Personally for me, low promoter holding of Amara Raja is the deal breaker. With promoter holding only 28.06% stake, I really need to have huge confidence in the promoter integrity and honesty before putting my money on the block, which is not the case here. Also history shows that any new technological change may bring in new market leaders in that sector. So betting on old war horse to adopt and adapt in dynamic changing environment also needs to huge leap of faith on management and promoters.

Proof will come when EV targets by countries or states are met. And that should act as a POC (proof of concept) for other battery makers or other OEMs or even standalone Battery makers (who don’t garner eye balls coz of their legacy Lead Acid Battery journey)

Imo tesla coming to india is a proof of concept, battery infrastructure is on the rise and policy do hint at a up trend vs a down trend. Tesla is a EV car maker, so focus increases on developing and providing a infra for Tesla and in general car makers to flourish. Battery players are likely to benefit on several front and not just EV. Lead acid still remains a part of the ICE car and may be they still remain a preferred stakeholder for telecom operators. Not counting Data centers as that is a given. Amara raja has a good share in telecom domain which helps the legacy business for sure when they shift to li ion.

Negatives are less in number and +ves can come in which could re rate and clear out the arbitrage b/w exide and amara raja.

Plus the overhang of Amara raja promoter and their political alignment seems to be fizzling out. Double +ve imo in a country like india.

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