Amara Raja Energy & Mobility Ltd.
NSE: ARE&MAmara Raja Energy & Mobility Ltd.: A 30-second snapshot
Amara Raja Energy & Mobility (ARE&M) trades at ₹823.95, currently 9.4% below its 200-day SMA of ₹909.25, with a 12-month decline of 12.66% and a 23.85% drawdown from its 52-week high. Trailing PE is 20.3x against a forward PE of 15.8x, while profit margin stands at 5.57% and debt-to-equity at 4.005 on a rising debt trajectory. The stock has crossed the 1 GWh milestone in lithium storage deployment for Indian telecom networks, marking a measurable operational step in its energy transition.
P/E
20.3
Forward P/E
15.8
ROE
—
Debt / Equity
4.00
Profit Margin
+5.6%
Div. Yield
+1.3%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
42/100
News
3 headlines · 1 positive · 0 negative
Amara Raja Energy & Mobility Crosses 1 Gwh Lithium Storage Deployment In India's Telecom Networks - TradingView
TradingView
Silence powers the show: Amaron charges Into IPL 2026 with a 'Long Game' strategy - Adgully.com
Adgully.com
Why did Amara Raja Energy shares skyrocket by 19% today? - Trade Brains
Trade Brains
Recent context
- ·Amara Raja crossed the 1 GWh mark in lithium-ion storage deployed across Indian telecom networks, according to an April 2026 report — a scale milestone in its new-energy segment.
- ·The Amaron brand launched an IPL 2026 marketing campaign, signalling continued investment in brand visibility for the consumer battery segment.
- ·One headline reported a 19% single-session price surge in late April 2026, though the stock's 12-month return of -12.66% suggests this move did not establish a durable recovery.
Strengths
- +Trailing PE of 20.3x is the lowest among the six tracked Auto-sector peers — Bajaj Auto (27.0x), Maruti (28.3x), and Eicher (36.0x) all trade at higher multiples, placing ARE&M at the cheapest end of the peer group on this metric.
- +Forward PE of 15.8x represents a 22% compression relative to trailing PE, implying consensus analyst projections of meaningful near-term earnings improvement.
- +FCF was positive in 3 of the available tracked years, and the company has maintained a dividend yield of 1.31% despite the earnings decline cycle.
- +Crossing 1 GWh of lithium storage deployed in Indian telecom networks is a measurable operational milestone in the energy-storage segment, which operates alongside the legacy lead-acid battery business.
Weaknesses
- −5-year earnings growth of -53% reflects sustained profit erosion; combined with 5-year revenue growth of only 4.2%, the business has not translated modest top-line gains into bottom-line recovery.
- −Debt-to-equity of 4.005 is materially above typical Auto-sector levels, and the debt trend is classified as rising — peers Bajaj Auto and M&M carry significantly lower leverage profiles.
- −Quality score of 35 ranks 4th of 6 peers in the Auto sector, with zero years of ROE above 15% recorded across the persistence data window, indicating an absence of demonstrated high-return performance.
- −Price has been below the 200-day SMA for a sustained period, currently 9.4% beneath it, with losses of 12.66% over 12 months and 9.19% over the last 3 months — resistance levels cluster at ₹871, ₹910, and ₹914.
Open questions
- ?Does the 5-year earnings decline of 53% reflect a structural margin problem in the lead-acid battery business, or a transitional drag from capital deployment into lithium-ion infrastructure?
- ?At a debt-to-equity of 4.005 on a rising trend, how does the company plan to service and reduce leverage if earnings recovery takes longer than the forward PE implies?
- ?Does the 1 GWh lithium storage milestone translate into revenue and margin contribution that is meaningful relative to the legacy business, or does energy storage remain a small fraction of total earnings?
- ?How does ARE&M compare to dedicated energy-storage peers (rather than traditional Auto peers) on capital efficiency metrics, given its pivot toward the energy transition?
Peer comparison: Auto
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ARE&M | Amara Raja Energy & Mobility Ltd.You're viewing | 20.3 | — | 35 |
| Industry avg | across 5 peers | 28.0 | +15.0% | 43 |
| EICHERMOT | Eicher Motors Ltd. | 36.0 | — | 60 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 27.0 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 20.5 | +18.8% | 52 |
| MARUTI | Maruti Suzuki India Ltd. | 28.3 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹823.95
SMA 50
₹800.04
SMA 200
₹909.25
RSI (14)
46.7 (neutral)
From 52w high
-23.9%
1Y return
-12.7%
3M return
-9.2%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of -53% alongside 5-year revenue growth of 4.2% indicates sustained bottom-line erosion on a near-flat top line — profit margin stands at 5.57%.
- highDebt-to-equity of 4.005 is materially elevated for the Auto sector, and the debt trend is classified as rising, compounding leverage risk at a time of declining earnings.
- mediumQuality score of 35 ranks 4th of 6 peers in the Auto sector. ROE data is unavailable and zero years of ROE above 15% are recorded in the persistence data, indicating no history of consistent high returns on equity.
- mediumPrice (₹823.95) is 9.4% below the 200-day SMA (₹909.25), down 12.66% over 12 months and 9.19% over 3 months, with a 23.85% drawdown from the 52-week high.
- lowNews sample covers only 3 articles over the review period; analyst consensus rating is unavailable despite 12 analysts tracked, limiting the depth of sentiment and coverage signals.
Cross-section contradictions
- Forward PE of 15.8 implies the market is pricing in meaningful earnings recovery from the trailing PE of 20.3, yet the 5-year earnings growth trend is -53% and debt is rising — the implied improvement has no visible historical basis.
- News sentiment is neutral-to-positive (1 positive, 2 neutral, 0 negative) and one headline cited a 19% single-session rally, yet the 12-month price return is -12.66% and the stock trades 9.4% below its 200-day SMA — the episodic positive news has not translated into a sustained price recovery.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days