India: Amara Raja Batteries: Hard to kick-start.

Recommendation: Sell

THE SUSTAINED slowdown in the automobile sector, coupled with the sluggishness in the existing area of operations, is likely to affect Amara Raja Batteries' performance. The company's performance in recent times has been not too impressive. Barring the last month or so, its share price has seen a steady downtrend in recent times. Given that the company's performance is unlikely to improve significantly in the near term, existing holders could look for opportunities to exit from Amara Raja Batteries.

Amara Raja Batteries is the pioneer in the valve- regulated lead acid (VRLA) battery market. The VRLA batteries find application in telecom …