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Amara Raja Energy & Mobility Ltd (IN:ARE&M)
:ARE&M
India Market
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Amara Raja Energy & Mobility Ltd (ARE&M) AI Stock Analysis

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IN:ARE&M

Amara Raja Energy & Mobility Ltd

(ARE&M)

Rating:79Outperform
Price Target:
₹1,104.00
▲(7.24% Upside)
The overall score is driven primarily by strong financial performance and an excellent valuation due to a high dividend yield. The absence of technical data limits the technical analysis score, though it is not the primary factor affecting the overall assessment. The company's robust balance sheet and profitability provide a stable foundation for future growth, despite challenges in maintaining cash reserves due to capital expenditures.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a strong market position and demand for the company's products, supporting long-term business expansion.
Balance Sheet Strength
A low debt-to-equity ratio highlights financial stability and reduces risk, providing a solid foundation for future investments and growth.
Profitability
Sustained profitability reflects effective cost management and competitive pricing, ensuring long-term financial health and shareholder value.
Negative Factors
Free Cash Flow Challenges
Negative free cash flow growth suggests potential liquidity issues, limiting the company's ability to invest in new opportunities or weather downturns.
EBIT Margin Decline
Decreasing EBIT margins can signal rising costs or pricing pressures, potentially affecting future profitability and competitive positioning.
Earnings Per Share Decline
A decline in EPS growth indicates challenges in profit generation, which could impact investor confidence and the company's ability to fund growth initiatives.

Amara Raja Energy & Mobility Ltd (ARE&M) vs. iShares MSCI India ETF (INDA)

Amara Raja Energy & Mobility Ltd Business Overview & Revenue Model

Company DescriptionAmara Raja Energy & Mobility Ltd (ARE&M) is a prominent player in the energy and mobility sectors, focusing on developing innovative solutions to cater to the growing demand for sustainable energy and advanced mobility systems. The company is known for its advancements in battery technology, energy storage systems, and electric vehicle infrastructure, offering a wide range of products and services that support the transition to cleaner energy and transportation solutions.
How the Company Makes MoneyARE&M generates revenue through the sale of its advanced battery technologies, particularly in the automotive and industrial sectors. The company also earns income from its energy storage solutions, which are vital for renewable energy integration and grid stability. Additionally, ARE&M capitalizes on the growing electric vehicle market by providing charging infrastructure and related services. Strategic partnerships with automotive companies, renewable energy firms, and government initiatives further bolster its revenue streams, allowing it to expand its influence in the energy and mobility domains.

Amara Raja Energy & Mobility Ltd Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue128.46B117.08B103.39B86.55B71.33B
Gross Profit41.67B36.96B31.89B24.06B22.91B
EBITDA18.43B17.60B14.71B10.94B11.96B
Net Income9.45B9.34B7.31B5.13B6.47B
Balance Sheet
Total Assets101.68B89.78B79.62B63.76B57.97B
Cash, Cash Equivalents and Short-Term Investments5.25B4.56B2.67B748.00M4.45B
Total Debt2.61B1.57B2.01B1.26B923.20M
Total Liabilities27.79B21.79B19.55B18.24B15.87B
Stockholders Equity73.89B67.99B60.07B45.52B42.10B
Cash Flow
Free Cash Flow1.51B3.95B4.34B-1.28B3.06B
Operating Cash Flow13.51B12.66B9.45B6.33B8.02B
Investing Cash Flow-11.32B-10.20B-7.73B-4.82B-6.35B
Financing Cash Flow-1.60B-2.42B-1.12B-2.13B-1.22B

Amara Raja Energy & Mobility Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
₹192.42B22.37
6.76%6.65%-13.48%
73
Outperform
₹86.41B45.65
0.33%30.63%48.78%
65
Neutral
$15.27B7.684.09%5.26%3.87%-62.32%
57
Neutral
₹94.81B26.43
0.19%68.31%61.93%
49
Neutral
₹77.95B
4.94%-328.07%
45
Neutral
₹62.46B57.18
108.08%
₹117.05B38.27
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ARE&M
Amara Raja Energy & Mobility Ltd
1,029.45
-367.92
-26.33%
IN:BORORENEW
Borosil Renewables Limited
568.50
64.50
12.80%
IN:KPIGREEN
KPI Green Energy Limited
482.50
-62.80
-11.52%
IN:SWSOLAR
Sterling And Wilson Renewable Energy Limited
264.00
-477.95
-64.42%
IN:TDPOWERSYS
TD Power Systems Limited
553.25
133.87
31.92%
IN:WAAREERTL
Waaree Renewable Technologies Ltd
1,122.80
-331.70
-22.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025