Amara Raja Energy & Mobility Ltd (IN:ARE&M)
:ARE&M
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Amara Raja Energy & Mobility Ltd
(ARE&M)
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Rating:77Outperform
Price Target:
₹852.00
▼(-7.59% Downside)
Action:ReiteratedDate:12/18/25
Amara Raja Energy & Mobility Ltd's strong financial performance and attractive valuation are key strengths, though technical analysis is limited due to missing data. The company's stable balance sheet and high dividend yield enhance its appeal, but attention to cash flow management is necessary.
Positive Factors
Diversified End‑markets
A broad mix across OEM, replacement and industrial customers creates structural revenue resilience. OEM contracts give volume visibility, replacement sales deliver steady recurring demand from an installed base, and industrial projects add higher-margin, project-based revenue, reducing single-market exposure.
Negative Factors
Free Cash Flow Volatility
Irregular and declining free cash flow reduces internal funding for capex, R&D and working capital, increasing reliance on external financing. Over a 2–6 month horizon this undermines the company's ability to seize growth projects and raises execution risk for strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified End‑markets
A broad mix across OEM, replacement and industrial customers creates structural revenue resilience. OEM contracts give volume visibility, replacement sales deliver steady recurring demand from an installed base, and industrial projects add higher-margin, project-based revenue, reducing single-market exposure.
Read all positive factors
Amara Raja Energy & Mobility Ltd (ARE&M) vs. iShares MSCI India ETF (INDA)
Market Cap
₹137.53B
Dividend Yield6.72%
Average Volume (3M)25.52K
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth5.90%
EPS Growth-8.73%
CountryIN
Employees8,280
SectorEnergy
Sector Strength52
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)10.70
Shares Outstanding183,025,360
10 Day Avg. Volume21,379
30 Day Avg. Volume25,516
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.54
Price to Sales (P/S)2.81
P/FCF Ratio5.90
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)52.78
Revenue Forecast (FY)₹145.89B
Amara Raja Energy & Mobility Ltd Business Overview & Revenue Model
Company Description
Amara Raja Energy & Mobility Limited manufactures and sells lead-acid storage batteries for industrial and automotive applications in India. The company also provides installation, commissioning, and maintenance services. It sells its batteries un...
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
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 131.40B | 127.86B | 116.54B | 103.39B | 86.55B | 71.33B |
| Gross Profit | 36.43B | 39.37B | 36.42B | 31.89B | 24.06B | 22.91B |
| EBITDA | 18.09B | 18.28B | 17.65B | 14.75B | 11.01B | 12.03B |
| Net Income | 9.01B | 9.45B | 9.34B | 7.31B | 5.13B | 6.47B |
Balance Sheet | ||||||
| Total Assets | 108.47B | 101.68B | 89.78B | 79.62B | 63.76B | 57.97B |
| Cash, Cash Equivalents and Short-Term Investments | 3.31B | 4.91B | 4.56B | 2.67B | 748.00M | 4.45B |
| Total Debt | 3.10B | 2.61B | 1.57B | 2.01B | 1.26B | 923.20M |
| Total Liabilities | 31.10B | 27.79B | 21.79B | 19.55B | 18.24B | 15.87B |
| Stockholders Equity | 77.37B | 73.89B | 67.99B | 60.07B | 45.52B | 42.10B |
Cash Flow | ||||||
| Free Cash Flow | 391.30M | 1.51B | 3.95B | 4.34B | -1.28B | 3.06B |
| Operating Cash Flow | 18.81B | 13.51B | 12.66B | 9.45B | 6.33B | 8.02B |
| Investing Cash Flow | -16.98B | -11.32B | -10.20B | -7.73B | -4.82B | -6.35B |
| Financing Cash Flow | -2.40B | -1.60B | -2.42B | -1.12B | -2.13B | -1.22B |
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 |
|---|---|---|---|---|---|---|---|
77 Outperform | ₹137.53B | -5.83 | ― | 6.72% | 5.90% | -8.73% | |
70 Outperform | ₹138.44B | 48.62 | ― | 0.23% | 40.14% | 53.51% | |
66 Neutral | ₹80.31B | 22.48 | ― | 0.20% | 70.67% | 59.54% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | ₹93.23B | 21.02 | ― | ― | 63.07% | 74.37% | |
49 Neutral | ₹62.85B | 18.86 | ― | ― | 7.68% | -114.23% | |
43 Neutral | ₹41.53B | -446.21 | ― | ― | 112.24% | -474.43% |
* Energy Sector Average
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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.