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ARE%26M

Amara Raja Energy & Mobility Limited

Auto Ancillaries · NSE

News sentiment (4 articles)
0 bull2 neutral2 bear

Valuation Gauge

Margin of Safety
OVERVALUEDFAIRLY VALUEDUNDERVALUED

Current Price

Fair Value

₹432

Fair Value Analysis

₹432

Based on free cash flow projections and balance sheet strength analysis and earnings growth potential for Auto Ancillaries sector companies | ROCE improving (latest 21.2%) — capital allocation becoming more efficient.

High confidence

Cash Flow Analysis

33% weight

₹161

Balance Sheet Value

33% weight

₹622

Growth Valuation

33% weight

₹515

Price vs Market

ARE%26M
Nifty 50

Shareholding Pattern

Stock Health Score

B+

Financially Healthy

7.2 / 10

Profitability

8/10

ROE of 9.6% is acceptable for Auto Ancillaries sector (benchmark: 12%)

Debt & Leverage

10/10

D/E ratio of 0.0x is well within the Auto Ancillaries sector norm of 0.8x — strong balance sheet

Valuation vs Peers

10/10

P/E of 17.9x trades at a 90% discount to Auto Ancillaries sector median (187x) — attractively valued

Cash Flow

2/10

FCF margin of 1.2% — very thin despite positive FCF (₹151 Cr)

Earnings Growth

8/10

5yr EPS CAGR of 22.6% is in line with the Auto Ancillaries sector average of 17.5%

Dividend

6/10

Dividend yield of 1.5% provides moderate shareholder returns

Sentiment Trend — Last 30 Days

Historical Returns

Key Ratios & Growth

Revenue Growth (YoY)

+4.2%

Year-on-year revenue change

Profit Growth (YoY)

-53.0%

Year-on-year PAT change

Operating Cash Flow

₹1.4K Cr

TTM cash from operations

Key Financials

EPS (TTM)

₹40.6

P/E Ratio

17.9x

P/B Ratio

1.7x

ROE

9.6%

ROCE

16.6%

Debt / Equity

0.04x

Beta

0.67

Div Yield

1.5%

FCF (Cr)

₹151 Cr

Revenue (Cr)

₹12,786 Cr

EPS Growth 5Y

22.6%

Mkt Cap (Cr)

₹13,326 Cr

52W High

₹1,094

52W Low

₹670

Book Value/Share

₹423.3

Financial History

PeriodRevenueOp ProfitOPM%PATEPS
TTM₹13.3K Cr₹1.5K Cr11.0%₹743 Cr₹40.60
2025-03-31₹12.8K Cr₹1.6K Cr13.0%₹945 Cr₹51.61
2024-03-31₹11.7K Cr₹1.7K Cr14.0%₹934 Cr₹51.05
2023-03-31₹10.4K Cr₹1.4K Cr14.0%₹731 Cr₹42.79
2022-03-31₹8.7K Cr₹1.0K Cr12.0%₹513 Cr₹30.01
2021-03-31₹7.2K Cr₹1.1K Cr16.0%₹647 Cr₹37.87
2020-03-31₹6.8K Cr₹1.1K Cr16.0%₹661 Cr₹38.69
2019-03-31₹6.8K Cr₹955 Cr14.0%₹483 Cr₹28.29

Compounded Growth Rates

Sales Growth

3Y+8.7%
5Y+13.3%
10Y

Profit Growth

3Y+0.5%
5Y+2.8%
10Y

EPS Growth

3Y-1.7%
5Y+1.4%
10Y

Peer Comparison

Auto Ancillaries
StockPriceFair ValueMoS%P/EROESignal

Ramkrishna Forgings Limited

₹506.5₹652.5+22.4%42.214.4%FAIRLY_VALUED

Apollo Tyres

₹410.9₹334.1-23.0%286.0%OVERVALUED

JK Tyre & Industries Limited

₹393.2₹292.4-34.5%15.813.3%OVERVALUED

Exide Industries

₹298.8₹182.4-63.8%30.87.2%OVERVALUED

CEAT

₹3,366₹1,838.9-83.0%24.611.6%OVERVALUED

Suprajit Engineering

₹412.1₹208-98.1%40.710.2%OVERVALUED

Endurance Technologies

₹2,217.2₹1,114.8-98.9%34.414.7%OVERVALUED

Sundram Fasteners

₹763₹364.4-109.4%28.413.7%OVERVALUED

Institutional Activity

Bulk deals, block deals, short selling & delivery volume — NSE data

Insider Trading

Community Pulse

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