Vanguard Bought Stake in LIC-Backed Battery Manufacturing Company; Stock Gains Over 130 per cent in Just 1 Year!
The company’s shares have delivered a multibagger return of around 200 per cent to the shareholders in the past 2 years.
Amara Raja Batteries Limited (ARBL), a leader in the Indian storage battery industry, manufactures lead-acid batteries for industrial and automotive use. Serving major telecom providers, equipment manufacturers, the UPS sector, Indian Railways, and the Power, Oil & Gas industries, ARBL exports its products to over 50 countries. The company has recently terminated its shareholder's agreement with Johnson Controls.
In Q1 FY25, the Vanguard Total International Stock Index Fund purchased a 1.02 per cent stake in Amara Raja Batteries Limited.
At the start of the day's trading session, shares of Amara Raja Batteries Limited opened at Rs 1500.05 per share, compared to the previous day's closing figure of Rs 1466.95 per share on the BSE. Finally, the shares closed at Rs 1539.85 per share. The company's current market capitalization stands at Rs 28183.16 crore, and the stock has generated a return of over 145 per cent in the past 1 year.
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As per the Quarterly Results, in Q1 FY25, Amara Raja Batteries Limited recorded a revenue of Rs 3131 crore. The operating profit for Q1 FY25 stood at Rs 430 crore. The net profit for Q1 FY25 was Rs 245 crore compared to a profit of Rs 199 crore. Looking at the annual performance, the company generated a revenue of Rs 11260 crore in FY24, compared to Rs 10390 crore in FY23. The operating profit for FY24 was Rs 1625 crore with a net profit of Rs 906 crore compared to a profit of Rs 731 crore.
According to the shareholding pattern of Amara Raja Batteries Limited, promoters own a 32.86 per cent stake, while public investors hold 28.76 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.