Amara Raja Energy & Mobility Ltd.
NSE: ARE&MAmara Raja Energy & Mobility Ltd.: A 30-second snapshot
ARE&M trades at ₹882.9, about 15.57% below its 52-week high but currently above both its 50-day SMA (₹856.5) and 200-day SMA (₹869.09), with a neutral RSI of 54.58. Trailing PE of 18.04x is the lowest among 6 tracked Auto peers, while ROE of 11.57% ranks 4th of 6 and debt-to-equity of 5.015 sits on a rising trend.
P/E
18.0
Forward P/E
15.3
ROE
+11.6%
Debt / Equity
5.01
Profit Margin
+6.5%
Div. Yield
+1.2%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
53/100
News
3 headlines · 1 positive · 0 negative
Amara Raja Launches Customer Qualification Plant in Telangana - Passionate In Marketing
Passionate In Marketing
Amara Raja Energy & Mobility Ltd Revenue Breakdown – NSE:ARE&M - TradingView
TradingView
IT stocks Persistent Systems, Wipro to turn ex-dividend next week; today last day to buy - Business Today
Business Today
Recent context
- ·Amara Raja opened a customer qualification plant in Telangana per a July 16 report, the sole clearly positive headline in a 3-article sample.
- ·A July 25 TradingView piece covered the company's revenue breakdown; sentiment on that item was recorded as neutral.
- ·Mean analyst rating stands at 3.15 across 13 analysts tracked (1-5 scale, lower = more constructive).
Strengths
- +Trailing PE of 18.04x (forward PE 15.30x) is the lowest of 6 tracked Auto peers, ranking 1st of 6 on the sector's PE metric.
- +Price sits above both the 50-day SMA (₹856.5) and 200-day SMA (₹869.09), with RSI at a neutral 54.58.
- +5-year revenue growth of 15.5% alongside reported 5-year earnings growth of 94.5%.
- +Quality score of 57 ranks 2nd of 6 tracked Auto peers.
Weaknesses
- −Debt-to-equity of 5.015 is elevated and on a rising trend, a leverage profile not matched by returns — ROE is 11.57% with zero years above 15% in the tracked persistence window.
- −Consistency score of 26 and only 3 years of positive free cash flow in the tracked window point to an uneven capital-allocation and cash-generation history; profit margin is 6.49%.
- −ROE of 11.57% ranks 4th of 6 Auto peers, trailing EICHERMOT (23.77%), M&M (18.75%) and MARUTI (14.43%).
- −Stock remains 15.57% below its 52-week high and down 9.72% over the trailing 12 months, despite the recent move back above both moving averages.
Open questions
- ?Does the 94.5% 5-year earnings growth figure reflect a low comparison base or a structural improvement in the core auto-components business?
- ?What is driving the rising debt-to-equity trend, and is it funding capacity expansion — such as the newly opened Telangana plant — or working-capital needs?
- ?How does the consistency score of 26 and 3 years of positive FCF compare with the company's own longer-run cash-generation pattern?
- ?What would need to change in the ROE trajectory for the return profile to converge with higher-ROE Auto peers like EICHERMOT and M&M?
Peer comparison: Auto
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ARE&M | Amara Raja Energy & Mobility Ltd.You're viewing | 18.0 | +11.6% | 57 |
| Industry avg | across 5 peers | 29.2 | +14.0% | 44 |
| EICHERMOT | Eicher Motors Ltd. | 38.8 | +23.8% | 62 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 26.9 | — | 57 |
| M&M | Mahindra & Mahindra Ltd. | 21.2 | +18.8% | 52 |
| MARUTI | Maruti Suzuki India Ltd. | 29.9 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹882.90
SMA 50
₹856.50
SMA 200
₹869.09
RSI (14)
54.6 (neutral)
From 52w high
-15.6%
1Y return
-9.7%
3M return
+0.4%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 5.015 is high for a non-financial Auto-components maker, with the debt trend classified as rising, while ROE stands at only 11.57% and zero years above 15% are recorded in the persistence data — leverage has expanded without a commensurate returns profile.
- mediumConsistency score of 26 and only 3 years of positive free cash flow in the tracked persistence window point to an uneven cash-generation history; profit margin is a thin 6.49%.
- mediumROE of 11.57% ranks 4th of 6 tracked Auto peers, trailing EICHERMOT (23.77%), M&M (18.75%) and MARUTI (14.43%), even as the stock ranks 1st of 6 on PE (18.04x) and 2nd of 6 on quality score.
- lowNews sample is limited to 3 articles in the review window, and one indexed headline (on Persistent Systems/Wipro ex-dividend dates) is unrelated to ARE&M, reducing the reliability of the sentiment read.
Cross-section contradictions
- Reported 5-year earnings growth of 94.5% contrasts with ROE of just 11.57% and zero years above 15% in the persistence tracking — the earnings growth has not translated into a sustained high-return profile.
- The stock trades above both its 50-DMA (₹856.5) and 200-DMA (₹869.09) with a neutral RSI of 54.58, yet remains 15.57% below its 52-week high and down 9.72% over the trailing 12 months — near-term technical stabilization sits alongside a still-negative 1-year trend.
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Fundamentals & technicals: refreshed 12 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 30 Jul 2026 · rotates through NIFTY 500 every ~5 days