Hi Gourab,
Yes, what you are saying is correct and the concern. EV battery is expensive and a large part of the vehicle and hence OEMs would like to keep it in-house or have strong control. So don’t know how Amara Raja will be able to grow in this but perhaps at these valuations, I would like to have some exposure and watch…I’m not paying for growth…and a company like this with investments to be made from internal/past cash flows, they are usually sane about the investments they make…they won’t make a large investment just for the sake of it. If one observes, they have created a large R&D setup and team to work on these areas and decide how they want to go ahead.
So let’s see how it evolves.
Also there is a large difference in valuations of Exide vs Amara Raja while story is similar
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