Amara Raja shares hit record high after TDP’s strong election show

Amara Raja Energy and Mobility shares surged another 10 percent to hit a fresh all-time high of Rs 1,333 as investors turn bullish on the counter following Telugu Desam Party’s massive victory in the local assembly elections, consequently becoming a major player in national politics.

But how does that affect the Amara Raja stock? Amara Raja’s Managing Director Jay Dev Galla was a former MP from the party. The two-time MP and head of Amara Raja group decided not to contest Lok Sabha elections this year.

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“I have decided not to contest in this general election. I come from a family that has a legacy of fighting for people but it is not easy to sail on two boats in one go – to be in public life and also to continue as an entrepreneur. So I have decided to give a pause to my political life,” he said earlier this year.

In the fiscal fourth quarter, Amara Raja reported a significant 61.4 percent year-on-year (YoY) increase in net profit, amounting to Rs 230 crore. Meanwhile, its revenue from operations saw a notable climb of 19.5 percent to Rs 2,908 crore, up from Rs 2,433.2 crore in the year-ago period.

The demand for batteries in the automobile industry surged during the quarter, fueled by a more than 21 percent year-on-year rise in vehicle production, as per data from the Society of Indian Automobile Manufacturers (SIAM).

Amara Raja’s clientele includes major automakers such as Maruti Suzuki, Tata Motors, and Hero MotoCorp. Harshavardhana Gourineni, Executive Director of Automotive & Industrial Batteries, highlighted that the company witnessed robust and sustained growth in both the industrial and automotive sectors, resulting in a 10 percent increase in overall revenue.

At about 12:40 pm, shares of the company were trading at Rs 1,296, up 6.5 percent from the previous close on the NSE. Amara Raja shares have rallied 52 percent in the last three months.

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