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Amara Raja Energy & Mobility Ltd
NSE:ARE&M

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Amara Raja Energy & Mobility Ltd
NSE:ARE&M
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Price: 913.3 INR 1.62% Market Closed
Market Cap: ₹167.2B

P/OCF

16.5
Current
18%
More Expensive
vs 3-y average of 14

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
16.5
=
Market Cap
₹154.7B
/
Operating Cash Flow
₹10.2B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
16.5
=
Market Cap
₹154.7B
/
Operating Cash Flow
₹10.2B

Valuation Scenarios

Amara Raja Energy & Mobility Ltd is trading above its 3-year average

If P/OCF returns to its 3-Year Average (14), the stock would be worth ₹776.22 (15% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-15%
Maximum Upside
+163%
Average Upside
44%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 16.5 ₹913.3
0%
3-Year Average 14 ₹776.22
-15%
5-Year Average 14.8 ₹822.76
-10%
Industry Average 43.2 ₹2 397.5
+163%
Country Average 23 ₹1 274.26
+40%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
IN
Amara Raja Energy & Mobility Ltd
NSE:ARE&M
167.1B INR 16.5 22.5
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
2T CNY 15.6 26.4
FR
Schneider Electric SE
PAR:SU
155.2B EUR 25.3 37.3
CH
Abb Ltd
SIX:ABBN
142B CHF 33.2 38.4
IE
Eaton Corporation PLC
NYSE:ETN
164.4B USD 36.8 40.2
US
Vertiv Holdings Co
NYSE:VRT
124.2B USD 48.2 79.7
US
Emerson Electric Co
NYSE:EMR
79.4B USD 26.3 34.4
KR
LG Energy Solution Ltd
KRX:373220
112.6T KRW 25.4 -104.9
JP
Fujikura Ltd
TSE:5803
10T JPY 103.1 69.4
US
AMETEK Inc
NYSE:AME
53.4B USD 29.6 36
FR
Legrand SA
PAR:LR
39.9B EUR 25.3 32.1

Market Distribution

In line with most companies in India
Percentile
36th
Based on 2 204 companies
36th percentile
16.5
Low
0.5 — 14
Typical Range
14 — 39.7
High
39.7 —
Distribution Statistics
India
Min 0.5
30th Percentile 14
Median 23
70th Percentile 39.7
Max 28 676

Amara Raja Energy & Mobility Ltd
Glance View

Amara Raja Energy & Mobility Ltd., a name synonymous with innovation and growth, emerged from its once humble beginnings in the verdant landscapes of Andhra Pradesh, India. Founded as part of the renowned Amara Raja Group, the company carved its niche in the highly competitive energy solutions sector. At the heart of its operations lies a robust manufacturing ecosystem producing advanced lead-acid batteries, catering to diverse industries such as automotive, telecom, and power utility. These power solutions are designed to fuel everything from electric vehicles, which are steering the transportation future, to industrial applications that demand reliable energy storage solutions. The company leverages its expertise in battery technology to ensure superior performance and sustainability, key factors that resonate well with its clientele, thereby ensuring a steady revenue stream. Driving the company forward is its visionary approach to integrating mobility solutions with renewable energy, acknowledging the global shift towards sustainable development. Amara Raja Energy & Mobility Ltd. has invested significantly in research and development, intent on shaping pioneering solutions like lithium-ion batteries to accommodate the electrification wave. This commitment not only fortifies its position in the existing markets but also allows it to explore and capitalize on new segments emerging from the green energy transition. Their comprehensive portfolio thus orchestrates a seamless blend of technological prowess and strategic foresight, sustaining a robust business model. Through its adept maneuvering across conventional and new-age energy solutions, the company continues to craft profitable ventures, securing both its future and its stakeholders' interests in a rapidly evolving energy landscape.

ARE&M Intrinsic Value
976.46 INR
Undervaluation 6%
Intrinsic Value
Price ₹913.3
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