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Company Business Module:
Amaraja Battery is engaged in the business of manufacturing lead-acid batteries for automotive and industrial. They preferred suppliers to manufacturers of Telecom equipment, UPS sector (OEM & Replacement), Indian Railway, and to power, oil & gas, etc. As we know increasing demand for EV vehicles based on that battery demand is increasing. Earlier one bike or car has only one battery and now one bike or car has 2-4 batteries. Because the battery is the heart of EV vehicles.
Technical Analysis:
After the first lockdown share price on one side rallied till 1000 and that was almost 200% from the bottom. In February 2021, the share price confirmed Head & Shoulder and start its downtrend. In one & half years share price has come down to around 500. Exactly near this bottom share price started to make the bottom and in October 2022, the share has confirmed Cup & Handle. That was the green flag for the uptrend. Recently share price has given a breakout to its resistance of 660 with volumes. The share price is trading around 700 and we are expecting 800/900/1000 levels in the coming few months. Immediate support is around 650/600.
Fundamental Analysis:
- The battery is a demanding product and demand is increasing.
- The company is almost debt free.
- Year-on-year net profits are increasing.
- ROE & ROCE are more than average.
- The company is expanding its business rapidly.
- FIIs have increased their stake in this company i.e. 36%.
Why Share Price Can Go Up?
Demand for EV vehicles is increasing and based on that sales are increasing. Also, the share price has made a strong base after falling 50% and it has given trend change confirmation on a weekly chart. Recently it has given a breakout to the previous top. Based on these parameters we are bullish from the current levels.
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