Amara Raja Energy share price rallies over 12% to a fresh 52-week high; here’s what driving the stock price rally
- Amara Raja Energy shares have seen a sharp uptrend recently as the stock has jumped 48% in one month and more than 93% in the past one year.
Amara Raja Energy share price rallied over 12% to a fresh 52-week high of ₹1,167.55 apiece on the BSE, extending rally for the fifth consecutive session.
Amara Raja Energy shares have seen a sharp uptrend recently as the stock has jumped 48% in one month and more than 93% in the past one year.
On Tuesday, Amara Raja Energy & Mobility share price opened higher at ₹1,045.25 apiece as against previous close of ₹1,041.70 on BSE, and witnessed continued upward momentum.
Technical charts show Amara Raja Energy shares are heading to a new high of ₹1,300 level with a strong support at ₹1,000.
“Shares of Amara Raja Energy & Mobility clinched a new historic peak, triggering fresh upside in the coming sessions. The overall bias is headed in the direction of ₹1,250 - 1,300 levels. As long as the support of ₹1,000 mark is protected, the trend will witness an upward bias,” said Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox.
According to Bagkar, medium-term support for Amara Raja Energy stays at ₹850 levels.
Meanwhile, Amara Raja Energy is expected to report strong earnings for the fourth quarter of FY24. Amara Raja Energy Q4 results will be announced on May 28.
Amara Raja Energy is likely to post revenue growth of 15% year-on-year (YoY) at ₹2,799.7 crore in Q4FY24 driven by OEM demand in the two-wheelers and four-wheelers, aftermarket division and trading. Its net profit is expected to rise over 35% to ₹234.1 crore from ₹172.9 crore, YoY, as per Motilal Oswal estimates.
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At the operating level, earnings before interest, tax, depreciation and amortization (EBITDA) in the March quarter is expected to grow to ₹412.7 crore from ₹337.3 crore, while EBITDA margin is likely to improve to 14.7% from 13.9%. YoY.
The company’s industrial division would see an uptick due to the 5G expansion by telecom players. Its operating margin, or EBITDA margin, should see a sequential expansion due to a lag effect of softening lead prices in 3Q and 4Q, combined with operating leverage benefits, Motilal Oswal said.
At 2:10 pm, Amara Raja Energy shares were trading 11.26% higher at ₹1,159.00 apiece on the BSE.
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