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

Amara Raja Energy & Mobility Limited's revenue projections indicate a decrease from the prior year, which may make investors hesitant. A revenue decline could harm the company's bottom line, prompting investors to be more careful, as lower earnings often signal potential issues with profitability and future performance.

Financial Ratios:

currentRatio 1.83600
forwardPE 14.55860
debtToEquity 3.53000
earningsGrowth -0.38100
revenueGrowth 0.05200
grossMargins 0.32167
operatingMargins 0.06596
trailingEps 51.57000
forwardEps 0.00000

ARE&M's current ratio being 1.836 suggests the company will have no issues paying off its short-term debt. With sufficient cash reserves and current assets, ARE&M can easily cover its immediate liabilities, reflecting solid financial health.
ARE&M's Forward PE is in a favorable range, meaning its stock price compares well with its earnings and isn't overpriced. This leaves room for growth, making it a compelling opportunity for investors looking to benefit from potential future gains.
Amara Raja Energy & Mobility Limited's low growth in earnings and revenue indicates that profits could shrink. This signals potential financial difficulties for the company, suggesting that its profitability might be under pressure.
Amara Raja Energy & Mobility Limited's negative gross and operating margins suggest the company is not generating profit from either its production process or day-to-day operations. This could signal cost overruns or difficulties in maintaining revenue levels.

Price projections:

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

Amara Raja Energy & Mobility Limited's price projections have been revised downward gradually, suggesting that expectations for the company's future performance are becoming more conservative. Analysts may be tempering their optimism based on current trends.

Recommendation changes over time:

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


Analysts have shown a buy bias for ARE&M, marking it as a favorable investment option. This could inspire investors to see ARE&M as a strong place to park their money, given the positive outlook and growth potential associated with the stock in recent evaluations.