On Tuesday, the share price of one of India’s leading battery manufacturers surged 20 percent on BSE to hit a new 52-week high at Rs. 1,655.2, after the company signed a technical licensing agreement with GIB EnergyX Slovakia s.r.o., a subsidiary of Gotion High-Tech Co Ltd.
With a market capitalisation of Rs. 29,101.95 crore, at 10:02 a.m., the shares of Amara Raja Energy & Mobility Limited were trading in the green at Rs. 1,595.65, up by 15.7 percent, compared to its previous closing price of Rs. 1,379.35.
What’s the news:
According to the latest regulatory filings with the stock exchanges, Amara Raja Advanced Cell Technologies Pvt. Ltd (ARACT), the company’s wholly-owned subsidiary, has signed a technical licensing agreement with GIB EnergyX Slovakia s.r.o., a subsidiary of Gotion High-Tech Co Ltd.
Under this agreement, GIB EnergyX will license Gotion’s advanced LFP (Lithium Iron Phosphate) technology for lithium-ion cells to ARACT. This will enable Amara Raja to manufacture world-class LFP cells in both cylindrical and prismatic form factors.
Benefits:
The licensing agreement provides access to cell technology IP, support in establishing Gigafactory facilities, integration with Gotion’s global supply chain network for critical battery materials, and customer technical support for solution deployment.
This technology transfer and service support will complement Amara Raja’s efforts to operationalize its Gigafactory manufacturing capacities and advanced R&D center, ‘e+ Energy Labs’.
Investments:
Last year, Amara Raja announced an investment outlay of Rs. 9,500 crores to establish the Amara Raja Giga Corridor in the state of Telangana.
Amara Raja and Gotion are both shareholders and board members of InoBat, an emerging lithium battery technology company in Slovakia, tackling advanced applications such as electric aviation and developing a robust ‘Cradle to Cradle’ ecosystem of the battery value chain.
Gotion High-Tech Co., Ltd, headquartered in China, is one of China’s pioneering enterprises in the independent development and manufacture of new energy batteries.
Financial & Stock Performance:
In terms of financials, the company’s total revenue from operations grew by 19.7 percent YoY from Rs. 2,429.44 crore in Q4 FY22-23 to Rs. 2,908 crore in Q4 FY23-24, accompanied by an increase in the net profit of 64.8 percent YoY from Rs. 139.42 crore to Rs. 229.8 crore, during the same period.
The stock has delivered nearly 148.8 percent of multibagger returns in one year, and around 95 percent of positive returns year-to-date.
About the company:
Amara Raja Energy & Mobility Limited is one of the largest manufacturers of energy storage products for both industrial and automotive applications in India.
The company encompasses a diverse range of solutions and products, which includes energy storage solutions, Lithium-ion cell manufacturing, a wide range of EV chargers, Li-ion battery pack assembly, automotive and industrial lubricants, and exploration of new chemistries, among others.
Written by Shivani Singh
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