Amara Raja Batteries
Market Cap
₹116.9b
Last Updated
2020/07/03 12:37 UTC
Data Sources
Company Financials
Executive Summary
Amara Raja Batteries Limited manufactures and sells lead-acid storage batteries for industrial and automotive applications in India.
Rewards
Risk Analysis
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
| 500008 | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.6% | 0.3% | 1.3% |
| 30 Day | 6.1% | 9.2% | 7.0% |
| 90 Day | 50.0% | 29.8% | 29.4% |
| 1 Year | 9.9%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
- Check out Amara Raja Batteries's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
- Amara Raja Batteries competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Capital Goods industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 3.25yrs | ₹20.20m | no data | |
| Chief Financial Officer | 1.42yrs | ₹4.39m | no data | |
| Compliance Officer & Company Secretary | 7.08yrs | ₹6.50m | no data | |
| Director & MD | no data | ₹396.90m | no data | |
| Head of Technology | no data | no data | no data | |
| Chief Information Officer | 4.17yrs | no data | no data | |
| Head of Marketing Services | no data | no data | no data | |
| President of HR & New Business Development | 6.25yrs | no data | no data | |
| Chief Marketing Officer of Industrial Battery Division | no data | no data | no data | |
| Chief Marketing Officer of Automotive Battery Division | no data | no data | no data |
4.2yrs
Average Tenure
Experienced Management: 500008's management team is considered experienced (4.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Director & MD | no data | ₹396.90m | no data | |
| Non-Executive Independent Director | 14.58yrs | ₹700.00k | no data | |
| Non-Executive Chairman | no data | ₹238.20m | no data | |
| Additional Director | 0.42yr | no data | no data | |
| Non-Executive Independent Director | 11.08yrs | ₹600.00k | no data | |
| Independent Chairman of the Board | 0.50yr | ₹700.00k | no data | |
| Non-Executive Independent Director | 5.33yrs | ₹600.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 500008 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jul 2001 |
| AMARAJABAT | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/03 12:37 |
| End of Day Share Price | 2020/07/03 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2020/03/31 |
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.