Company Introduction
Amara Raja Energy & Mobility is a well-known Indian company in the energy storage and battery manufacturing space.
The company makes automotive batteries, industrial batteries, and advanced energy solutions. With rising demand from EVs, renewable energy, and power backup systems, the business is gradually moving from traditional batteries to advanced mobility and energy storage solutions.
Its strong brand name and diversified product portfolio make it an established player in the battery sector.
Business Visibility and Growth Outlook
Amara Raja is focusing on future-ready technologies, including lithium-ion batteries and energy storage systems.
As EV adoption increases in India, battery demand is expected to remain strong in the long term. Because of this, the market views this stock not just as a short-term opportunity, but as a long-term energy transition story.
Financial Performance
The company’s financial performance shows steady improvement over the last few years.
Profit Trend
| Financial Year | Net Profit (₹ crore) |
|---|---|
| FY21 | ~647 |
| FY22 | ~513 |
| FY23 | ~731 |
| FY24 | ~934 |
| FY25 | ~945 |
After a dip in FY22, the company showed a strong recovery. From FY22 to FY25, profit increased by around 84%, showing improving business stability.
Balance Sheet Strength
- Net Worth:
FY21: ₹7,237 crore → FY25: ₹12,962 crore - Debt to Equity: 0.04 (very low debt)
This indicates a strong balance sheet and healthy internal growth.
Share Price Performance
Share price performance looks different across timeframes.
- Last 6 months: -4% (short-term pressure)
- Last 1 year: ~23% (correction due to profit booking and sector rotation)
Long-Term Performance
- Last 5 years: 16,500% return
This places the stock in the multi-bagger category, which is why long-term investors continue to track it closely despite recent corrections.
Valuation and Overall View
- Market Capitalization: ₹16,649 crore
- P/E Ratio: 18 (below industry average)
- Dividend Yield: 1.15%
At current levels, valuations look reasonable. The dividend also adds stability for long-term investors.
Our View
In our view, short-term volatility may continue, but the company’s low debt, strong balance sheet, and exposure to the energy transition theme support the long-term outlook.
If execution remains steady, this stock can stay on investors’ radar for the long run.
5-Year Share Price Outlook
| Year | Expected Range (₹) |
|---|---|
| 2026 | 1,050 – 1,150 |
| 2027 | 1,200 – 1,350 |
| 2028 | 1,400 – 1,600 |
| 2029 | 1,650 – 1,900 |
| 2030 | 2,000 – 2,300 |
These targets depend on EV adoption, battery demand growth, and consistent business execution.
Read More: Upcoming IPO 2026: ये 10 बड़े IPOs शेयर बाजार में मचा सकते हैं बड़ा धमाका
Disclaimer
This article is for information and educational purposes only. It is not investment advice. Stock market investments are subject to risk. Please consult your financial advisor before making any investment decisions.
Sumit Ghatala is a stock market researcher and financial content writer with over 8 years of experience tracking Indian equity markets, corporate earnings, and sectoral trends. He focuses on analysing company fundamentals, quarterly results, and broader market movements to provide readers with clear and structured insights.
Sumit’s work is aimed at simplifying complex market data and helping retail investors understand risks, opportunities, and long-term perspectives through balanced and reader-friendly analysis.