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 is projected to see a decline in revenue compared to last year, which could lead to investor caution. A drop in earnings is often viewed as a negative signal for profitability, making it more difficult for the company to maintain investor confidence in its financial health.

Financial Ratios:

currentRatio 1.836000
forwardPE 15.261767
debtToEquity 3.530000
earningsGrowth -0.381000
revenueGrowth 0.052000
grossMargins 0.324360
operatingMargins 0.064310
trailingEps 51.610000
forwardEps 0.000000

Amara Raja Energy & Mobility Limited's current ratio being 1.836 suggests that it has more than enough liquidity to cover short-term debt obligations. The company's cash reserves and current assets are sufficient to meet immediate liabilities, signaling solid financial health and minimal risk.
ARE&M's Forward PE is at a healthy level, meaning the stock price is aligned favorably with earnings. This suggests that the stock isn't overpriced, providing room for growth and making it an appealing option for investors looking to capitalize on potential future gains.
ARE&M'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.
ARE&M's negative gross and operating margins point to financial difficulties, as the company is incurring losses at both the production and operational levels. This suggests a potential decline in profitability and raises concerns about its financial outlook.

Price projections:

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

ARE&M's price projections have gradually decreased, indicating a more conservative outlook from analysts. The repeated downward revisions suggest waning confidence in the company's ability to achieve its previous targets.

Recommendation changes over time:

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


ARE&M has garnered a buy bias from analysts recently, suggesting the stock is a good investment opportunity. This may lead to increased investor interest, as ARE&M is seen as a reliable place to park money for those looking to benefit from potential market gains and company growth.