Amara Raja Energy & Mobility Ltd (IN:ARE&M)
:ARE&M
Want to see IN:ARE&M full AI Analyst Report?
Top Page
Amara Raja Energy & Mobility Ltd
(ARE&M)
Select Model
Select Model
Rating:74Outperform
Price Target:
₹892.00
▼(-3.25% Downside)
Action:Reiterated
Date:05/26/26
The score is driven primarily by a solid fundamental base (growth and low leverage) and very attractive valuation (low P/E and high dividend yield). The main offset is weaker cash conversion, with free cash flow turning negative most recently, and limited technical data preventing a momentum-based upgrade.
Positive Factors
Conservative balance sheet
Low leverage and a well-capitalized balance sheet provide durable financial resilience. This supports the company’s ability to fund organic growth, absorb cyclical demand swings in automotive and industrial markets, pursue selective capex or partnerships, and maintain operational continuity over the next several quarters.
Negative Factors
Free cash flow weakness
A recent shift to negative free cash flow despite positive operating cash flows signals heavier capex or working-capital strain. Persistent or recurring negative FCF would limit funding for dividends, debt reduction or reinvestment, reducing financial flexibility and raising refinancing or liquidity risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and a well-capitalized balance sheet provide durable financial resilience. This supports the company’s ability to fund organic growth, absorb cyclical demand swings in automotive and industrial markets, pursue selective capex or partnerships, and maintain operational continuity over the next several quarters.
Read all positive factors
Amara Raja Energy & Mobility Ltd (ARE&M) vs. iShares MSCI India ETF (INDA)
Market Cap
₹155.84B
Dividend Yield6.72%
Average Volume (3M)25.52K
Price to Earnings (P/E)17.4
Beta (1Y)1.14
Revenue Growth7.53%
EPS Growth-5.18%
CountryIN
Employees8,280
SectorEnergy
Sector Strength52
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)49.24
Shares Outstanding183,025,360
10 Day Avg. Volume21,379
30 Day Avg. Volume25,516
Financial Highlights & Ratios
PEG Ratio-3.36
Price to Book (P/B)1.93
Price to Sales (P/S)1.13
P/FCF Ratio398.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)51.22
Revenue Forecast (FY)₹148.11B
Amara Raja Energy & Mobility Ltd Business Overview & Revenue Model
Company Description
Amara Raja Energy & Mobility Limited (ARE&M), an Indian company established in Hyderabad in 1985, is a key player in the production and distribution of lead-acid storage batteries. These batteries are designed for a wide array of industrial and au...
How the Company Makes Money
ARE&M primarily makes money by selling batteries and related energy-storage products across automotive and industrial channels. Key revenue streams typically include: (1) Automotive batteries supplied to vehicle manufacturers (OEM channel) under s...
Amara Raja Energy & Mobility Ltd Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 131.40B | 138.14B | 127.86B | 116.54B | 103.39B | 86.55B |
| Gross Profit | 36.43B | 28.77B | 39.37B | 36.42B | 31.89B | 24.06B |
| EBITDA | 18.09B | 18.59B | 18.28B | 17.65B | 14.75B | 11.01B |
| Net Income | 9.01B | 8.96B | 9.45B | 9.34B | 7.31B | 5.13B |
Balance Sheet | ||||||
| Total Assets | 108.47B | 114.57B | 101.68B | 89.78B | 79.62B | 63.76B |
| Cash, Cash Equivalents and Short-Term Investments | 3.31B | 3.71B | 4.91B | 4.56B | 2.67B | 748.00M |
| Total Debt | 3.10B | 4.06B | 2.61B | 1.57B | 2.01B | 1.26B |
| Total Liabilities | 31.10B | 33.58B | 27.79B | 21.79B | 19.55B | 18.24B |
| Stockholders Equity | 77.37B | 80.99B | 73.89B | 67.99B | 60.07B | 45.52B |
Cash Flow | ||||||
| Free Cash Flow | 391.30M | -2.47B | 1.51B | 3.95B | 4.34B | -1.28B |
| Operating Cash Flow | 18.81B | 10.94B | 13.51B | 12.66B | 9.45B | 6.33B |
| Investing Cash Flow | -16.98B | -9.26B | -11.32B | -10.20B | -7.73B | -4.82B |
| Financing Cash Flow | -2.40B | -1.00B | -1.60B | -2.42B | -1.12B | -2.13B |
Amara Raja Energy & Mobility Ltd Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ₹101.84B | 21.22 | ― | ― | 108.51% | 108.87% | |
75 Outperform | ₹198.26B | 83.05 | ― | 0.23% | 45.16% | 36.74% | |
74 Outperform | ₹155.84B | 17.41 | ― | 6.72% | 7.53% | -5.18% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | ₹80.55B | 16.63 | ― | 0.20% | 55.34% | 45.62% | |
61 Neutral | ₹83.50B | 64.62 | ― | ― | 5.25% | ― | |
47 Neutral | ₹51.88B | -16.77 | ― | ― | 19.77% | -479.90% |
* Energy Sector Average
IN:ARE&M
Amara Raja Energy & Mobility Ltd
851.45
-108.70
-11.32%
IN:BORORENEW
Borosil Renewables Limited
595.25
61.50
11.52%
IN:KPIGREEN
KPI Green Energy Limited
407.50
-70.63
-14.77%
IN:SWSOLAR
Sterling And Wilson Renewable Energy Limited
222.15
-92.05
-29.30%
IN:TDPOWERSYS
TD Power Systems Limited
1,269.05
755.81
147.26%
IN:WAAREERTL
Waaree Renewable Technologies Ltd
976.00
-8.80
-0.89%
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.