Amara Raja Energy & Mobility Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (3.5x coverage).
• Dividends per share have been stable in the past 10 years.
• Amara Raja Batteries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Amara Raja Batteries's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Amara Raja Batteries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Amara Raja Batteries is profitable, therefore cash runway is not a concern.
• Amara Raja Batteries is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (3426.2%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 64.7x debt.
• Amara Raja Batteries's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (4.5% vs 0.9% today).
• Interest payments on debt are well covered by earnings (EBIT is 65.4x coverage).
• Amara Raja Batteries's level of debt (0.9%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Amara Raja Batteries board of directors is about average.
• S.'s remuneration is lower than average for companies of similar size in India.
• S.'s compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Amara Raja Batteries management team is about average.

Cons

misc

Pros

Cons

• Amara Raja Batteries is not covered by any analysts.
• Amara Raja Batteries has significant price volatility in the past 3 months.

past

Pros

• Amara Raja Batteries's 1-year earnings growth exceeds its 5-year average (36.7% vs 5.9%)
• Amara Raja Batteries's year on year earnings growth rate has been positive over the past 5 years.
• Amara Raja Batteries used its assets more efficiently than the IN Electrical industry average last year based on Return on Assets.
• Amara Raja Batteries's earnings growth has exceeded the IN Electrical industry average in the past year (36.7% vs 11.7%).

Cons

• Amara Raja Batteries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Amara Raja Batteries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Amara Raja Batteries's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Amara Raja Batteries's share price is below the future cash flow value, and at a substantial discount (> 40%).
• AMARAJABAT outperformed the Electrical industry which returned -33.5% over the past year.
• AMARAJABAT outperformed the Market in India which returned -14.5% over the past year.
• NSEI:AMARAJABAT is up 16.4% outperforming the Electrical industry which returned 9.3% over the past month.
• NSEI:AMARAJABAT is up 16.4% outperforming the market in India which returned 8% over the past month.

Cons

• Amara Raja Batteries is overvalued based on assets compared to the IN Electrical industry average.
• Amara Raja Batteries is overvalued based on earnings compared to the IN Electrical industry average.
• Amara Raja Batteries is overvalued based on earnings compared to the India market.