicate the extent to which current assets consist of stock.
sl.n

year

o
Ratio
Formula
2014
2013
2012
3
Quick ratio
CA - (stock + prepaid exp)/CL 1.13:1 1.17:1 1.22:1
Here we can see that the companys quick ratio is bit constant for three years and company is
able to satisfy its creditors with this ratio.
Inventory turn over ratio:
This ratio measures the stock in relation to turnover in order to determine how often the stock
turns over in the business. It indicates the efficiency of the firm in selling its product.
sl.no
4

Ratio
inventory turnover ratio

Formula

year
2014

2013

2012

COGS/avg INV

3.32

3.10

3.10

In 2014: 12/ 3.32= 3.61 months

In 2013: 12/3.1=3.87 months
In 2012: 12/3.10= 3.95 months. Here we can see that the companys working efficiency
increased over a period of time. They are able to convert their inventory into sale in 3.61
months.
Debt equity ratio:
This ratio indicates the extent to which debt is covered by shareholders funds. It reflects the
relative position of the equity holders and the lenders and indicates the companys policy on
the mix of capital funds. The ratio reflects the relative contribution of creditors and owners of
business in its financing.
sl.n

year

o
Ratio
Formula
2014
2013
2012
5
debt equity ratio
Long trm DBT/ Sh holders eq
0.01
0.13
0.08
Here we can see that the company gradually decreased its debt combination from its finance.

44

Interest Coverage Ratio:

This ratio indicates how well the firms earning can cover the interest payments on its debt.
sl.n

year

o
Ratio
6
interest coverage ratio
Gross Profit Margin:

Formula
EBIT/INTERST

2014
93.42

2013
43.46

2012
19.8

Normally the gross profit has to rise proportionately with sales. It can also be useful to
compare the gross profit margin across similar businesses although there will often be good
reasons for any disparity.
sl.n

year

o
Ratio
Formula
2014
2013
2012
7
Gross profit margin
Gross profit / sales
19
14.71
11.25
The ratio above shows the increasing trend in the gross profit since the ratio has improved
from 11.25% in 2012 to 19.00% on 2014. This indicates that the rate in increase in cost of
goods sold are less than rate of increase in sales, hence the increased efficiency.

Net profit ratio:

sl.n
o

year
Ratio

Formula

2014
13.51

2013
12.19

2012

8
Net profit ratio
EAT/ Net sales
%
%
9.58%
a high net profit margin would ensure adequate return to the owners as well as enable a firm
to withstand adverse economic conditions when selling price is declining cost of production
is rising and demand for the product falling.

Cost of goods sold ratio:

sl.n

year

o
Ratio
Formula
2014
2013
2012
9
cost of goods sold ratio COGS/ net sales*100
80.63
86.33
92.08
This is one of the expenses ratios it is computed by expenses by net sales. The cost of goods
sold ratio shows what percentage share of sales is consumed by cost of goods sold and
conversely what proportion is available for meeting expenses such as selling and general

45

distribution expenses as well as financial expenses consisting of taxes interest and dividend
and so on.
Operating profit ratio:
This ratio reveals the profitability of sales resulting from regular business as well as buying,
selling, and manufacturing operations.
sl.n
o
10

year
Ratio
operating profit ratio

Formula
EBIT/ Net sales

2014
20.41

2013
16.54

2012
13.52

Return on Equity:
This ratio shows the profit attributable to the amount invested by the owners of the business.
ROE measures the amount of money that the company has managed to generate for its
shareholders.
sl.n
o
11

year
Ratio
return on equity

Formula
Net profit/ share holders equity

2014
27.48

2013
23.00

2012
15.82

Here we can see that the companies return on equity is increasing constantly so we can say
that the profitability to ordinary shareholders is strong and showing an upward trend.
Return on assets:
This ratio gives you an idea on the company's management effectiveness in utilizing its assets
to make a profit for its shareholders.
sl.n
o
12

year
Ratio
return on assets

Formula
Net profit/total assets

2014
27.69

2013
22.11

2012
15.77

The company ROA has increased constantly which its management efficiency in getting good
returns from its assets.

46

Return on capital employed:

sl.n
o
13

year
Ratio
return

on

employed

Formula

2014

2013

2012

EBIT/ Total capital

44.18

30.28

20.82

capital

This ratio shows how efficiently the long term funds of owners and lenders are being used.
Earning Per Share:
For an equity investor, a companys EPS is the most important indicator of its performance. If
the EPS is good, the company can pay dividends, plough back the surplus into reserves and
issue bonus shares in the future. For these reasons, the market price of any companys share is
largely influenced by its projected EPS

Sl.no

ratio

year
Formula
2014
Net profit available eq sh/ NO

2013

14
EPS
shares
98.66
68.6
We can see here the companys EPS gone three times higher from three year.

2012
38.95

Dividend per Share:

Sl.no
15

ratio
DPS

Formula
div paid to ord sh / No of shares

Year
2014
24.5

2013
14.5

2012
8

This indicates the dividend paid for each share. Shareholders would, naturally like to receive
the maximum possible dividends from a company, consistent with its profits and need for
retained earnings.
P/E Ratio:

47

P/E ratio is a useful indicator of what premium or discount investors are prepared to pay or
receive for the investment. The higher the price in relation to earnings, the higher the P/E
ratio which indicates the higher the premium an investor is prepared to pay for the share. This
occurs because the investor is extremely confident of the potential growth and earnings of the
share.
sl.n
o
16

year
Ratio
P/E

Formula
MPS/EPS

2014
22.91

2013
32.75

2012
19.70

The above ratio shows that the shares were traded at a much higher premium in 2014 than
were in 2012. In 2012 the price was 19.7 times higher than earnings while in 2014, the
price is 22.91 times higher.

Price to book value ratio:

sl.n
o
17

year
Ratio
Price to book value ratio

Formula
MPS/BPS

2014
6.30

2013
7.53

2012
3.12

It measures the relationship between the market price of an equity share with book value per
share. The P/B ratio is significant in predicting future stock return. Firms with low P/B ratio
had consistently higher returns compared to the firms with high P/B ratio.
Book value per share:
sl.n
o
18

year
Ratio
Book value per share

Formula
Net worth / no of shares

2014
359.12

2013
298.31

2012
246.24

This ratio indicates the net asset value of a companys share. A high book value indicates that
the company has strong reserves, indicating scope for bonus shares, of course subject to
necessary guidelines of the SEBI.
Dividend payout ratio:
This ratio looks at the dividend payment in relation to net income and can be calculated as
follows:

48

sl.n
o
19

year
Ratio
dividend payout ratio

Formula
DPS/EPS*100

2014
24.83

2013
21.14

2012
20.54

Earning yield:
This ratio highlights as a percentage a companys earnings vis-a-vis the current market value
of its share. For blue chip companies this ratio tends to be around 5 per cent to 6 per cent.
sl.n
o
20

Year
Ratio
earning yield

Formula
EPS/MPS *100

2014
4.36

2013
3.11

2012
5.08

Dividend yield:
The dividend yield ratio indicates the return that investors are obtaining on their investment
in the form of dividends. This yield is usually fairly low as the investors are also receiving
capital growth on their investment in the form of an increased share price.
sl.n
o
21

Year
Ratio
dividend yield

Formula
DPS/MPS*100

2014
1.08

2013
0.65

2012
1.10

Total asset turnover ratio:

sl.n

Year

o
Ratio
Formula
2014
2013
2012
22
total asset turnover ratio
COGS/total asst
1.58
1.48
1.35
Total asset turnover ratio measures the efficiency of a firm in managing and utilizing its
assets. The higher ratio indicates the more efficient management.
Capital turnover ratio:
sl.n

Year

o
Ratio
Formula
2014
2013
2012
23
capital turnover ratio
COGS/capital employed
1.59
1.59
1.47
Capital turnover ratio measures the efficiency of a firm in managing and utilizing its capital.
The higher ratio indicates the more efficient management.

49

Value anchor
Period & months

INCOME
Net Operating Income
EXPENSES
Material Consumption
Manufacturing Expenses
Personel Expenses
Selling Expenses
Administrative Expenses
Cost of Sales
Reported PBDIT
Other Recuring Income
Adjusted PBDIT
Depreciation
Adjusted PBIT
Finanical
AverageExpenses
Dividend payout ratio
Adjusted
PBT
Required
rate of rate
Tax
Charges
Expected growth rate in dividend
Adjusted
PAT
P/E Ratio
Non-recurring
Items
AVG PE ratio
Other
Non-cash
Adjustments
Weighted PE ratio
REPORTED PAT
no. of shares

CAGR

2012/09

2013/09

2014/09

20822.62

24971.74

29947.6

1.20

10155.72
2472.116
2591.409
248.2735
942.93

12313.66
3126.919
2837.178
277.4314
1098.846

14915.58
3810.834
3112.255
310.0138
1144.518

1.21
1.24
1.09
1.12
1.10

16,410.45

19,528.09

23,281.20

4,412.17

5,443.70

6,666.41

783.4328

1220.577

1901.64

5,195.60

6,664.28

8,568.11

risk free rate 288.9110

Bet
273.3171

258.5655
4,937.10

6,390.96

8,279.14
a

41.34491 25.2839.45136
4,895.69 18.6 6,351.51
1771.10 16.022392.347
3,124.65 9.81 3,959.17
-13.4609 23.74 -8.82512
16.78

Expected EPS FOR 3 YEAR

37.64339

8,241.49
8
1.1
3231.617

3,111.19

3,950.34

5,010.09

24.48

24.48

24.48

127.09

161.37

210.42

2012

2013

2014

2132.30

2713.42

3429.62

Calculation of Intrinsic value

Average Dividend payout ratio= sum of 5 years DPR/ 5
Required rate of rate= risk free rate +(beta*EMPR)
50

EMRP
1.12
0.95
1.37
9.5
1.35

5,009.88

-5.78611

Expected future price of the AMARAJA Company

Year
Value ancher

1.56

0.66
0.78

Expected growth rate in dividend= avg of retention ratio* avg of ROE

P/E RATIO= AVG DPR / (required rate of risk-exp growth rate in div)
AVG PE ratio= 5 years PE ratio/ 5
Weighted PE ratio= calculated PE ratio+AVG PE ratio/2
Value anchor = weighted PE ratio* expected market price

The

following

table

shows

the

expected

market

COMPANYCompany.
year

value anchor

2012
2325.33

2013
2451.38

2014
2584.41

The following is the company management review

51

prices

of

The following lines explain the chairmans speech of Company it tells about the
companys strategy of future expansion and development strategy.
Performance overview:
India is one of the fastest growing economies globally with GDP growing at 9.4% last
year. High capacity utilisation across various sectors is fuelling an up trend in capital
expenditure. The scale of investment in infrastructure envisaged in the 11th Five Year Plan
(2013-2012) will call for greater engagement by the private sector and international
institutions. All these are lead indicators for growth.
The conducive business environment coupled with a slew of measures taken by the Company
for improvement of operational efficiency, institutionalization of a risk management
framework and more judicious selection of projects, have yielded significant benefits. In
Financial Year 2012-2013, the Company's order inflows & sales have grown by 37% and
19% respectively.
The Company bagged its largest ever order in domestic & international markets such as
expansion & modernisation of Delhi International Airport and an offshore platform project in
Qatar. The order book as on March 31, 2013 stood at Rs. 369 Bn including Rs. 61 Bn from
international business.
The Company has achieved improvement in margins in all its business segments for the
second year. The Subsidiary and Associate Companies have also performed well. During the
year, the Company issued bonus shares in the ratio of 1:1 and recommended/paid dividend
of-Rs. 13 per share on a face value of Rs. 2 per share. The market capitalization of the
Company has increased further from Rs. 334 Bn to Rs. 456 Bn during the year and has
outperformed the Sensex.
Investing for profitable growth:
Investments are the oxygen of growth. Within the larger context of the country's
increasing investments in building a brighter future, the Company is also investing in
multiple spheres - people, technology, capacity expansion both domestically & internationally
and brand building. This is essential for sustaining the growth momentum and continuous
value creation.

52

People - Talent management:

Talent acquisition and retention is one of the key result areas for our senior managers.
On an on-going basis, the Company renews, rejuvenates and adds Human Resource
Management & Development systems, processes and practices to its repertoire and
periodically does compensation benchmarking so as to ensure a vibrant and motivated
workforce. The Company is constantly honing people management leadership skills of the
employees and is increasingly investing in training centers across India. Innovative human
resource initiatives like 'Campus to Corporate', launch of an e-learning portal - 'Any Time
Learning', buddy referrals for talent acquisition, have been launched. As a result, the
Company has been able to substantially increase its human resource.
Technology - Building on core Amaraja strength:
Given our commitment to becoming a knowledge-based premium conglomerate,
investments in technology across all businesses continue to remain at the forefront of the
Company's business strategy. The Company has set up Amaraja design centers at Mumbai,
Baroda, Chennai, Bangalore, and Delhi as well as in the Middle East. In line with our
objective of emerging as a player with end-to-end capabilities in the power sector, the
Company has signed an agreement with Mitsubishi Heavy Industries Limited, Japan for super
critical boiler technology and is close to achieving a similar tie-up in the field of turbines.
International Business - Strengthening presence beyond India:
The Company continues to forge alliances and to invest in international business for
enhancing capabilities and achieving its vision of becoming an Indian multinational with
focus in the Middle East and China. Joint ventures have been set up in Kuwait and Saudi
Arabia for electromechanical construction in oil & gas, power and infrastructure sectors. The
Modular Fabrication yard being set up at Sohar, Oman will strengthen the Company's
presence in the Gulf region. The Company is receiving encouraging response from clients for
project execution and Design & Amaraja services. The Company has set up manufacturing
facilities in China for high- end switchgear & rubber processing machinery and a factory is
also being built for industrial valves. These initiatives will accelerate the Company's thrust
towards its `Lakshya' target of achieving 25% revenues from international business.

53

Capacity Expansion:
The Company is expanding capacity internationally and within India. Substantial
capacity augmentation at Hazira will help us address the growing demand in oil & gas
industry. The Electrical & Electronics division is expanding its capacity at Mysore,
Ahmednagar and Mahape to take care of rapid growth in the sector. The Company crossed a
major milestone with the inauguration of the first two units at its 300-acre campus in
Coimbatore. The facilities for the manufacture of industrial valves and switchboards are
already accomplished. The campus will progressively see the establishment of manufacturing
facilities for advanced tooling and high precision components in aerospace, nuclear power,
defence sectors etc. The Company is building a state of the art Heavy Lift-cum-Pipelay vessel
in partnership with SapuraCrest Petroleum Berhad, Malaysia that will give offshore
installation capability and achieve significant competitiveness. All the divisions of the
Company have planned increased investments in acquisition and installation of new
equipment and manufacturing facilities.

Looking Ahead:
As we move on, the Company is well positioned to exploit the opportunities that will
emerge from hydrocarbon, infrastructure, power, minerals & metals and other industrial
sectors.
The Public Private Partnership model is going to be the way forward for infrastructure
projects in the country. Infrastructure Development Projects Limited has already consolidated
its position with some completed projects and several under implementation across various
sectors. With its capabilities augmented through the recent tie-up for manufacture of super
critical boilers and the proposed collaboration for turbines, the Company will be in a position
to set up complete power projects. Infrastructure Finance Company Limited has initiated
funding in the infrastructure segment.
The Company has commenced building ships at its Hazira Works. We are also scouting for a
suitable site in India to set up a world-class facility for shipbuilding and repair, comparable to
the best worldwide. The defence, nuclear power and aerospace sectors show potential and
promise. The Raksha Udyog Ratna (RUR) status, when granted to the Company, will
facilitate increased business in Defence sector. Leveraging its proven capabilities in

54

construction and electrification for the railways, the Company envisages expanding its
presence in this sector. Given the healthy order book position and the opportunities available,
the Company believes that it will be able to achieve sustained growth.
I am happy to share that the Company was ranked number 1 in two critical attributes 'Quality' and 'Reputation' over a host of other corporates, in The Wall Street Journal Asia's
nationwide survey of Indian companies.
To conclude, I wish to place on record my appreciation for the outstanding commitment and
smart work of all our employees. I am also grateful for the continuing support of my
colleagues, our customers, business associates, shareholders and members of the Board. It is
this collective effort and support of each member of Group's extended family that instills
confidence in our ability for building on the profitable growth momentum into the future.

Finding and suggestion:

1. The following table shows the expected market of the AMARAJA stock for the
period of 3 years i.e 2012 to 2014
EXPECTED MARKET PRICE OF AMARAJA
year
particulars
2012
2013
2170.8
2756.3
FUNDAMENTAL ANALISIS

TECHNICAL ANALYSIS
current market price(31-09-08)

2500

2014
3491.62

3750

2,121.35

55

Analysis:
At present the company share price is very attractive and fundamentally undervalued
Because the intrinsic value of the share is 2170.85 and current market price is 2121.35
So one can have buy view on this stock from long term point of view.

Suggestion:

Buy for long term point of view.

2. The following table shows the expected market of the COMPANY stock for the period
of

3 years i.e 2012 to 2014

EXPECTED MARKET PRICE OF L&T

year
Particulars
2012
2325.3

2013
2451.3

2014

FUNDAMENTAL ANALISIS

2584.41

TECHNICAL ANALYSIS
Current market price

4450

5800

3,024.80

56

Analysis:
Above table shows the company script is mainly technical driven there is less scope for
fundamental analysis. Companys intrinsic value is Rs. 2325.33 but the current market price
is Rs. 3024.8. By this we can say that the company is overvalued according to fundamental
analysis.
But when we analyze by technically the stock is having good support and resistance so we
can say that the stock moves upto 4450 in short run and in long term the stock is predicted to
go around 5800.
Suggestion: If investor at present holding this stock should wait for some time to get good
return in short term the stock may go for Rs. 4450 and in the long run the stock may go to
Rs. 5800.

Suggestion: Hold for time being and sell when stock breaks its previous support.

57