Amara Raja Batteries Ltd Stock Analysis

BSE: 500008 | NSE: AMARAJABAT | Batteries | Mid Cap

BSE Share Price Jan 27, 18:01
598.95 -7.85 (-1.29%)

DeciZen - Make an Informed Decision on Amara Raja Batteries

Overall Rating
See How?

1. Quality

2. Valuation

Somewhat Undervalued
P/E P/S EV/EBITDA

3. Price Trend

FAQ's

1. Is Amara Raja Batteries Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Amara Raja Batteries Ltd is a good quality company.

2. Is Amara Raja Batteries Ltd undervalued or overvalued?

The key valuation ratios of Amara Raja Batteries Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Amara Raja Batteries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Amara Raja Batteries Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Amara Raja Batteries:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Amara Raja Batteries Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 25.1%27.8%27.9%25%24.6%19.6%16.2%15%18.6%16.1%-
Value Creation Index 0.81.01.10.90.80.50.20.10.40.2-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 2,3642,9593,4374,2114,6185,3176,0596,7936,8397,1508,213
YoY Gr. Rt. %-25.1%16.2%22.5%9.7%15.2%14%12.1%0.7%4.5%-
Adj EPS 12.116.721.223.628.327.626.727.738.13738.1
YoY Gr. Rt. %-38.5%26.4%11.4%20.3%-2.8%-3.3%4%37.5%-3%-
BVPS (₹) 48.262.179.899.5123.9151.8172195.3214246.5256.1
Adj Net Profit 206286361402484471455473651631651
Cash Flow from Ops. 2983352793955555533225411,177802-
Debt/CF from Ops. 0.30.30.30.20.10.10.20.100-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 13.1%9.1%5.7%4.5%
Adj EPS 13.2%5.5%11.5%-3%
BVPS 19.914.812.815.2
Share Price 19.3% -7.9% -7.8% -37.4%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 28.130.429.826.325.42016.515.118.616.115.2
Op. Profit Mgn % 14.415.216.216.717.91614.614.116.115.613.9
Net Profit Mgn % 8.79.710.59.610.58.97.579.58.87.9
Debt to Equity 0.10.10.100000000
Working Cap Days 1008885879287106117117117118
Cash Conv. Cycle 6553534947485965616259

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 11.52%

Sales growth is good in last 4 quarters at 31.48%

Return on Equity has declined versus last 3 years average to 15.20%

Sales growth has been subdued in last 3 years 5.67%

Latest Financials - Amara Raja Batteries Ltd.

Standalone Consolidated
TTM EPS (₹) 38.1 38.1
TTM Sales (₹ Cr.) 8,213 8,213
BVPS (₹.) 256.1 256.1
Reserves (₹ Cr.) 4,357 4,358
P/BV 2.37 2.37
PE 15.93 15.91
From the Market
52 Week Low / High (₹) 584.45 / 1009.20
All Time Low / High (₹) 1.67 / 1132.00
Market Cap (₹ Cr.) 10,365
Equity (₹ Cr.) 17.1
Face Value (₹) 1
Industry PE 17.6

Management X-Ray of Amara Raja Batteries :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *5.935.935.930.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Amara Raja Batteries Ltd

Amara Raja Batteries (ARBL), the flagship company of the Amara Raja Group, is a leading manufacturer of automotive batteries under the brands - Amaron and PowerZone, which are distributed through a large pan-India sales & service retail network. The company's Industrial and Automotive batteries are exported to several countries across the globe. It is the first company to manufacture Valve Regulated Lead-Acid (VRLA) batteries in India. They are engineered to provide the performance reliability and consistency over the life of the product and they offer a long battery life with minimal maintenance. In India, the company is the preferred supplier to major telecom service providers, Telecom equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways and to Power, Oil & Gas among other industry segments. 

The company’s manufacturing facilities are equipped with state-of-the-art machines and technology. Each plant is designed to improve shop floor efficiencies by adopting globally recognized concepts such as Lean Six Sigma, 5S and Quality Circle projects. The manufacturing facilities have imbibed low-cost automation to reduce operator fatigue which helps in improving product quality and person productivity. Its World-Class integrated manufacturing facilities are constantly evolving and are ever ready to adopt the latest technological advancements. Its in-house R & D centre, which is recognized by Government of India, ensures constant innovation and best in class products.

Business area of the company

The company is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry. Amara Raja Automotive Batteries offers a wide range of battery solutions in Passenger Vehicles, Three Wheelers, Two Wheelers, Commercial Vehicles, Farm Vehicles, and Home UPS/Inverters. Besides, Amara Raja Industrial Batteries offers a broad range of battery solutions in segments like UPS, Telecom, Railways, Defence and Motive.

Products

  • PowerStack
  • Amaron Sleek 
  • Amaron Volt 
  • Genpro 
  • Amaron Quanta
  • Amaron Quanta-HWS 
  • Amaron Quanta -HUPS
  • Amaron Brute
  • Amaron Solar
  • Amaron Quanta S-XEL

Awards and Accolades

  • 2013: Received the Gold Award for support in the SME category in the event organized by Indus Towers.
  • 2014: Presented with the Silver Award for support in the category 'Infra - Equipment’ in event organized by Indus Towers.
  • 2016: Bagged recognition for being 'Telecom Infra Leader' in the Power Solutions Category for the year 2016 at the 24th Annual CyberMedia ICT Awards.
  • 2016: Received the Gold Award for support in the category 'Infra-Equipment' in event organized by Indus Towers.
  • 2017: Received an award from Tata Motors and this award is in recognition for its excellence in the field of QCDM parameters (Excellence in Quality, Delivery, and Relationship Building).
  • 2017: Bagged 'India's Most Promising Company of The Year 2016-2017' award during the 12th CNBC TV18 India Business Leader Awards that was held in Delhi.
  • 2017: Received awards for 'Consistent High-Quality Performance' and 'Design & Development' from Maruti Suzuki India.
  • 2017: Received Overall Performance Award – Bosch.
  • 2017: Amara Raja Group Small Battery Division has won the First Runner Award in Eleventh CII Six Sigma National Conference and Competition under the 'Manufacturing Industry (Discrete and Assembly Line)' category.
  • 2018: Received first prize in AP Green awards 2017 under Industries (Private) category from A.P. Greening and Beautification Corporation, Government of Andhra Pradesh.
  • 2018: Presented with Gold Award for support in the category 'Infra Equipment- Supply in the event organized by Indus Towers.
  • 2018: Received an award for 'High-Quality Performance' from Bajaj Auto.
  • 2018: Received an award for 'Best Vendor Rating and System Audit' from Maruti Suzuki India.
  • 2018: Secured second place in 'Construction Safety' in a competition held during the quarterly award function in Maharashtra Circle.

History and Milestones

  • 1995: Incorporation of the company.
  • 1989: Inks technology agreement with GNB Batteries Inc.
  • 1990: Introduced VRLA technology in India.
  • 1991: Goes public.
  • 1991: Launched VRLA batteries for telecom application.
  • 1992: Commenced production of VRLA batteries.
  • 1993: Launched batteries for Indian Railways.
  • 1995: First export shipment of Industrial Batteries by company.
  • 1996: Launched VRLA batteries in Indian Railways for Rolling Stack Application.
  • 1997: Received ISO certification.
  • 1997: Diversified into automotive batteries and signed JV with Johnson Controls Inc.
  • 1998: Received QS-9000 certification.
  • 1998: Supply of first batch of automotive batteries to Ford India.
  • 2000: Launched Brand AMARON Automotive batteries.
  • 2001: Received ISO 14001 certification.
  • 2001: Corporate logo launched.
  • 2001: Inauguration of Automotive battery plant.
  • 2002: Industrial Batteries division (IBD) of company launched Quanta Branded UPS Batteries.
  • 2002: Automotive Batteries division (ABD) of company launched Amaron Hi Way and Amaron Harvest batteries.
  • 2004: Automotive Batteries division (ABD) of company launched Amaron PRO, Amaron GO, Amaron FRESH and Amaron SHIELD batteries.
  • 2007: Launched Brand Powerzone Automotive Batteries.
  • 2007: Inaugurated 2 Wheeler battery plant.
  • 2008: Launched Amaron Probike Rider, the first AGM batteries for two wheelers.
  • 2010: Unveiled new Amaron logo.
  • 2010: Launched Amaron Sleek and Amaron Volt brands for Industrial applications.
  • 2012: QRS series introduced for Telecom to aid efforts in reduction of diesel consumption.
  • 2012: Launched Amaron Current HUPS Tubular Batteries.
  • 2014: Inaugurated world’s largest integrated Medium Valve Regulated Lead Acid (MVRLA) battery plant at ARGC, Nunegundlapalli, Chittoor, Andhra Pradesh, India.
  • 2016: Inaugurated Tubular battery plant.
  • 2017: Launch of Amaron Brute brand for Motive Power by Industrial Batteries Division.
  • 2017: Inaugurated India’s largest and most advanced two wheeler battery plant at Amara Raja Growth Corridor (ARGC).
  • 2018: Incorporation of wholly owned subsidiary in Sharjah Airport International Free Zone (SAIF Zone).
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