Amara Raja Energy Stock Price Analysis and Quick Research Report. Is Amara Raja Energy an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Amara Raja Energy. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Amara Raja Energy has a PE ratio of 20.6288136102678 which is high and comparatively overvalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Amara Raja Energy has ROA of 10.2394% which is a bad sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Amara Raja Energy has a Current ratio of 1.6231.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Amara Raja Energy has a ROE of 13.627%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Amara Raja Energy has a Debt to Equity ratio of 0.0196 which means that the company has low proportion of debt in its capital.

• Sales growth: Amara Raja Energy has reported revenue growth of 10.1648% which is poor in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Amara Raja Energy for the current financial year is 13.1199873598234%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Amara Raja Energy is Rs 10.5 and the yield is 1.0189%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Amara Raja Energy is Rs 49.9035. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Amara Raja Energy in Ticker for free. Also, one can get the intrinsic value of Amara Raja Energy by using Valuation Calculators, which are available with a Finology ONE subscription. 

Amara Raja Energy FAQs

Q1. What is Amara Raja Energy share price today?
Ans: The current share price of Amara Raja Energy is Rs 1029.45.

Q2. What is the market capitalisation of Amara Raja Energy?
Ans: Amara Raja Energy has a market capitalisation of Rs 18841.54609698 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Amara Raja Energy?
Ans: The PE ratio of Amara Raja Energy is 20.6288136102678 and the P/B ratio of Amara Raja Energy is 2.48822537286521, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Amara Raja Energy share?
Ans: The 52-week high share price of Amara Raja Energy is Rs 1444, and the 52-week low share price of Amara Raja Energy is Rs 832.3.

Q5. Does Amara Raja Energy pay dividends?
Ans: Currently, Amara Raja Energy pays dividends. Dividend yield of Amara Raja Energy is around 1.0189%.

Q6. What are the face value and book value of Amara Raja Energy shares?
Ans: The face value of Amara Raja Energy shares is Rs 1, while the book value per share of Amara Raja Energy is around Rs 413.7286. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Amara Raja Energy?
Ans: Amara Raja Energy has a total debt of Rs 144.52 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Amara Raja Energy?
Ans: The ROE of Amara Raja Energy is 13.627% and ROCE of Amara Raja Energy is 18.7021%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is Amara Raja Energy a good buy for the long term?
Ans: The Amara Raja Energy long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is Amara Raja Energy undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Amara Raja Energy appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check Amara Raja Energy’s financials?
Ans: You can review Amara Raja Energy’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.