Amara Raja Energy & Mobility Limited (ARE&M) is a prominent player in the energy storage solutions sector in India, specializing in the production of lithium-ion batteries, a variety of electric vehicle (EV) chargers, and automotive lubricants. The company is one of the largest manufacturers of energy storage devices used in automobiles and industrial applications. Its products cater to major telecom service providers, telecom equipment manufacturers, UPS companies, the Indian Railways, and various segments within the power, oil, and gas industries.
Interim Dividend Announcement
In a recent stock exchange filing, ARE&M’s Board of Directors declared an interim dividend of ₹5.30 per equity share, which represents a substantial 530% of the ₹1 face value per share. This interim dividend will be paid on or before December 3, 2024. The record date for eligibility to receive the dividend has been set for November 14, 2024. Shareholders whose names appear on the register by the close of business hours on this date will qualify for the dividend, whether they hold shares in electronic form or are listed in the Register of Members.
Share Price Analysis and Targets
As of now, ARE&M’s shares are trading around ₹1,319.55. The stock recently bounced back from a support level near ₹1,220, which aligns with its 200-day Exponential Moving Average (EMA), indicating some stability at this price point. However, it is currently trading below its 20-day and 50-day EMAs, suggesting that the stock must overcome these moving averages to signal a stronger recovery.
Market analysts, including Mandar Bhojane from Choice Broking, have identified a potential target of ₹1,444 if the stock can break above these EMAs and sustain its position. They recommend watching for volume spikes and price movements near these EMAs for confirmation of a bullish trend. The recent low of ₹1,220 serves as a critical support level; if the stock drops below this, it may continue its downward trajectory, with a stop-loss suggested at ₹1,212. Conversely, a breakout above the resistance level around ₹1,370 could pave the way for short-term gains.
Amara Raja Energy & Mobility Limited is not only a leader in the energy storage market but also a reliable dividend payer, enhancing its attractiveness to investors. However, potential buyers should closely monitor technical indicators and market conditions to make informed investment decisions.
Disclaimer: This information is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a financial advisor before making investment decisions. Past performance is not indicative of future results.
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