Amara Raja Energy & Mobility Ltd - Stock Valuation and Financial Performance

BSE: 500008 | NSE: ARE&M | Batteries | Small Cap

Amara Raja Energy Share Price

1,196.60 -23.90 -1.96%
as on 20-Dec'24 16:59

DeciZen - make an informed investing decision on Amara Raja Energy

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Amara Raja Energy & Mobility stock performance -

mw4me loader
P/E Ratio (SA):
22.98
Market Cap:
21,900.8 Cr.
52-wk low:
729.5
52-wk high:
1,774.9

Is Amara Raja Energy & Mobility Ltd an attractive stock to invest in?

1. Is Amara Raja Energy & Mobility Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Amara Raja Energy & Mobility Ltd is a good quality company.

2. Is Amara Raja Energy & Mobility Ltd undervalued or overvalued?

The key valuation ratios of Amara Raja Energy & Mobility Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Amara Raja Energy & Mobility Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Amara Raja Energy & Mobility Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Amara Raja Energy:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Amara Raja Energy & Mobility Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 37.9%36.7%29.2%25.4%23.1%24%22.2%16%19.2%19.2%-
Value Creation
Index
1.81.71.20.90.70.80.70.20.40.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4,2114,6185,3176,0596,7936,8397,1508,69610,39011,26011,945
Sales YoY Gr.-9.7%15.2%14%12.1%0.7%4.5%21.6%19.5%8.4%-
Adj EPS 23.628.327.626.727.738.13728.843.748.552.1
YoY Gr.-20.3%-2.8%-3.3%4%37.5%-3%-22%51.5%11%-
BVPS (₹) 99.5123.9151.8172195.3214246.5266.5312.2369.9395.4
Adj Net
Profit
402484471455473651631493746888953
Cash Flow from Ops. 3955555533225411,1778026339561,314-
Debt/CF from Ops. 0.20.10.10.20.10000.10-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.6%10.6%16.4%8.4%
Adj EPS 8.4%11.9%9.5%11%
BVPS15.7%13.6%14.5%18.5%
Share Price 4.1% 10.6% 25.6% 56.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
26.325.42016.515.118.616.111.314.113.913.6
Op. Profit
Mgn %
16.717.91614.614.116.115.611.81414.414.1
Net Profit
Mgn %
9.610.58.97.579.58.85.77.27.98
Debt to
Equity
00000000000
Working Cap
Days
87928710611711711711010710653
Cash Conv.
Cycle
4947485965616263575624

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 13.60%

Sales growth is growing at healthy rate in last 3 years 16.35%

Sales growth is good in last 4 quarters at 12.19%

Net Profit has been subdued in last 3 years 9.48%

Latest Financials - Amara Raja Energy & Mobility Ltd.

Standalone Consolidated
TTM EPS (₹) 52.1 53
TTM Sales (₹ Cr.) 11,945 12,466
BVPS (₹.) 395.4 397
Reserves (₹ Cr.) 7,236 7,248
P/BV 3.03 3.01
PE 22.98 22.60
From the Market
52 Week Low / High (₹) 729.45 / 1774.90
All Time Low / High (₹) 1.67 / 1774.90
Market Cap (₹ Cr.) 21,901
Equity (₹ Cr.) 18.3
Face Value (₹) 1
Industry PE 32.7

Management X-Ray of Amara Raja Energy:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Amara Raja Energy

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales4,2114,6185,3176,0596,7936,8397,1508,69610,39011,260
Operating Expenses 3,5103,7954,4685,1765,8425,7416,0357,6758,9569,639
Manufacturing Costs195226246266305327328400529465
Material Costs2,7762,9113,4884,1164,6444,4474,7456,1216,9987,534
Employee Cost 195243278309345385426499651699
Other Costs 343416456484548582537655778940
Operating Profit 7028238498839511,0981,1151,0211,4341,621
Operating Profit Margin (%) 16.7%17.8%16.0%14.6%14.0%16.1%15.6%11.7%13.8%14.4%
Other Income 424650664855888091102
Interest 066571211153033
Depreciation 134141191230261301319396450479
Exceptional Items 00000000-480
Profit Before Tax 6107237027147308418736909971,211
Tax 199231224243247180227179266305
Profit After Tax 411492478471483661647511731906
PAT Margin (%) 9.8%10.6%9.0%7.8%7.1%9.7%9.0%5.9%7.0%8.0%
Adjusted EPS (₹)24.128.828.027.628.338.737.929.942.849.5
Dividend Payout Ratio (%)15%15%15%15%25%28%29%15%14%20%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 1,7002,1162,5932,9373,3353,6564,2104,5515,3336,769
Share Capital 17171717171717171718
Reserves 1,6822,0992,5762,9203,3183,6394,1934,5345,3166,750
Minority Interest0000000000
Debt74726958473423178026
Long Term Debt74726958473423178026
Short Term Debt0000000000
Trade Payables261349418592510615746806759840
Others Liabilities 5374135045806036968171,0011,7661,200
Total Liabilities 2,5712,9513,5854,1694,4965,0015,7976,3767,9378,834

Fixed Assets

Gross Block1,4411,4861,8162,2532,6162,9273,8634,2505,7245,903
Accumulated Depreciation4971343235508041,0981,4081,7572,0352,353
Net Fixed Assets9441,3521,4921,7031,8131,8292,4552,4923,6883,550
CWIP 86123240226315827399830234322
Investments 16201473520156281784861,479
Inventories4186028171,0501,0611,1431,4381,8041,7331,810
Trade Receivables5545925707827696367877938901,017
Cash Equivalents 222150171111728517654100104
Others Assets330112147260446325261326805552
Total Assets 2,5712,9513,5854,1694,4965,0015,7976,3767,9378,834

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 3955555533225411,1778026339561,314
PBT 6107237027147308418736909971,211
Adjustment 122123167197237283258383502459
Changes in Working Capital -145-73-114-345-184289-130-241-287-27
Tax Paid -192-218-202-244-242-236-200-199-256-329
Cash Flow From Investing Activity -289-394-535-244-463-850-635-482-789-1,072
Capex -406-490-430-385-528-700-496-760-465-440
Net Investments 10286-11013562-123-115214-54-130
Others 1510664-27-2464-270-502
Cash Flow From Financing Activity -75-164-2-138-92-364-122-213-112-242
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -1-2-2-9-5-12-12-11-11-58
Interest Paid 000-1-1-5-4-7-16-19
Dividend Paid 0-1610-107-71-331-85-171-58-137
Others -7300-22-15-16-20-25-27-29
Net Cash Flow 31-316-61-13-3746-62550
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)26.8325.7720.3217.0415.4218.9116.4511.6714.7914.97
ROCE (%)37.8536.7229.1625.3923.0624.0422.2415.9919.219.23
Asset Turnover Ratio2.041.881.831.611.571.441.321.481.511.39
PAT to CFO Conversion(x)0.961.131.160.681.121.781.241.241.311.45
Working Capital Days
Receivable Days40403540423736322830
Inventory Days30364355575966666056
Payable Days26384045434652464139

Amara Raja Energy & Mobility Ltd Stock News

Amara Raja Energy & Mobility Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Amara Raja Energy on 20-Dec-2024 16:59 is ₹1,196.6.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 20-Dec-2024 16:59 the market cap of Amara Raja Energy stood at ₹21,900.8.
The latest P/E ratio of Amara Raja Energy as of 20-Dec-2024 16:59 is 22.98.
The latest P/B ratio of Amara Raja Energy as of 20-Dec-2024 16:59 is 3.03.
The 52-week high of Amara Raja Energy is ₹1,774.9 and the 52-week low is ₹729.5.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Amara Raja Energy is ₹11,945 ( Cr.) .

About Amara Raja Energy & Mobility Ltd

Amara Raja Batteries (ARBL), the flagship company of the Amara Raja Group, is a leading manufacturer of automotive batteries under the brands - Amaron and PowerZone, which are distributed through a large pan-India sales & service retail network. The company's Industrial and Automotive batteries are exported to several countries across the globe. It is the first company to manufacture Valve Regulated Lead-Acid (VRLA) batteries in India. They are engineered to provide the performance reliability and consistency over the life of the product and they offer a long battery life with minimal maintenance. In India, the company is the preferred supplier to major telecom service providers, Telecom equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways and to Power, Oil & Gas among other industry segments. 

The company’s manufacturing facilities are equipped with state-of-the-art machines and technology. Each plant is designed to improve shop floor efficiencies by adopting globally recognized concepts such as Lean Six Sigma, 5S and Quality Circle projects. The manufacturing facilities have imbibed low-cost automation to reduce operator fatigue which helps in improving product quality and person productivity. Its World-Class integrated manufacturing facilities are constantly evolving and are ever ready to adopt the latest technological advancements. Its in-house R & D centre, which is recognized by Government of India, ensures constant innovation and best in class products.

Business area of the company

The company is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry. Amara Raja Automotive Batteries offers a wide range of battery solutions in Passenger Vehicles, Three Wheelers, Two Wheelers, Commercial Vehicles, Farm Vehicles, and Home UPS/Inverters. Besides, Amara Raja Industrial Batteries offers a broad range of battery solutions in segments like UPS, Telecom, Railways, Defence and Motive.

Products

  • PowerStack
  • Amaron Sleek 
  • Amaron Volt 
  • Genpro 
  • Amaron Quanta
  • Amaron Quanta-HWS 
  • Amaron Quanta -HUPS
  • Amaron Brute
  • Amaron Solar
  • Amaron Quanta S-XEL

Awards and Accolades

  • 2013: Received the Gold Award for support in the SME category in the event organized by Indus Towers.
  • 2014: Presented with the Silver Award for support in the category 'Infra - Equipment’ in event organized by Indus Towers.
  • 2016: Bagged recognition for being 'Telecom Infra Leader' in the Power Solutions Category for the year 2016 at the 24th Annual CyberMedia ICT Awards.
  • 2016: Received the Gold Award for support in the category 'Infra-Equipment' in event organized by Indus Towers.
  • 2017: Received an award from Tata Motors and this award is in recognition for its excellence in the field of QCDM parameters (Excellence in Quality, Delivery, and Relationship Building).
  • 2017: Bagged 'India's Most Promising Company of The Year 2016-2017' award during the 12th CNBC TV18 India Business Leader Awards that was held in Delhi.
  • 2017: Received awards for 'Consistent High-Quality Performance' and 'Design & Development' from Maruti Suzuki India.
  • 2017: Received Overall Performance Award – Bosch.
  • 2017: Amara Raja Group Small Battery Division has won the First Runner Award in Eleventh CII Six Sigma National Conference and Competition under the 'Manufacturing Industry (Discrete and Assembly Line)' category.
  • 2018: Received first prize in AP Green awards 2017 under Industries (Private) category from A.P. Greening and Beautification Corporation, Government of Andhra Pradesh.
  • 2018: Presented with Gold Award for support in the category 'Infra Equipment- Supply in the event organized by Indus Towers.
  • 2018: Received an award for 'High-Quality Performance' from Bajaj Auto.
  • 2018: Received an award for 'Best Vendor Rating and System Audit' from Maruti Suzuki India.
  • 2018: Secured second place in 'Construction Safety' in a competition held during the quarterly award function in Maharashtra Circle.

History and Milestones

  • 1995: Incorporation of the company.
  • 1989: Inks technology agreement with GNB Batteries Inc.
  • 1990: Introduced VRLA technology in India.
  • 1991: Goes public.
  • 1991: Launched VRLA batteries for telecom application.
  • 1992: Commenced production of VRLA batteries.
  • 1993: Launched batteries for Indian Railways.
  • 1995: First export shipment of Industrial Batteries by company.
  • 1996: Launched VRLA batteries in Indian Railways for Rolling Stack Application.
  • 1997: Received ISO certification.
  • 1997: Diversified into automotive batteries and signed JV with Johnson Controls Inc.
  • 1998: Received QS-9000 certification.
  • 1998: Supply of first batch of automotive batteries to Ford India.
  • 2000: Launched Brand AMARON Automotive batteries.
  • 2001: Received ISO 14001 certification.
  • 2001: Corporate logo launched.
  • 2001: Inauguration of Automotive battery plant.
  • 2002: Industrial Batteries division (IBD) of company launched Quanta Branded UPS Batteries.
  • 2002: Automotive Batteries division (ABD) of company launched Amaron Hi Way and Amaron Harvest batteries.
  • 2004: Automotive Batteries division (ABD) of company launched Amaron PRO, Amaron GO, Amaron FRESH and Amaron SHIELD batteries.
  • 2007: Launched Brand Powerzone Automotive Batteries.
  • 2007: Inaugurated 2 Wheeler battery plant.
  • 2008: Launched Amaron Probike Rider, the first AGM batteries for two wheelers.
  • 2010: Unveiled new Amaron logo.
  • 2010: Launched Amaron Sleek and Amaron Volt brands for Industrial applications.
  • 2012: QRS series introduced for Telecom to aid efforts in reduction of diesel consumption.
  • 2012: Launched Amaron Current HUPS Tubular Batteries.
  • 2014: Inaugurated world’s largest integrated Medium Valve Regulated Lead Acid (MVRLA) battery plant at ARGC, Nunegundlapalli, Chittoor, Andhra Pradesh, India.
  • 2016: Inaugurated Tubular battery plant.
  • 2017: Launch of Amaron Brute brand for Motive Power by Industrial Batteries Division.
  • 2017: Inaugurated India’s largest and most advanced two wheeler battery plant at Amara Raja Growth Corridor (ARGC).
  • 2018: Incorporation of wholly owned subsidiary in Sharjah Airport International Free Zone (SAIF Zone).
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