Does anyone have the pdf copy of the Feb concall transcript. Not able to get it from screener.
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New ad
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blob:https://www.amararajaeandm.com/cb52f8a4-4f60-41ec-8719-f868e2341c39
https://www.amararajaeandm.com/Investors/statutory-filings-with-stock-exchange
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Pardon me for bringing out the political angle out here. But stock moves do suggest the TDP angle.
Coz TDP has submitted a letter of support to PM Modi as of today.
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I don’t think Political play has much do in this case, unlike Heritage Foods. Exide and Amara Raja are both in rally because of their play in EVs. Also they’ve both broken consolidation of many years.
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Amar Raja, Exide not only cater to EV, they would also cater to renewable energy storage solution for storage of solar wind energy during peak hours of day and release energy during night when Sun light may not be available for Grid stability.
The other storage solutions such as electrolyser would remain expensive for some time and hydro storage may not be possible at every location.
Apart from Automotive applications ( Lead acid and lithium) and renewable energy storage , it would also be a proxy play to the fast emerging data centers.
So it has multiple levers.
Irrespective of the political angle, my preferred pick is amar Raja energy solutions…Valuations seem reasonable , though it has run up quite a bit during last two days. so buy on decline may be a good idea.
Discl : not a buy sell recommendation.
i own this stock …so I may be biased.pl do your own assessment before investment
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A good write up on Amara Raja
A comparative study Amar Raja vs HBL power
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Completely wrong hypothesis. It would be great if the community sticks with data backed analysis than just make sweeping statements backed by uninformed opinions
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Amara came with good results with sales growing by 19.5% and EPS by 50%. They continue doing better than Exide. Concall notes below
FY24Q4
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Lead acid battery : 16% YOY volume growth domestic + 30% exports
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4-W volumes : OEM: 2%, after-market: 15%
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2-W volumes : OEM: 15%, after-market: 18-19%
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Industrial volumes : growth of 5-6%
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Exports grew by 19% in FY24
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Export growth is driven by new markets (USA/Africa) + APAC + Middle east. Ranked #1 in UAE and #2 in GCC
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Made international inroads on UPS products in existing geographies in Southeast Asia and Middle East, and in Europe and North America
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Trading revenue of 10-11%
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New energy business :
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116 cr. (vs 148 cr. in Q3FY24 and 88 cr. in Q4FY23)
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FY24: 522 cr. (vs 249 cr. in FY23; 110% growth)
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Batteries: 80%, Chargers: 20%
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Invested 650 cr. so far
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Commenced 2-W battery packs
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Looking for partner with technology + R&D pipeline + reliable supply chain
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Have submitted PLI application
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Considering asset turns of 1.3-1.4x and 10-11% EBITDA margins, can get ROE of 12-15% once they reach 10-11 Gwh
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Expect commercialization of 2Gwh line by end of FY26 (cost ~1500 cr.)
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Lubricant : 25 cr. in Q4. Targeting 150 cr. in FY25 (same margins as lead acid). Reflected in standalone numbers
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Related party mergers : Companies selling significant quantities to the listed entity has been merged or acquired. There is a construction company that will not be merged as majority of their sales comes from outside. An electronic manufacturing company providing home UPS systems going into Amaron Power Zone won’t be merged as its not seen as core
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Distribution increased to 550+ franchisees and 115,000+ retailers
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Battery recycling plant (150,000 MTPA capacity) – 80% completed, expect commercialization in Q2/Q3FY25. Consume 3 lakh tonnes of lead per annum with 70-75% coming from recycled sources. The plant will recycle both lead and plastic. Expect 2-3% increase in gross margins and 0.5-0.7% increase in EBITDA margins
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Tubular plant (1mn+ battery capacity) should commercialize by Q4FY25
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20 cr. one-time expenses due to stamp duty payments for merger with plastic division
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FY24 capex: 800 cr.
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FY25 capex: 1500 cr. (300-400 cr. lead acid + 1000-1100 cr. new energy)
Disclosure: Invested (position size here, sold shares in last-30 days)
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BENGALURU, June 24 (Reuters) - Indian battery maker Amara Raja Energy and Mobility [(AMAR.NS), said on Monday it signed a licensing agreement with Gotion-InoBat-Batteries (GIB), a unit of China-based Gotion High Tech Co [(002074.SZ), (https://www.reuters.com/markets/companies/002074.SZ), to produce lithium-ion batteries in India.
GIB EnergyX Slovakia, a joint venture between Gotion and Slovakia-based InoBat, will license Gotion’s lithium iron phosphate technology for lithium-ion cells to a unit of Amara Raja, the Indian battery maker added.
Under the licensing agreement, the Indian company will get access to cell technology IP, support for establishing Gigafactory facilities, and be integrated into Gotion’s global supply chain network.
Gotion, whose largest shareholder is the German automaker Volkswagen (https://www.reuters.com/markets/companies/VOWG_p.DE) , specializes in lithium-ion rechargeable batteries for new energy vehicles.
Indian automakers mostly import EV batteries from China and South Korea and, along with domestic battery suppliers, have been investing in developing lithium-ion battery production capabilities within the country.
Amara Raja’s rival Exide Energy Solutions [(EXID.NS), (https://www.reuters.com/markets/companies/EXID.NS) partnered with SVOLT in 2022 to build its own lithium-ion battery plant, which is expected to begin operations later this year.
In April, the South Korean auto duo, Hyundai Motor Co (005380.KS), opens new tab and Kia Corp (000270.KS), opens new tab signed a memorandum of understanding with Exide Energy Solutions to supply batteries for their electric vehicles, to boost competitiveness in the Indian auto market.
Earlier this year, Reliance Industries [(RELI.NS), (https://www.reuters.com/markets/companies/RELI.NS), JSW Neo Energy and Amara Raja Advanced Cell Technologies were among seven companies that [submitted bids]
(https://www.reuters.com/world/india/jsw-amara-raja-reliance-
submit-bids-make-batteries-india-2024-04-23/) to set up battery manufacturing gigafactories in India.
Those invested/tracking please Note [from a domain expert VP member who can’t post here]
- Gotion is a much superior technology partner than Exide’s partnership with Svolt
- Gotion has very strong LFP battery technology IP
- Gotion supplies VW and VW owns 26% stake in Gotion
Disc: Invested
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I saw in a article, that Gotion owns around 8000 patents in EV battery domain. But is this the only reason stock is up 16% today? Or there is any other news as well?
Disc - invested
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Battery Stocks (Understanding current trends of Battery Recycling.)
Amara Raja + Gravita + Pondy Oxides
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Can you please share link to the whole report or a pdf?
Here are my notes from their recent concall on partnership with Gotion.
28.06.2024 on Gotion-InoBat batteries
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Top 5 battery player in China (top 10 globally), top 3 in LFP chemistry. They are doing well in cylindrical batteries
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NMC: cylindrical form factor (for 2W); LFP will have multiple form factors (currently 3W are running on LFP; 75-80% of overall market will be LFP)
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Will use Gotion technology and supply chain. Believe that Gotion range of batteries will be enough for the Indian market
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16 GWh lithium ion capacity still the same. Initial capacity will be 4-6 GWh and will cater to automative market
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Hoping to get lower capex/GWh with this arrangement
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Mix of upfront technology fees + royalty (non-exclusive arrangement)
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Capex costs: 600-650/GWh
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Assuming $70-75/GWh cell prices for 11-12% ROCE. Current prices of $65 is not sustainable
Disclosure: same as before
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Hello,
In the below tracker, I have started tracking important company goals for Amara Raja.These goals are referred to as ‘monitorables’ in the tracker.I will update this document regularly to reflect the current status of these goals.
Here’s a snapshot of what the tracker includes:
- Company Ticker: For identifying the company
- Monitorable Description: Description of the goal or metric being tracked
- Date of Announcement: When the monitorable was announced
- Deadline: Target date for achieving the monitorable
- Status: Current progress (e.g., Not Fulfilled, Pending)
- Verification Link: A link to see where we got the information about the goal.
I hope this information makes it easier to observe how well companies are progressing towards their stated goals.
Screenshot of the tracker below:
Full tracker attached below:
Tracking Company Monitorables-22.xlsx (132.2 KB)
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