Amara Raja Energy & Mobility Ltd.

NSE: ARE&M · Auto Components & Equipments

52W Range₹670 ₹1,027

Snapshot

Unlock Amara Raja Energy & Mobility Ltd.'s vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Amara Raja Energy & Mobility Limited is a prominent manufacturer of lead-acid storage batteries catering to both industrial and automotive sectors. The company provides a comprehensive range of energy storage solutions alongside installation, commissioning, and maintenance services.

Business Model

The company generates revenue through the sale of batteries under established brands like Amaron and Quanta, serving automobile OEMs, replacement markets, and industrial clients such as telecom and railways. It further monetises its operations by offering value-added installation and maintenance services.

  • Incorporation Year:1985

Management Commentary

Management has recently rebranded the entity to Amara Raja Energy & Mobility to reflect a strategic shift towards broader energy and mobility solutions beyond traditional battery manufacturing.

Growth Outlook

Growth is expected to be driven by the expansion of its energy storage portfolio and continued penetration into the Indian Ocean Rim export markets. The company is also positioning itself to capitalise on the evolving mobility landscape in India.

Key Risks

  • Raw Material Price Volatility. Fluctuations in the prices of lead and other key commodities can significantly impact manufacturing margins.
  • Technological Disruption. The rapid shift towards lithium-ion and alternative battery chemistries poses a threat to traditional lead-acid battery market share.
  • Cyclical Automotive Demand. The company's performance is closely tied to the cyclical nature of the automotive OEM sector and replacement demand.
  • Regulatory and Environmental Compliance. Stringent environmental regulations regarding lead recycling and battery disposal could increase operational costs.

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Key Metrics

REVENUE

₹14,627 Cr

TTM · consolidated

+12.7%YoY

NET PROFIT

₹922 Cr

TTM · consolidated

+7.2%YoY

EPS

₹50.37

TTM · consolidated

+7.2%YoY

RETURN ON EQUITY

11.9%

TTM · consolidated

+0.3 ppYoY

RETURN ON CAPITAL EMPLOYED

15.4%

TTM · consolidated

+0.0 ppYoY

P/E

17.2x

Q1 FY27 · consolidated

17.2 vs 20.0x5Y avg

EV/EBITDA

9.6x

Q1 FY27 · consolidated

9.6 vs 10.7x5Y avg

EBITDA MARGIN

11.3%

TTM · consolidated

-1.4 ppYoY

NET PROFIT MARGIN

4.5%

Q1 FY27 · consolidated

-0.3 ppYoY

DEBT TO EQUITY

0.0x

Q1 FY27 · consolidated

+0.01xYoY

Peers · Auto Components & Equipments

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Amara Raja Energy & Mobility Ltd.ARE&M
₹15,817 Cr17.169.6412.7%11.3%11.9%15.4%-13.7%
Minda Corporation Ltd.MINDACORP
₹16,803 Cr33.0322.6726.6%11.9%20.6%21.4%+39.9%
JBM Auto Ltd.JBMA
₹14,795 Cr48.4220.6212.5%13.7%16.8%24.3%+3.2%
Lumax Auto Technologies LimitedLUMAXTECH
₹13,304 Cr41.0518.3633.3%14.9%35.6%29.3%+84.3%
Ramkrishna Forgings Ltd.RKFORGE
₹12,744 Cr118.9920.568.5%16.3%3.4%7.7%+22.7%
Varroc Engineering LimitedVARROC
₹12,626 Cr63.9615.1214.7%9.2%12.0%20.0%+47.3%

As of Q1 FY27

Financials