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Amara Raja Batteries

BSE:500008
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
500008
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₹110B
Market Cap
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Last updated 2019/07/16 12:37
Company description

Amara Raja Batteries Limited manufactures and sells lead-acid storage batteries for industrial and automotive applications in India. The last earnings update was 20 days ago. More info.

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500008 Share Price and Events
7 Day Returns
-0.4%
BSE:500008
-2%
IN Electrical
-0.5%
IN Market
1 Year Returns
-18.2%
BSE:500008
-9.5%
IN Electrical
-1.8%
IN Market
500008 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Amara Raja Batteries (500008) -0.4% 4.6% -8.9% -18.2% -26.3% 33.4%
IN Electrical -2% -6.2% -9.9% -9.5% 10.7% 8.8%
IN Market -0.5% -2.7% -4.7% -1.8% 22.9% 34.2%
1 Year Return vs Industry and Market
  • 500008 underperformed the Electrical industry which returned -9.5% over the past year.
  • 500008 underperformed the Market in India which returned -1.8% over the past year.
Price Volatility
500008
Industry
5yr Volatility vs Market

500008 Value

 Is Amara Raja Batteries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Amara Raja Batteries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Amara Raja Batteries.

BSE:500008 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 17.3%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:500008
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.19
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.187 (1 + (1- 35%) (0.53%)) 		1.128
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.128 * 8.6%) 		17.25%

Discounted Cash Flow Calculation for BSE:500008 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Amara Raja Batteries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BSE:500008 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 17.25%)
2020 2,920.13 Analyst x8 2,490.50
2021 3,686.60 Analyst x10 2,681.61
2022 4,064.00 Analyst x2 2,521.20
2023 4,433.28 Est @ 9.09% 2,345.65
2024 4,815.67 Est @ 8.63% 2,173.10
2025 5,215.51 Est @ 8.3% 2,007.27
2026 5,636.77 Est @ 8.08% 1,850.22
2027 6,083.14 Est @ 7.92% 1,702.97
2028 6,558.13 Est @ 7.81% 1,565.82
2029 7,065.13 Est @ 7.73% 1,438.69
Present value of next 10 years cash flows ₹20,777.03
BSE:500008 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹7,065.13 × (1 + 7.55%) ÷ (17.25% – 7.55%) 		₹78,330.15
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹78,330.15 ÷ (1 + 17.25%)10 		₹15,950.56
BSE:500008 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹20,777.03 + ₹15,950.56 		₹36,727.59
Equity Value per Share
(INR)		 = Total value / Shares Outstanding
= ₹36,727.59 / 170.81 		₹215.02
BSE:500008 Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹215.02
Current discount Discount to share price of ₹642.00
= -1 x (₹642.00 - ₹215.02) / ₹215.02 		-198.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Amara Raja Batteries is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Amara Raja Batteries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Amara Raja Batteries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:500008 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹28.29
BSE:500008 Share Price ** BSE (2019-07-16) in INR ₹642
India Electrical Industry PE Ratio Median Figure of 73 Publicly-Listed Electrical Companies 12.17x
India Market PE Ratio Median Figure of 2,834 Publicly-Listed Companies 14.78x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Amara Raja Batteries.

BSE:500008 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500008 Share Price ÷ EPS (both in INR)

= 642 ÷ 28.29

 22.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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.
Price based on expected Growth
Does Amara Raja Batteries's expected growth come at a high price?
Raw Data
BSE:500008 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts		 12.8%per year
India Electrical Industry PEG Ratio Median Figure of 15 Publicly-Listed Electrical Companies 1.15x
India Market PEG Ratio Median Figure of 536 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

BSE:500008 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.69x ÷ 12.8%

 1.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Amara Raja Batteries is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Amara Raja Batteries's assets?
Raw Data
BSE:500008 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹195.25
BSE:500008 Share Price * BSE (2019-07-16) in INR ₹642
India Electrical Industry PB Ratio Median Figure of 86 Publicly-Listed Electrical Companies 0.86x
India Market PB Ratio Median Figure of 3,668 Publicly-Listed Companies 0.95x
BSE:500008 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500008 Share Price ÷ Book Value per Share (both in INR)

= 642 ÷ 195.25

 3.29x

* Primary Listing of Amara Raja Batteries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Amara Raja Batteries is overvalued based on assets compared to the IN Electrical industry average.
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Value checks
We assess Amara Raja Batteries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
    5. Amara Raja Batteries has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

500008 Future Performance

 How is Amara Raja Batteries expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Amara Raja Batteries expected to grow at an attractive rate?
  • Amara Raja Batteries's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Amara Raja Batteries's earnings growth is positive but not above the India market average.
  • Amara Raja Batteries's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
BSE:500008 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:500008 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 12.8%
BSE:500008 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 9.3%
India Electrical Industry Earnings Growth Rate Market Cap Weighted Average 18.2%
India Electrical Industry Revenue Growth Rate Market Cap Weighted Average 11.5%
India Market Earnings Growth Rate Market Cap Weighted Average 17%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:500008 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:500008 Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 92,687 9,454 7,377 3
2021-03-31 81,241 7,974 6,299 14
2020-03-31 74,291 7,795 5,599 13
BSE:500008 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 67,931 5,411 4,832
2018-12-31 67,988 4,740
2018-09-30 66,576 4,775
2018-06-30 63,321 4,845
2018-03-31 60,509 3,217 4,713
2017-12-31 58,455 4,607
2017-09-30 56,190 4,386
2017-06-30 55,245 4,477
2017-03-31 53,352 5,529 4,785
2016-12-31 51,923 4,862
2016-09-30 50,763 5,107
2016-06-30 48,819 4,978

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Amara Raja Batteries's earnings are expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).
  • Amara Raja Batteries's revenue is expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:500008 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Amara Raja Batteries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:500008 Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 43.20 43.40 43.00 2.00
2021-03-31 36.69 41.00 32.70 14.00
2020-03-31 32.81 35.20 30.00 15.00
BSE:500008 Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 28.29
2018-12-31 27.74
2018-09-30 27.96
2018-06-30 28.36
2018-03-31 27.59
2017-12-31 26.97
2017-09-30 25.67
2017-06-30 26.21
2017-03-31 28.01
2016-12-31 28.46
2016-09-30 29.89
2016-06-30 29.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Amara Raja Batteries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Amara Raja Batteries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Amara Raja Batteries has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

500008 Past Performance

  How has Amara Raja Batteries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Amara Raja Batteries's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Amara Raja Batteries's year on year earnings growth rate has been positive over the past 5 years.
  • Amara Raja Batteries's 1-year earnings growth is less than its 5-year average (2.5% vs 4.4%)
  • Amara Raja Batteries's earnings growth has not exceeded the IN Electrical industry average in the past year (2.5% vs 18.9%).
Earnings and Revenue History
Amara Raja Batteries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Amara Raja Batteries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:500008 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 67,931.10 4,832.30 3,934.10
2018-12-31 67,988.40 4,739.50 3,885.60
2018-09-30 66,576.40 4,775.10 3,777.10
2018-06-30 63,320.90 4,845.00 3,590.40
2018-03-31 60,508.70 4,713.20 3,555.50
2017-12-31 58,455.20 4,607.10 3,427.80
2017-09-30 56,189.60 4,385.80 3,393.50
2017-06-30 55,245.20 4,476.80 3,345.00
2017-03-31 53,352.00 4,784.90 3,199.10
2016-12-31 51,923.27 4,861.75 3,479.46
2016-09-30 50,763.07 5,106.75 3,373.46
2016-06-30 48,818.87 4,977.85 3,259.76
2016-03-31 46,332.50 4,916.30 2,911.70
2015-12-31 45,874.87 4,831.02 5,545.35 5.73
2015-09-30 44,219.37 4,492.62 5,422.85 5.73
2015-06-30 43,235.37 4,269.92 5,323.25 5.73
2015-03-31 42,124.82 4,108.62 2,365.84
2014-12-31 40,277.48 3,886.46 4,573.89 4.00
2014-09-30 38,281.48 3,813.16 4,471.19 4.00
2014-06-30 35,726.38 3,755.96 4,382.69 4.00
2014-03-31 34,346.38 3,674.36 4,297.09 4.00
2013-12-31 33,510.65 3,469.95 3,768.44 2.83
2013-09-30 32,475.15 3,328.95 3,696.24 2.83
2013-06-30 31,589.43 3,084.13 3,606.28 2.83
2013-03-31 29,573.94 2,867.05 3,560.92 2.83
2012-12-31 28,319.66 2,853.93 3,294.46 7.27
2012-09-30 26,874.89 2,704.09 3,242.47 7.27

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Amara Raja Batteries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • 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 use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Amara Raja Batteries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Amara Raja Batteries has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

500008 Health

 How is Amara Raja Batteries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Amara Raja Batteries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Amara Raja Batteries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 37.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Amara Raja Batteries Company Filings, last reported 3 months ago.

BSE:500008 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 33,350.40 584.30 626.60
2018-12-31 31,274.60 584.30 921.00
2018-09-30 31,274.60 584.30 921.00
2018-06-30 29,373.90 635.30 1,182.50
2018-03-31 29,373.90 635.30 1,182.50
2017-12-31 27,333.10 635.30 3,876.00
2017-09-30 27,333.10 635.30 3,876.00
2017-06-30 25,930.70 724.70 2,895.20
2017-03-31 25,930.70 724.70 2,895.20
2016-12-31 23,808.70 717.90 3,809.30
2016-09-30 23,808.70 717.90 3,809.30
2016-06-30 21,016.42 741.38 1,502.58
2016-03-31 21,158.70 741.40 1,404.20
2015-12-31 19,442.30 741.40 2,203.90
2015-09-30 19,442.30 741.40 2,203.90
2015-06-30 16,995.71 759.47 2,221.71
2015-03-31 16,995.71 759.47 2,221.71
2014-12-31 15,689.60 935.20 2,311.70
2014-09-30 15,689.60 935.20 2,311.70
2014-06-30 13,627.01 856.96 2,945.67
2014-03-31 13,627.01 856.96 2,945.67
2013-12-31 12,522.00 773.10 3,133.00
2013-09-30 12,522.00 773.10 3,133.00
2013-06-30 10,598.14 881.03 4,107.90
2013-03-31 10,598.14 881.03 4,107.90
2012-12-31 9,696.63 918.99 3,996.63
2012-09-30 9,696.63 918.99 3,996.63
  • Amara Raja Batteries's level of debt (1.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (6.3% vs 1.8% today).
  • Debt is well covered by operating cash flow (926.1%, greater than 20% of total debt).
  • Amara Raja Batteries earns more interest than it pays, coverage of interest payments is not a concern.
Show me more healthy companies in the Electrical industry
X
Financial health checks
We assess Amara Raja Batteries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Amara Raja Batteries has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

500008 Dividends

 What is Amara Raja Batteries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.1%
Current annual income from Amara Raja Batteries dividends. Estimated to be 1.29% next year.
If you bought ₹2,000 of Amara Raja Batteries shares you are expected to receive ₹22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Amara Raja Batteries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.56%).
  • Amara Raja Batteries's dividend is below the markets top 25% of dividend payers in India (2.18%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:500008 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
India Electrical Industry Average Dividend Yield Market Cap Weighted Average of 42 Stocks 1.9%
India Market Average Dividend Yield Market Cap Weighted Average of 1447 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:500008 Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 8.48 2.00
2021-03-31 8.58 10.00
2020-03-31 7.96 10.00
BSE:500008 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-06-19 7.080 1.129
2018-11-09 4.150 0.589
2018-05-18 4.300 0.548
2018-02-12 4.000 0.487
2017-11-09 4.000 0.495
2017-05-24 4.250 0.542
2016-03-15 4.250 0.468
2015-05-29 3.610 0.402
2014-05-28 3.230 0.490
2013-05-14 2.520 0.811
2012-08-22 1.890 0.764
2011-05-19 1.300 1.062
2011-05-16 1.300 1.265
2010-05-19 1.450 1.568
2009-06-01 0.400 0.587

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Amara Raja Batteries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).
Show me more dividend paying companies in the Electrical industry
X
Income/ dividend checks
We assess Amara Raja Batteries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Amara Raja Batteries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Amara Raja Batteries has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

500008 Management

 What is the CEO of Amara Raja Batteries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
S. Vijayanand
COMPENSATION ₹20,200,000
TENURE AS CEO 2.3 years
CEO Bio

Mr. S. Vijayanand has been the Chief Executive Officer at Amara Raja Batteries Limited since April 1, 2017.

CEO Compensation
  • S.'s compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • S.'s remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure of the Amara Raja Batteries management team in years:

2.7
Average Tenure
  • The tenure for the Amara Raja Batteries management team is about average.
Management Team

S. Vijayanand

TITLE
Chief Executive Officer
COMPENSATION
₹20M
TENURE
2.3 yrs

Jay Galla

TITLE
Vice Chairman & MD
COMPENSATION
₹397M
AGE
49

Y. Babu

TITLE
Chief Financial Officer
COMPENSATION
₹4M
TENURE
0.4 yrs

M. Rajaram

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹7M
AGE
73
TENURE
6.1 yrs

G. Mohan

TITLE
Head of Operations

M. Jagadish

TITLE
Head of Technology

Kishore Hirani

TITLE
Chief Information Officer
TENURE
3.2 yrs

B. Jaikrishna

TITLE
President of HR & New Business Development

- Satyasunita

TITLE
Head of Marketing Services

Kalyan Suresh

TITLE
President of Finance
Board of Directors Tenure

Average tenure and age of the Amara Raja Batteries board of directors in years:

10.9
Average Tenure
49
Average Age
  • The average tenure for the Amara Raja Batteries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Ramachandra Galla

TITLE
Non-Executive Chairman
COMPENSATION
₹238M
AGE
81
TENURE
13.8 yrs

Jay Galla

TITLE
Vice Chairman & MD
COMPENSATION
₹397M
AGE
49

Nagarjun Valluripalli

TITLE
Non-Executive Independent Director
COMPENSATION
₹700K
AGE
51
TENURE
13.6 yrs

T. Narayanaswamy

TITLE
Non-Executive Independent Director
COMPENSATION
₹600K
AGE
42
TENURE
10.1 yrs

N. Sri Raju

TITLE
Non-Executive Independent Director
COMPENSATION
₹700K
AGE
46
TENURE
10.9 yrs

Bhairavi Jani

TITLE
Non-Executive Independent Director
COMPENSATION
₹600K
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Amara Raja Batteries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Amara Raja Batteries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

500008 News

Simply Wall St News

500008 Company Info

Description

Amara Raja Batteries Limited manufactures and sells lead-acid storage batteries for industrial and automotive applications in India. It provides installation, commissioning, and maintenance services; and exports its products to various countries in the Indian Ocean Rim. The company also offers its batteries under the Amaron, PowerZone, Power Stack, AmaronVolt, and Quanta brands. It supplies its batteries to various customer groups, such as telecom, railways, power control, solar, and UPS; and automobile OEMs, replacement markets, and private label customers. The company was founded in 1985 and is based in Hyderabad, India.

Details
Name: Amara Raja Batteries Limited
500008
Exchange: BSE
Founded: 1985
₹109,943,465,625
170,812,500
Website: http://www.amararaja.co.in
Address: Amara Raja Batteries Limited
Terminal A,
1-18/1/AMR/NR,
Hyderabad,
Andhra Pradesh, 500032,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500008 Equity Shares Mumbai Stock Exchange IN INR 04. Jul 2001
NSEI AMARAJABAT Equity Shares National Stock Exchange of India IN INR 04. Jul 2001
Number of employees
Current staff
Staff numbers
7,541
Amara Raja Batteries employees.
Industry
Electrical Components and Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 12:37
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/13
Last earnings filing: 2019/06/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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