Amara Raja shares hit record high after arm inks licensing pact with GIB EnergyX; should you buy or wait?

Amara Raja share price today, Amara Raja share price target: Amara Raja Energy & Mobility (ARE&M) shares hogged the limelight on Tuesday, June 25, a day after Amara Raja Advanced Cell Technologies signed a licensing agreement with GIB EnergyX, a subsidiary of Gotion High-Tech Co, for lithium-ion cell technology. Amara Raja Advanced Cell Technologies is a wholly-owned subsidiary of Amara Raja Energy & Mobility. 

Amara Raja Energy & Mobility shares rose as much as 19.9 per cent to hit a lifetime high of Rs 1,655.2 on BSE in morning deals, surpassing the earlier peak of Rs 1,533 hit on June 10, 2024. The counter closed at Rs 1,647, up 19.4 per cent on BSE. 

Amara Raja share price target: Should you buy or wait? Here's what JP Morgan says

JPMorgan has maintained a neutral call on Amara Raja with a target of Rs 1,210 per share. JPMorgan in its note said, "The technical licensing agreement with Gotion High-Tech's subsidiary is an important milestone. The partnership will help accelerate the development of its Gigafactory."

According to the global brokerage, it should provide investors more confidence in the company's ability to progress towards the 16GWh capacity 1 target.

Clarity on details of this tech partnership, potential OEM contracts Nand any equity/debt funding will be key to further re-rating, the brokerage added.

"This comprehensive agreement enables Amara Raja to manufacture world class LFP cells in both cylindrical and prismatic form factors. The scope of licensing provides access to cell technology IP, support in establishing Gigafactory facilities conforming to latest generation process technologies, integration with Gotion’s global supply chain network for critical battery materials, and customer technical support for solution deployment," the firm said in its regulatory filing dated June 24.

What does Amara Raja Energy & Mobility do?

Amara Raja encompasses a diverse range of solutions and products, which includes energy storage solutions, Lithium-ion cell manufacturing, wide range of EV chargers, Li-ion battery pack assembly, automotive and industrial lubricants, and exploration of new chemistries, among others. 

In addition, Exide Industries shares gained nearly over eight per cent to clock a 52-week high of Rs 620 on BSE in morning deals.

For all other news related to business, politics, tech and auto, visit Zeebiz.com.