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Amara Raja Energy & Mobility Ltd
(ARE&M)
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Rating:70Outperform
Price Target:
₹1,013.00
▲(10.02% Upside)
Action:Reiterated
Date:08/26/26
The score is driven primarily by solid financial strength (growth, profitability, and a low-leverage balance sheet), partially offset by weak recent free-cash-flow performance. Valuation is a positive contributor due to the high dividend yield and reasonable P/E, while technical signals are neutral because key indicators were not available.
Positive Factors
Sustained Revenue Growth
A multi-year expansion record indicates growing demand across automotive and industrial energy-storage applications. Continued growth provides operating scale and supports investment in newer mobility and energy-storage opportunities.
Negative Factors
Volatile Free Cash Flow
Recent negative free cash flow reduces financial flexibility even though operations generate cash. If investment needs or working-capital requirements remain elevated, internally funded expansion and shareholder distributions could face greater pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
A multi-year expansion record indicates growing demand across automotive and industrial energy-storage applications. Continued growth provides operating scale and supports investment in newer mobility and energy-storage opportunities.
Read all positive factors
Amara Raja Energy & Mobility Ltd (ARE&M) vs. iShares MSCI India ETF (INDA)
Market Cap
₹158.14B
Dividend Yield6.38%
Average Volume (3M)119.90K
Price to Earnings (P/E)17.2
Beta (1Y)1.03
Revenue Growth12.65%
EPS Growth7.16%
CountryIN
Employees10,805
SectorGeneral
Sector StrengthN/A
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)48.94
Shares Outstanding183,025,360
10 Day Avg. Volume33,846
30 Day Avg. Volume119,897
Financial Highlights & Ratios
PEG Ratio2.39
Price to Book (P/B)1.95
Price to Sales (P/S)1.08
P/FCF Ratio-141.27
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)48.46
Revenue Forecast (FY)₹155.12B
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 manufacturing and selling batteries and allied energy storage products, with revenue generated from both original equipment manufacturer (OEM) supply contracts and replacement/aftermarket demand.
1) Automotive batte...
Amara Raja Energy & Mobility Ltd Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 138.14B | 127.86B | 116.54B | 103.39B | 86.55B |
| Gross Profit | 28.77B | 39.37B | 36.42B | 31.89B | 24.06B |
| EBITDA | 18.59B | 18.28B | 17.65B | 14.75B | 11.01B |
| Net Income | 8.96B | 9.45B | 9.34B | 7.31B | 5.13B |
Balance Sheet | |||||
| Total Assets | 114.57B | 101.68B | 89.78B | 79.62B | 63.76B |
| Cash, Cash Equivalents and Short-Term Investments | 3.71B | 4.91B | 4.56B | 2.67B | 748.00M |
| Total Debt | 4.06B | 2.61B | 1.57B | 2.01B | 1.26B |
| Total Liabilities | 33.58B | 27.79B | 21.79B | 19.55B | 18.24B |
| Stockholders Equity | 80.99B | 73.89B | 67.99B | 60.07B | 45.52B |
Cash Flow | |||||
| Free Cash Flow | -2.47B | 1.51B | 3.95B | 4.34B | -1.28B |
| Operating Cash Flow | 10.94B | 13.51B | 12.66B | 9.45B | 6.33B |
| Investing Cash Flow | -9.26B | -11.32B | -10.20B | -7.73B | -4.82B |
| Financing Cash Flow | -1.00B | -1.60B | -2.42B | -1.12B | -2.13B |
Amara Raja Energy & Mobility Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹158.14B | 17.17 | ― | 6.38% | 12.65% | 7.16% | |
69 Neutral | ₹146.34B | 40.17 | ― | 0.45% | 13.36% | 26.08% | |
63 Neutral | ₹17.90B | 47.92 | ― | 0.06% | 7.40% | 14.85% | |
61 Neutral | ₹23.06B | 12.90 | ― | 0.79% | 8.74% | 113.98% | |
57 Neutral | ₹24.76B | -9.27 | ― | ― | 55.63% | -13.55% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
44 Neutral | ₹2.49B | -9.81 | ― | 1.51% | -3.56% | -186.71% |
* General Sector Average
IN:ARE&M
Amara Raja Energy & Mobility Ltd
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-160.25
-15.65%
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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.