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Amara Raja Energy & Mobility Ltd logo

Amara Raja Energy & Mobility Ltd

NSE: ARE&M BSE: 500008

850.40

(-0.43%)

Sun, 22 Feb 2026, 01:09 am

Amara Raja Energy & Mobility Analysis

dividend

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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%).
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Cons

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

health

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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%).
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Cons

  • High level of physical assets or inventory.

management

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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.
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Cons

    misc

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    Pros

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      Cons

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

      past

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      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%).
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      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

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      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.
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      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.

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