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Amara Raja Batteries (BSE:500008)

INE885A01032

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

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Amara Raja Batteries stock research in summary

amararajabatteries.com

ANALYSIS: With an Obermatt Combined Rank of 57 (better than 57% compared with investment alternatives), Amara Raja Batteries (Electr. Components & Equipment, India) shares have above-average financial characteristics compared with similar stocks. Shares of Amara Raja Batteries are a good value (attractively priced) with a consolidated Value Rank of 51 (better than 51% of alternatives), are safely financed (Safety Rank of 72, which means low debt burdens), but show below-average growth (Growth Rank of 49). ...read more

RECOMMENDATION: A Combined Rank of 57, is a buy recommendation based on Amara Raja Batteries's financial characteristics. As the company Amara Raja Batteries's key financial metrics exhibit good value (Obermatt Value Rank of 51) but low growth (Obermatt Growth Rank of 49) while being safely financed (Obermatt Safety Rank of 72), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 51% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	51
Growth Rank	49
Safety Rank	72
Combined Rank	57

Country	India
Industry	Electr. Components & Equipment
Index	Independent Boards Growth Markets
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

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Research History: Amara Raja Batteries

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	91	53	54	51
GROWTH
GROWTH	15	43	51	49
SAFETY
SAFETY	74	83	81	72
SENTIMENT
SENTIMENT	n/a	3	55	^new
360° VIEW
360° VIEW	n/a	27	76	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Amara Raja Batteries is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	91	53	54	51
GROWTH
GROWTH	15	43	51	49
SAFETY
SAFETY	74	83	81	72
COMBINED
COMBINED	96	73	75	57

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Amara Raja Batteries the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 51 (better than 51% compared with alternatives), Amara Raja Batteries shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Amara Raja Batteries. Price-to-Sales (P/S) is 53, which means that the stock price compared with what market professionals expect for future sales is lower than for 53% of comparable companies, indicating a good value regarding Amara Raja Batteries's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 64% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 50. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 46% of all competitors have even lower dividend yields than Amara Raja Batteries (a Dividend Yield Rank of 46). 54% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 51, is a buy recommendation based on Amara Raja Batteries's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	73	64	65	53
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	85	70	69	64
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	58	57	56	50
DIVIDEND YIELD
DIVIDEND YIELD	84	49	49	46
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	91	53	54	51

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Amara Raja Batteries; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 49 (better than 49% compared with alternatives), Amara Raja Batteries shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Amara Raja Batteries. Sales Growth has a below market rank of 34, which means that, currently, professionals expect the company to grow less than 66% of its competitors. The same is valid for Capital Growth, with a rank of 22, and Profit Growth, with a rank of 49. Currently, professionals expect the company to grow its profits less than 51% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 83, which means that the stock returns have recently been above 83% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 49, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Amara Raja Batteries, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	54	57	42	34
PROFIT GROWTH
PROFIT GROWTH	n/a	49	52	49
CAPITAL GROWTH
CAPITAL GROWTH	n/a	63	43	22
STOCK RETURNS
STOCK RETURNS	6	5	51	83
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	15	43	51	49

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Amara Raja Batteries.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 72 (better than 72% compared with alternatives), the company Amara Raja Batteries has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Amara Raja Batteries is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Amara Raja Batteries. Leverage is at a rank of 80, meaning the company has a below-average debt-to-equity ratio. It has less debt than 80% of its competitors. Liquidity is also good at a rank of 82, meaning the company generates more profit to service its debt than 82% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 33, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 67% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 72 (better than 72% compared with alternatives), Amara Raja Batteries has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Amara Raja Batteries. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Amara Raja Batteries and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	74	80	76	80
REFINANCING
REFINANCING	10	50	56	33
LIQUIDITY
LIQUIDITY	100	94	81	82
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	74	83	81	72

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Amara Raja Batteries and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	24	32	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	13	79	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	39	92	^new
MARKET PULSE
MARKET PULSE	n/a	52	19	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	3	55	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Amara Raja Batteries.
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