Amara Raja Batteries (BSE:500008) - Share price, News & Analysis

500008 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	5/6

500008 Stock Overview

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

Rewards

PE ratio (15x) is below the Indian market (20.5x)

Earnings have grown 9.1% per year over the past 5 years

Risk Analysis

Dividend of 1.89% is not well covered by earnings

Amara Raja Batteries Competitors

ZHEJIANG NARADA POWER SOURCE

SZSE:300068

CN¥11.1b

Exide Industries

BSE:500086

₹122.4b

Leoch International Technology

SEHK:842

HK$882.6m

Price History & Performance

Summary of all time highs, changes and price drops for Amara Raja Batteries
Historical stock prices
Current Share Price	₹529.10
52 Week High	₹804.05
52 Week Low	₹493.70
Beta	0.71
1 Month Change	-7.31%
3 Month Change	-11.25%
1 Year Change	-33.17%
3 Year Change	-17.05%
5 Year Change	-38.95%
Change since IPO	9,746.91%

Shareholder Returns

	500008	IN Electrical	IN Market
7D	4.4%	2.5%	3.4%
1Y	-33.2%	24.6%	9.6%

Return vs Industry: 500008 underperformed the Indian Electrical industry which returned 24.6% over the past year.

Return vs Market: 500008 underperformed the Indian Market which returned 9.6% over the past year.

Price Volatility

Is 500008's price volatile compared to industry and market?
500008 volatility
500008 Average Weekly Movement	4.8%
Electrical Industry Average Movement	7.2%
Market Average Movement	7.3%
10% most volatile stocks in IN Market	10.0%
10% least volatile stocks in IN Market	4.8%

Stable Share Price: 500008 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 500008's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1985	10,605	Jay Galla	https://www.amararaja.com

Amara Raja Batteries Limited manufactures and sells lead-acid storage batteries for industrial and automotive applications in India. The company also provides installation, commissioning, and maintenance services. It sells its batteries under the Amaron, PowerZone, Power Stack, AmaronVolt, and Quanta brands.

Amara Raja Batteries Fundamentals Summary

How do Amara Raja Batteries's earnings and revenue compare to its market cap?
500008 fundamental statistics
Market Cap	₹90.38b
Earnings (TTM)	₹6.03b
Revenue (TTM)	₹86.19b

15.0x

P/E Ratio

1.0x

P/S Ratio

Is 500008 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
500008 income statement (TTM)
Revenue	₹0
Cost of Revenue	₹0
Gross Profit	₹0
Other Expenses	₹0
Earnings	₹0

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	35.31
Gross Margin	30.58%
Net Profit Margin	7.00%
Debt/Equity Ratio	2.2%

How did 500008 perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

28%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

14.99x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 500008 (₹529.1) is trading above our estimate of fair value (₹112.37)

Significantly Below Fair Value: 500008 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 500008 is good value based on its PE Ratio (15x) compared to the Indian Electrical industry average (19.3x).

PE vs Market: 500008 is good value based on its PE Ratio (15x) compared to the Indian market (20.5x).

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 (2.1x) compared to the IN Electrical industry average (1.5x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.4%

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.

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 500008 has high quality earnings.

Growing Profit Margin: 500008's current net profit margins (7%) are lower than last year (9%).

Past Earnings Growth Analysis

Earnings Trend: 500008's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: 500008's earnings growth over the past year (1.4%) is below its 5-year average (9.1% per year).

Earnings vs Industry: 500008 earnings growth over the past year (1.4%) underperformed the Electrical industry 52%.

Return on Equity

High ROE: 500008's Return on Equity (13.8%) is considered low.

Financial Health

How is Amara Raja Batteries's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 500008's short term assets (₹29.7B) exceed its short term liabilities (₹14.8B).

Long Term Liabilities: 500008's short term assets (₹29.7B) exceed its long term liabilities (₹2.7B).

Debt to Equity History and Analysis

Debt Level: 500008 has more cash than its total debt.

Reducing Debt: 500008's debt to equity ratio has reduced from 3% to 2.2% over the past 5 years.

Debt Coverage: 500008's debt is well covered by operating cash flow (663.1%).

Interest Coverage: 500008 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.89%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 500008's dividend (1.89%) is higher than the bottom 25% of dividend payers in the Indian market (0.35%).

High Dividend: 500008's dividend (1.89%) is in the top 25% of dividend payers in the Indian market (1.59%)

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.3%), 500008's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (329.6%), 500008's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

1.1yrs

Average management tenure

CEO

Jay Galla (51 yo)

0.92

Tenure

₹473,500,000

Compensation

Mr. Jayadev Galla, also known as Jay, has been the Managing Director at Amara Raja Batteries Limited since August 2003 and serves as its Chief Executive Officer since June 12, 2021. He Co-Founded Amara Raj...

CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD6.09M) is above average for companies of similar size in the Indian market ($USD344.63K).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 500008's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.

Board Members

Experienced Board: 500008's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31