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

ARE&M's projected revenue decline from last year is likely to make investors cautious. Lower revenues often hurt a company's bottom line, leading investors to be concerned about the company's ability to maintain profitability and deliver strong financial results in the future.

Financial Ratios:

currentRatio 1.772000
forwardPE 14.258705
debtToEquity 4.005000
earningsGrowth 0.174000
revenueGrowth 0.067000
grossMargins 0.321200
operatingMargins 0.064600
trailingEps 49.270000
forwardEps 59.027100

ARE&M's current ratio being 1.772 shows it has more than enough assets to cover its short-term debts. The company's liquidity position is strong, with ample cash reserves available to meet its immediate financial obligations without strain.
ARE&M's Forward PE being in a good range suggests that its stock price is aligned well with earnings. The stock is not considered overpriced, offering room for future growth, which makes it an appealing investment opportunity with the potential for value appreciation.
ARE&M's forward EPS is greater than its trailing EPS, indicating that the company is expected to deliver higher profitability this year. This suggests that ARE&M is projected to improve its earnings, reflecting positive growth compared to last year's financial performance.

Price projections:

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

The current price of ARE&M aligns with projections, showing no clear risks or opportunities. This lack of volatility suggests a stable environment for investors, who may wish to hold off on major adjustments until market conditions change.

Recommendation changes over time:

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


Analysts have shown a buy bias for ARE&M, signaling it as a strong investment choice. This positive outlook could motivate investors to allocate funds to ARE&M, seeing it as a reliable and potentially profitable option, especially in an environment where the stock market is highly scrutinized.