auto
Amara Raja Energy & Mobility
ARE_AND_M · Nifty 50
₹855.25
Price 2026-06-17
At a Glance
Fundamental
75/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Amara Raja Energy & Mobility scores 75/100 on fundamentals (strong). Amara Raja Energy & Mobility: BROAD EXPANSION regime.
Fundamental Score: 75/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 9.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 9.63% is modest efficiency-driven and stable. Net margin of 5.8% × asset turnover of 1.17x × leverage of 1.4x.
What This Means
Net margin of 5.8% means the company keeps ₹5.8 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 1.17x means the company efficiently uses its assets to generate revenue. Leverage of 1.4x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
31.9%
Operating
8.2%
Net
5.8%
Gross margin 31.9% → operating margin 8.2% → net margin 5.8%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.4x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 24.2x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.2x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin negative at -1.7% — spending more than earning. Check capex cycle.
Peer Comparison
Amara Raja Energy & Mobility is compared against 10 peers in the auto sector.
Key Watchpoints
Breaks above ₹898 (+5%)
Trend reversal confirmation
Breaks below ₹812 (-5%)
Further downside risk
Auto sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
One-off items significantly inflating reported profit. Core earnings may be much lower.
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Special charges of ₹255K Cr. May indicate restructuring, impairment, or one-time costs.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Company not overvalued on revenue basis.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes