CMP – Rs. 351 Target – Rs. 400
The demand in industrial segment is strong and growth in the replacement market augurs well for the company. Strong auto sales in earlier years should now support replacement demand for batteries. The company has big expansion plans and entering new verticals and geographies translating into quicker growth. The DoT mandate about reduction of dependence on diesel also provides strong business opportunity in the telecom segment. Looking to the strong demand we expect that the company will continue to show its strong financial performance in the near future.