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Amara Raja Energy & MobilityNSE:ARE&M -1.56%98 Return-on-Tangible-Equity is 16.63% as of Mar. 2026, which is 6% above its 10-year median of 15.73. GuruFocus rates NSE:ARE&M with a GF Score™ of 98/100 and a GF Value™ of ₹1,073.10 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,972 Industrial Products companies, Amara Raja Energy & Mobility ranks better than 71.13% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Amara Raja Energy & Mobility's annualized net income for the quarter that ended in Mar. 2026 was ₹12,573 Mil. Amara Raja Energy & Mobility's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹75,608 Mil. Therefore, Amara Raja Energy & Mobility's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 16.63%.
The historical rank and industry rank for Amara Raja Energy & Mobility's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ARE&M'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.94 Med: 15.73 Max: 20.36
Current: 12.37
During the past 13 years, Amara Raja Energy & Mobility's highest Return-on-Tangible-Equity was 20.36%. The lowest was 11.94%. And the median was 15.73%.
NSE:ARE&M's Return-on-Tangible-Equity is ranked better than 71.13% of 2972
companies
in the Industrial Products industry
Industry Median: 6.72
vs NSE:ARE&M: 12.37
Amara Raja Energy & Mobility (NSE:ARE&M) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Amara Raja Energy & Mobility Return-on-Tangible-Equity Related Terms
Amara Raja Energy & Mobility Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Amara Raja Energy & Mobility Return-on-Tangible-Equity Chart
NSE:ARE&M vs VRT, BE: Return-on-Tangible-Equity Comparison
For the Electrical Equipment & Parts subindustry, Amara Raja Energy & Mobility's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Amara Raja Energy & Mobility Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Amara Raja Energy & Mobility's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Amara Raja Energy & Mobility's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 16.63% mean?
Amara Raja Energy & Mobility (NSE:ARE&M) has a Return-on-Tangible-Equity of 16.63% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Amara Raja Energy & Mobility and its competitors. This is near median its historical median of 15.73. Over the past decade, Amara Raja Energy & Mobility's Return-on-Tangible-Equity has ranged from 11.94 to 20.36. According to the industry distribution chart, Amara Raja Energy & Mobility ranks #858 out of 2972 companies in the Industrial Products industry, placing it in the top 28.9%.
Is Amara Raja Energy & Mobility's Return-on-Tangible-Equity too high?
Amara Raja Energy & Mobility's current Return-on-Tangible-Equity of 16.63% is near median its 10-year median of 15.73. Over the past 10 years, this metric has ranged from a low of 11.94 to a high of 20.36. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Amara Raja Energy & Mobility's value of 16.63% is 147.5% above this industry median. Based on the distribution chart, Amara Raja Energy & Mobility ranks #858 out of 2972 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Amara Raja Energy & Mobility has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Amara Raja Energy & Mobility's Return-on-Tangible-Equity compare to VRT and BE?
According to the Industrial Products industry distribution chart, Amara Raja Energy & Mobility ranks #858 out of 2972 companies for Return-on-Tangible-Equity. This puts Amara Raja Energy & Mobility in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.72. Amara Raja Energy & Mobility's value of 16.63% is 147.5% above this benchmark. Historically, Amara Raja Energy & Mobility's own Return-on-Tangible-Equity has ranged from 11.94 to 20.36 over the past decade. While the company's 10-year median is 15.73 vs. the industry median of 6.72, Amara Raja Energy & Mobility has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,972 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Amara Raja Energy & Mobility's current Return-on-Tangible-Equity of 16.63% is 147.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Amara Raja Energy & Mobility and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amara Raja Energy & Mobility's current Return-on-Tangible-Equity is 16.63%, which is near median its own 10-year median of 15.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amara Raja Energy & Mobility stock overvalued right now?
Based on GuruFocus' analysis, Amara Raja Energy & Mobility (NSE:ARE&M) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,073.10, compared to a current price of ₹894.90 — trading 16.6% below its estimated fair value. The current Return-on-Tangible-Equity is 16.63%, which is near median its 10-year median of 15.73 and 147.5% above the Industrial Products industry median of 6.72. Amara Raja Energy & Mobility's overall GF Score™ is 98/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Amara Raja Energy & Mobility (NSE:ARE&M), the current Return-on-Tangible-Equity is 16.63% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Amara Raja Energy & Mobility (NSE:ARE&M) Overvalued in 2026?
Based on GuruFocus' analysis, Amara Raja Energy & Mobility stock appears to be undervalued.
The current stock price of ₹894.90 is trading 16.6% below its estimated GF Value™ of ₹1,073.10.
GuruFocus considers Amara Raja Energy & Mobility to be Modestly Undervalued.
Key valuation signals for NSE:ARE&M:
Return-on-Tangible-Equity: 16.63% (near median its 10-year median of 15.73)
GF Value™: ₹1,073.10 vs. price of ₹894.90 (16.6% below fair value)
Industry Position: 147.5% above the Industrial Products median (#858 of 2972)
No single metric tells the full story. See the NSE:ARE&M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Amara Raja Energy & Mobility Ltd is an India-based battery maker for both industrial and automotive applications in the Indian storage battery industry. It offers Li-ion cells, battery packs, and charging solutions for Light Electric Vehicles and the telecom industry. The company's reportable segments are; Lead acid and allied products, and Others. The majority of its revenue is generated from the Lead acid and allied products segment. The others segment includes predominantly the manufacture and sale of new energy business-related products. Geographically, the derives its key revenue from India and also exports its products to various other countries.
98GF Score
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