Overall Fundamental outlook

Business Operations:

Sector: Industrials
Industry: Electrical Equipment & Parts

Amara Raja Energy & Mobility Limited, together with its subsidiaries, manufactures and sells lead-acid storage batteries for industrial and automotive applications in India and internationally. It operates through two segments, Lead Acid Batteries and Allied Products; and Others. The company provides new energy business related products; installation, commissioning, and maintenance services; and industrial chargers, integrated power systems, electric vehicle chargers for 2W and 3W applications, and other energy management devices. In addition, it develops, manufactures, and sells energy storage products, solutions, and technologies related to lithium cells, advanced cell chemistries, battery packs, and components. The company sells its batteries under the Amaron, PowerZone, Power Stack, AmaronVolt, and Quanta brands. It exports its products to various countries in the Indian Ocean Rim. The company supplies its batteries to various customer groups, such as telecom, railways, solar, motive, power control, international operations, defence, and UPS; and automobile original equipment manufacturers, replacement markets, and private label customers. The company was formerly known as Amara Raja Batteries Limited and changed its name to Amara Raja Energy & Mobility Limited in September 2023. Amara Raja Energy & Mobility Limited was incorporated in 1985 and is based in Hyderabad, India.

Revenue projections:

Revenue projections for ARE&M
Revenue projections for ARE&M

ARE&M's revenue is projected to decrease from last year, a development that could lead investors to adopt a more cautious approach. A revenue decline can negatively affect profitability, signaling challenges for the company and making it less attractive for those seeking solid financial performance.

Financial Ratios:

currentRatio 1.641000
forwardPE 14.523434
debtToEquity 5.015000
earningsGrowth 0.945000
revenueGrowth 0.155000
grossMargins 0.321330
operatingMargins 0.064400
trailingEps 48.920000
forwardEps 57.493290

ARE&M's current ratio being 1.641 suggests that it has more than enough liquidity to cover short-term debt obligations. The company's cash reserves and current assets are sufficient to meet immediate liabilities, signaling solid financial health and minimal risk.
Amara Raja Energy & Mobility Limited's Forward PE is in an attractive range, meaning its stock price aligns well with earnings and isn't inflated. This creates room for growth, making it a solid investment opportunity for those looking to benefit from potential price appreciation.
Positive earnings and revenue growth for Amara Raja Energy & Mobility Limited suggest that the company is expected to grow its business. This trend reflects strong financial performance, with continued profitability and sales increases indicating a bright outlook for future expansion.
With ARE&M's forward EPS higher than its trailing EPS, the company is expected to be more profitable in the current financial year. This signals confidence in ARE&M's growth potential, as improved earnings are forecasted compared to the prior year's performance.

Price projections:

Price projections for ARE&M
Price projections for ARE&M

Amara Raja Energy & Mobility Limited's price has consistently hovered around the lower end of analysts' projections. This pattern may reflect concerns regarding the company's ability to achieve its anticipated growth.

Recommendation changes over time:

Recommendations trend for ARE&M
Recommendations trend for ARE&M


A sell bias from analysts for ARE&M indicates caution, but investors should rely on a broader range of market indicators before making any decisions. This broader perspective will help provide a clearer understanding of ARE&M's overall market position and potential future trends.