BSE:500008

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Amara Raja Batteries

Executive Summary

Amara Raja Batteries Limited manufactures and sells lead-acid storage batteries for industrial and automotive applications in India.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Amara Raja Batteries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500008's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.6%

500008

0.3%

IN Electrical

1.3%

IN Market


1 Year Return

7.1%

500008

-28.4%

IN Electrical

-10.7%

IN Market

Return vs Industry: 500008 exceeded the Indian Electrical industry which returned -28.4% over the past year.

Return vs Market: 500008 exceeded the Indian Market which returned -10.7% over the past year.


Shareholder returns

500008IndustryMarket
7 Day6.6%0.3%1.3%
30 Day6.1%9.2%7.0%
90 Day50.0%29.8%29.4%
1 Year9.9%7.1%-27.2%-28.4%-9.0%-10.7%
3 Year-16.4%-19.6%-23.9%-26.7%0.08%-5.2%
5 Year-15.1%-19.0%-30.8%-34.4%23.3%12.0%

Price Volatility Vs. Market

How volatile is Amara Raja Batteries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Amara Raja Batteries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500008 (₹690.15) is trading below our estimate of fair value (₹3045.96)

Significantly Below Fair Value: 500008 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500008 is poor value based on its PE Ratio (17.8x) compared to the Electrical industry average (14.5x).

PE vs Market: 500008 is poor value based on its PE Ratio (17.8x) compared to the Indian market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500008's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500008 is overvalued based on its PB Ratio (3.2x) compared to the IN Electrical industry average (0.8x).


Next Steps

Future Growth

How is Amara Raja Batteries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.7%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Amara Raja Batteries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500008 has high quality earnings.

Growing Profit Margin: 500008's current net profit margins (9.7%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: 500008's earnings have grown by 5.9% per year over the past 5 years.

Accelerating Growth: 500008's earnings growth over the past year (36.7%) exceeds its 5-year average (5.9% per year).

Earnings vs Industry: 500008 earnings growth over the past year (36.7%) exceeded the Electrical industry -1.5%.


Return on Equity

High ROE: 500008's Return on Equity (18.1%) is considered low.


Next Steps

Financial Health

How is Amara Raja Batteries's financial position?


Financial Position Analysis

Short Term Liabilities: 500008's short term assets (₹22.2B) exceed its short term liabilities (₹11.0B).

Long Term Liabilities: 500008's short term assets (₹22.2B) exceed its long term liabilities (₹2.4B).


Debt to Equity History and Analysis

Debt Level: 500008's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: 500008's debt to equity ratio has reduced from 4.5% to 0.9% over the past 5 years.

Debt Coverage: 500008's debt is well covered by operating cash flow (3426.2%).

Interest Coverage: 500008's interest payments on its debt are well covered by EBIT (65.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500008's dividend (1.59%) is higher than the bottom 25% of dividend payers in the Indian market (0.68%).

High Dividend: 500008's dividend (1.59%) is low compared to the top 25% of dividend payers in the Indian market (2.88%).


Stability and Growth of Payments

Stable Dividend: 500008's dividends per share have been stable in the past 10 years.

Growing Dividend: 500008's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.4%), 500008's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

S. Vijayanand

3.25yrs

Tenure

₹20,200,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: S.'s total compensation ($USD270.08K) is below average for companies of similar size in the Indian market ($USD643.72K).

Compensation vs Earnings: S.'s compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
S. Vijayanand
Chief Executive Officer3.25yrs₹20.20mno data
Y. Babu
Chief Financial Officer1.42yrs₹4.39mno data
M. Rajaram
Compliance Officer & Company Secretary7.08yrs₹6.50mno data
Jayadev Galla
Director & MDno data₹396.90mno data
M. Jagadish
Head of Technologyno datano datano data
Kishore Hirani
Chief Information Officer4.17yrsno datano data
- Satyasunita
Head of Marketing Servicesno datano datano data
B. Jaikrishna
President of HR & New Business Development6.25yrsno datano data
Srinivasa Ganga
Chief Marketing Officer of Industrial Battery Division no datano datano data
Rajesh Jindal
Chief Marketing Officer of Automotive Battery Division no datano datano data

4.2yrs

Average Tenure

Experienced Management: 500008's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jayadev Galla
Director & MDno data₹396.90mno data
Nagarjun Valluripalli
Non-Executive Independent Director14.58yrs₹700.00kno data
Ramachandra Galla
Non-Executive Chairmanno data₹238.20mno data
Ramadevi Gourineni
Additional Director0.42yrno datano data
T. Narayanaswamy
Non-Executive Independent Director11.08yrs₹600.00kno data
N. Sri Raju
Independent Chairman of the Board0.50yr₹700.00kno data
Bhairavi Jani
Non-Executive Independent Director5.33yrs₹600.00kno data

5.3yrs

Average Tenure

50yo

Average Age

Experienced Board: 500008's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Amara Raja Batteries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amara Raja Batteries Limited
  • Ticker: 500008
  • Exchange: BSE
  • Founded: 1985
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: ₹116.853b
  • Shares outstanding: 170.81m
  • Website: https://www.amararaja.com

Number of Employees


Location

  • Amara Raja Batteries Limited
  • Terminal A
  • 1-18/1/AMR/NR
  • Hyderabad
  • Andhra Pradesh
  • 500032
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500008BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2001
AMARAJABATNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2001

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 12:37
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.