More than 2 years back in May 2012 we recommended Amara Raja Batteries (NSE Code – AMARAJABAT) to our Alpha/Alpha + members around Rs 150/-(adjusted for 2:1 split), and now on 28th Sep’14 we recommended complete profit booking around current levels of 590-600.
It’s actually unfortunate that we had to recommend profit booking because we like the business and the long-term prospects of Amara Raja Batteries, however we were increasingly getting uncomfortable with some of promoter’s practices and thereby decided to exit from the stock.
Just to point out a few: we didn’t like the fact that Mr. Jaydev Galla jumped into active politics as we believe it’s diversification of his capabilities into an unrelated field and secondly we don’t like consistently increasing related-party transactions which are seemingly favorable to promoters.
Thus, we believe, in future promoters may enter into deals which could be detrimental to the interests of minority shareholders and as a matter of caution have suggested complete profit booking.
Detailed report on Amara Raja Batteries can be downloaded here: Amara Raja Batteries Ltd (NSE Code AMARAJABAT) – May’12 Katalyst Wealth Alpha Recommendation from Katalyst Wealth
Amara Raja Batteries Ltd (NSE Code AMARAJABAT) – May’12 Katalyst Wealth Alpha Recommendation from Katalyst Wealth