Amara Raja Batteries is in the limelight today morning. The stock rose over 2% to hit an intraday high at Rs.784.70. Its 52-week high stands at Rs.1025.
A few weeks back, the stock was beaten down as there was growing concern that the company was being complacent when it came to rising up to the new opportunity of making batteries for electric vehicles.
The company yesterday announced expansion of the Lead Acid Batteries business and the establishment of a New Energy SBU encompassing Lithium cell and battery pack, EV chargers, Energy Storage Systems, Advanced Home Energy Solutions and related products and services.
While the Board unanimously believes New Energy will provide substantial thrust over the coming decade, there remains a strong conviction on the long-term potential of the Lead Acid Batteries business. The vital role played by lead acid technology across a variety of applications provide significant growth opportunity in both the domestic and international markets. On the other hand, the emergence of lithium as an alternative energy storage technology opens up new and exciting growth opportunities.
The Board has decided to future-proof our business by repositioning the company as an Energy and Mobility player.