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

With ARE&M's revenue forecasted to drop below last year's level, investors are expected to take a cautious stance. Such declines typically affect a company's bottom line, reducing profitability and making investors hesitant to invest heavily in the company until financial performance improves.

Financial Ratios:

currentRatio 0.000000
forwardPE 16.117706
debtToEquity 3.530000
earningsGrowth -0.339000
revenueGrowth 0.042000
grossMargins 0.318210
operatingMargins 0.065080
trailingEps 47.050000
forwardEps 0.000000

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 low earnings and revenue growth suggest that the company may face shrinking profits. This could indicate underlying financial challenges, making it difficult for ARE&M to sustain its current profitability.
ARE&M's negative gross and operating margins indicate that the company is unprofitable, struggling to cover its production and operational costs. This reflects potential weaknesses in cost management or declining sales performance.

Price projections:

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

Amara Raja Energy & Mobility Limited's price projections have been revised downward over time, reflecting a shift in sentiment among analysts. The steady decline in projections points to a more cautious outlook on the company's future performance.

Recommendation changes over time:

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


Analysts' buy bias toward Amara Raja Energy & Mobility Limited suggests the stock is seen as a solid investment, potentially motivating investors to consider it for their portfolios. With this positive outlook, Amara Raja Energy & Mobility Limited is likely to be viewed as a secure place to allocate funds, driving further interest in the stock.