Case study

ARE&M

Amara Raja Batteries

Mixed signals
0Score

Amara Raja Batteries (ARE&M) Stock Analysis & Case Study

Is ARE&M a good buy? The data-driven verdict.

Amara Raja Batteries (ARE&M) trades at ₹857,on the numbers it mixed signals, a Downstox Snapshot Score of 49/100.

On the numbers, Amara Raja Batteries (ARE&M) mixed signals, a Downstox Snapshot Score of 49/100, weighing fairly valued at 22.2× earnings, ROE of 9.2%. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

ARE&M fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹15,695 Cr
Current price
₹857
P/E ratio
22.2×
P/B ratio
1.94×
Book value
₹442
Dividend yield
1.24%
ROCE
12.3%
ROE
9.2%
Piotroski F-Score
4/9

Is ARE&M overvalued? ARE&M P/E vs its sector

ARE&M's P/E of 22.2× sits above the sector peer median of 15.9×, so on earnings it screens richer than peers, while its 1.24% dividend yield is below the peer median of 1.65%.

ARE&M P/E
22.2×
Peer median P/E
15.9×
ARE&M div yield
1.24%
Peer median yield
1.65%

The bull case for ARE&M

  • A 22.2× P/E sits in the fair-value band, neither cheap nor stretched.

The bear case & risks

  • Return on equity is a soft 9.2%, capital efficiency trails higher-quality peers.

ARE&M Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. ARE&M scores 4/9,mixed financial health.

ARE&M MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy ARE&M with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
UpstoxCHEAPEST31.1%3.2×
ZerodhaCHEAPEST31.1%3.2×
DhanCHEAPEST31.1%3.2×

Compare every broker on the ARE&M MTF page.

ARE&M vs peers,sector comparison

StockP/EDiv yieldMarket cap
ARE&M (this stock)22.2×1.24%₹15,695 Cr
RELIANCE23.1×0.45%₹17.95L Cr
TCS14.7×3.01%₹7.69L Cr
HDFCBANK15.9×1.65%₹12.11L Cr
INFY14.4×4.51%₹4.32L Cr
ICICIBANK17.9×0.81%₹9.70L Cr
SBIN11.5×1.67%₹9.61L Cr

About Amara Raja Batteries: sector, index & market-cap context

Amara Raja Batteries (ARE&M) is a small-cap NSE-listed company, and a constituent of the Nifty 200 index group, with a market capitalisation of ₹15,695 Cr. See more Nifty 200 stocks.

How the ARE&M Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Amara Raja Batteries's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

ARE&M analysis, FAQs

Is Amara Raja Batteries (ARE&M) a good buy?

On the numbers, Amara Raja Batteries (ARE&M) mixed signals, a Downstox Snapshot Score of 49/100, weighing fairly valued at 22.2× earnings, ROE of 9.2%. This is a data snapshot for research, not investment advice.

Is ARE&M overvalued or undervalued?

ARE&M trades at 22.2× earnings versus a peer median of 15.9×, so it screens richer than its sector peers.

What is the bull case for ARE&M?

A 22.2× P/E sits in the fair-value band, neither cheap nor stretched.

What are the risks in ARE&M?

Return on equity is a soft 9.2%, capital efficiency trails higher-quality peers.

More on ARE&M