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

Investors may react cautiously to news that ARE&M's revenues are forecasted to be lower than last year's. Such declines are likely to have a negative effect on the company's bottom line, which can lead to concerns about profitability and hinder investor confidence in the company's future performance.

Financial Ratios:

currentRatio 1.836000
forwardPE 14.989695
debtToEquity 3.530000
earningsGrowth -0.381000
revenueGrowth 0.052000
grossMargins 0.321670
operatingMargins 0.065960
trailingEps 51.590000
forwardEps 0.000000

ARE&M's current ratio of 1.836 indicates strong liquidity, meaning the company can comfortably meet its short-term debt obligations. This financial position reflects ARE&M's ability to use its cash reserves and current assets to cover liabilities without facing any cash flow issues.
Amara Raja Energy & Mobility Limited's Forward PE is in a strong range, indicating that its stock price compares well with its earnings. The stock is not considered overpriced, leaving ample room for growth and making it a promising option for investors looking for value and future returns.
ARE&M's low earnings and revenue growth point to a potential decline in profits. This signals a downturn in financial performance, suggesting that the company might face challenges in maintaining its current level of profitability.
ARE&M's negative gross and operating margins signal that the company is not profitable, struggling to cover costs associated with production and operations. This could be a red flag for its financial performance moving forward.

Price projections:

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

The price of Amara Raja Energy & Mobility Limited has consistently been close to the lower limit of expectations. This trend may point to challenges in the company's performance, leading to concerns about its future growth potential.

Recommendation changes over time:

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


The analysts' recent buy bias for ARE&M indicates strong confidence in the stock's future performance. This could encourage more investors to view ARE&M as a worthwhile investment, positioning the company as a top choice for those seeking financial security and long-term growth opportunities.