BSE:531795

Stock Analysis Report

Executive Summary

Atul Auto Limited manufactures and sells front and rear engine three wheeler automobiles in India.

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.

Risks

  • Atul Auto has significant price volatility in the past 3 months.

Share Price & News

How has Atul Auto's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.1%

BSE:531795

-1.5%

IN Auto

-0.7%

IN Market


1 Year Return

-46.6%

BSE:531795

-32.9%

IN Auto

-12.1%

IN Market

531795 underperformed the Auto industry which returned -33% over the past year.

531795 underperformed the Market in India which returned -12.1% over the past year.


Share holder returns

531795IndustryMarket
7 Day-5.1%-1.5%-0.7%
30 Day-21.3%-3.5%-4.6%
90 Day-27.5%-13.4%-4.3%
1 Year-45.8%-46.6%-31.9%-32.9%-10.3%-12.1%
3 Year-47.1%-49.0%-19.9%-22.5%18.9%12.8%
5 Year-35.2%-38.6%6.1%1.0%37.6%24.7%

Price Volatility Vs. Market

How volatile is Atul Auto's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

April Top Value-Adding Stocks

1 year ago | Simply Wall St

April Top Value-Adding Stocks

1 year ago | Simply Wall St

April Top Value-Adding Stocks

Valuation

Is Atul Auto undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Atul Auto's share price is below the future cash flow value, and at a moderate discount (> 20%).

Atul Auto's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Atul Auto is good value based on earnings compared to the IN Auto industry average.

Atul Auto is good value based on earnings compared to the India market.


Price Based on Expected Growth

Atul Auto is good value based on expected growth next year.


Price Based on Value of Assets

Atul Auto is good value based on assets compared to the IN Auto industry average.


Next Steps

Future Growth

How is Atul Auto expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Atul Auto's revenue is expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

Atul Auto's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).

Atul Auto's revenue growth is positive but not above the India market average.

Atul Auto's earnings growth is positive but not above the India market average.

Atul Auto's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Atul Auto is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Atul Auto performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Atul Auto's year on year earnings growth rate has been positive over the past 5 years.

Atul Auto's 1-year earnings growth exceeds its 5-year average (14.9% vs 8.3%)

Atul Auto's earnings growth has exceeded the IN Auto industry average in the past year (14.9% vs 4%).


Return on Equity

Atul Auto has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Atul Auto used its assets more efficiently than the IN Auto industry average last year based on Return on Assets.


Return on Capital Employed

Atul Auto's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Atul Auto's financial position?


Financial Position Analysis

Atul Auto is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Atul Auto's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Atul Auto has no debt.

Atul Auto currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Atul Auto has no debt, it does not need to be covered by operating cash flow.

Atul Auto has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Atul Auto has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Atul Auto's current dividend yield, its reliability and sustainability?

4.08%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Atul Auto's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

Atul Auto's dividend is below the markets top 25% of dividend payers in India (2.52%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).


Next Steps

Management

What is the CEO of Atul Auto's salary, the management and board of directors tenure and is there insider trading?

7.4yrs

Average board tenure


CEO

Jayantibai Chandra (63yo)

₹12,720,000

Compensation

Mr. Jayantibai Jagjivandas Chandra serves as the Managing Director at Atul Auto Limited Mr. Chandra began his career as a manufacturer of carrier Auto Rickshaw under the brand name `KHUSHBU' under his fami ...


CEO Compensation Analysis

Jayantibai's remuneration is higher than average for companies of similar size in India.

Jayantibai's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

7.4yrs

Average Tenure

58yo

Average Age

The tenure for the Atul Auto board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jayantibai Chandra (63yo)

    Chairman & MD

    • Compensation: 12.72m
  • Mahendrakumar Patel (56yo)

    CFO & Whole time Director

    • Tenure: 5.3yrs
    • Compensation: 11.04m
  • Jitendra Adhia (48yo)

    President of Accounts & Finance

  • Niraj Chandra (40yo)

    Whole time Director

    • Compensation: 5.16m
  • Paras Viramgama

    Company Secretary & Compliance Officer

    • Tenure: 5.3yrs

Board Members

  • Vijay Kedia (60yo)

    Non Executive Director

    • Tenure: 10.6yrs
    • Compensation: 37.50k
  • Jayantibai Chandra (63yo)

    Chairman & MD

    • Compensation: 12.72m
  • Mahendrakumar Patel (56yo)

    CFO & Whole time Director

    • Tenure: 24.8yrs
    • Compensation: 11.04m
  • Mohanjit Walia (60yo)

    Independent Director

  • Niraj Chandra (40yo)

    Whole time Director

    • Tenure: 7.4yrs
    • Compensation: 5.16m
  • Margie Parikh (55yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: 134.00k
  • Aarti Juneja

    Additional Independent Director

    • Tenure: 0.5yrs

Company Information

Atul Auto Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Atul Auto Limited
  • Ticker: 531795
  • Exchange: BSE
  • Founded: 1986
  • Industry: motorcycle manufacturers
  • Sector: automobiles
  • Market Cap: ₹4.665b
  • Shares outstanding: 21.94m
  • Website: Click here

Number of Employees


Location

  • Atul Auto Limited
  • 8-B, National Highway
  • Survey No. 86, Plot No. 1-4
  • Rajkot
  • Gujarat
  • 360024
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531795BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2005
ATULAUTONSEI (National Stock Exchange of India)YesEquity SharesININRJun 2005

Biography

Atul Auto Limited manufactures and sells front and rear engine three wheeler automobiles in India. The company offers passenger and cargo carriers, and pickup and delivery vans. Its products are diesel, pe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:34
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.