Shares of this EV stock under the ‘mid-cap’ category jumped approximately 11 percent in Tuesday’s trading session after the company’s unit placed a bid to the “Ministry of Heavy Industries” (MHI) under the PLI scheme for ‘Advanced Chemistry Cell’ (ACC) manufacturing in India. In the past month, the company’s stock gained nearly 50 percent for its holders.
With a market capitalization of Rs 21,208.06 crores, the stocks of Amara Raja Energy & Mobility Limited started their trading session on Tuesday at Rs 1,045.25 and closed the session at Rs 1,158.75, gaining around 11 percent compared to the previous close of Rs 1,041.70 apiece.
Such sharp movements in the company’s share price were observed after multiple reports covering ‘Amara Raja Advanced Cell Tech’, a unit of Amara Raja Energy & Mobility Limited, applying under the Performance Linked Incentive (PLI) scheme for “Advanced Chemistry Cell” (ACC) manufacturing in India.
The Ministry of Heavy Industries (MHI), in January 2024, released a Request for Proposal (RFP) for shortlisting & selection of bidders under the PLI Scheme to set up ACC Manufacturing Units. The total manufacturing capacity, with a budgetary outlay of Rs 3,620 crores, was proposed at 10 Giga Watt Hour (GWh).
Apart from Amara Raja, other prominent players that placed a bid under the scheme include Reliance Industries, JSW Neo Energy, Waaree Energies, ACME Cleantech Solutions, etc, and placed a bid for a capacity of 70 GWh cumulatively.
Advanced Chemistry Cells are high-efficiency and high-capacity electrochemical energy storage cells used primarily where battery storage is crucial. Some of the primary uses of such cells include renewable energy storage, EVs, consumer electronics, etc.
The plan for Advanced Chemistry Cells is to strengthen the nation’s ecosystem for battery storage and electric mobility in India.
Coming onto the financials, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, witnessed a jump in numbers with the former increasing from Rs 2,811 crores during Q2FY24 to Rs 2,881 crores during Q3FY24, and the latter, keeping the time horizon the same, rising from Rs 214 crores to Rs 240 crores.
Incorporated in 1985, Amara Raja Energy & Mobility Limited is engaged in the business of manufacturing and selling lead-acid storage batteries for automotive and industrial applications in India. It performs the sale of batteries under various brand names, viz, PowerZone, Power Stack, AmaronVolt, Amaron, and Quanta.
Written by Amit Madnani
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