NSEI:ATULAUTO

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 with solid track record and pays a dividend.

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

1.6%

ATULAUTO

7.3%

IN Auto

3.2%

IN Market


1 Year Return

-32.1%

ATULAUTO

-0.9%

IN Auto

5.6%

IN Market

Return vs Industry: ATULAUTO underperformed the Indian Auto industry which returned -0.9% over the past year.

Return vs Market: ATULAUTO underperformed the Indian Market which returned 5.6% over the past year.


Shareholder returns

ATULAUTOIndustryMarket
7 Day1.6%7.3%3.2%
30 Day0.02%14.7%6.0%
90 Day-15.2%14.5%2.0%
1 Year-31.2%-32.1%0.5%-0.9%7.8%5.6%
3 Year-51.7%-53.5%-13.5%-16.1%22.6%16.3%
5 Year-37.6%-41.3%13.2%7.7%43.1%29.6%

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

Valuation

Is Atul Auto undervalued compared to its fair value and its price relative to the market?

16.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ATULAUTO (₹222.85) is trading below our estimate of fair value (₹265.46)

Significantly Undervalued: ATULAUTO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ATULAUTO is good value based on its PE Ratio (9x) compared to the Auto industry average (16.4x).

PE vs Market: ATULAUTO is good value based on its PE Ratio (9x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: ATULAUTO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ATULAUTO is good value based on its PB Ratio (1.9x) compared to the IN Auto industry average (2.7x).


Next Steps

Future Growth

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

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATULAUTO's forecast earnings growth (6.3% per year) is below the savings rate (7.6%).

Earnings vs Market: ATULAUTO's earnings (6.3% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: ATULAUTO's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATULAUTO's revenue (6.3% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: ATULAUTO's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ATULAUTO's Return on Equity is forecast to be low in 3 years time (16.7%).


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

Earnings Trend: ATULAUTO's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: ATULAUTO's earnings growth over the past year (14.9%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: ATULAUTO earnings growth over the past year (14.9%) exceeded the Auto industry 6.4%.


Return on Equity

High ROE: ATULAUTO's Return on Equity (21%) is considered high.


Return on Assets

ROA vs Industry: ATULAUTO has a higher Return on Assets than the Auto industry average last year.


Return on Capital Employed

ROCE Improving: ATULAUTO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Atul Auto's financial position?


Financial Position Analysis

Short Term Liabilities: ATULAUTO's short term assets (₹1.9B) exceeds its short term liabilities (₹894.9M)

Long Term Liabilities: ATULAUTO's short term assets (1.9B) exceeds its long term liabilities (53.9M)


Debt to Equity History and Analysis

Debt Level: ATULAUTO is debt free.

Reducing Debt: ATULAUTO had no debt 5 years ago.

Debt Coverage: ATULAUTO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ATULAUTO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ATULAUTO has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ATULAUTO's debt is covered by short term assets.


Next Steps

Dividend

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

1.77%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%0.6%markettop25%2.4%industryaverage1.5%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ATULAUTO's dividend (1.77%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: ATULAUTO's dividend (1.77%) is low compared to the top 25% of dividend payers in the Indian market (2.43%).

Stable Dividend: ATULAUTO's dividend payments have been volatile in the past 10 years.

Growing Dividend: ATULAUTO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.9%), ATULAUTO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ATULAUTO's dividends in 3 years are forecast to be thoroughly covered by earnings (15% payout ratio).


Next Steps

Management

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

4.8yrs

Average board tenure


CEO

Jayantibhai Chandra (63yo)

0yrs

Tenure

₹13,780,000

Compensation

Mr. Jayantibhai 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 fam ...


CEO Compensation Analysis

Compensation vs. Market: Jayantibhai's total compensation ($USD193.82K) is about average for companies of similar size in the Indian market ($USD29.30K).

Compensation vs Earnings: Jayantibhai's compensation has been consistent with company performance over the past year.


Board Age and Tenure

4.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: ATULAUTO's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jayantibhai Chandra (63yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹13.78m
  • Mahendrakumar Patel (56yo)

    CFO & Whole time Director

    • Tenure: 24.9yrs
    • Compensation: ₹11.96m
  • Jitendra Adhia (48yo)

    President of Accounts & Finance

    • Tenure: 0yrs
  • Niraj Chandra (40yo)

    Whole Time Director

    • Tenure: 7.6yrs
    • Compensation: ₹5.86m
  • Paras Viramgama

    Company Secretary & Compliance Officer

    • Tenure: 5.4yrs

Board Members

  • Vijay Kedia (60yo)

    Non Executive Director

    • Tenure: 10.8yrs
    • Compensation: ₹42.50k
  • Jayantibhai Chandra (63yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹13.78m
  • Mahendrakumar Patel (56yo)

    CFO & Whole time Director

    • Tenure: 24.9yrs
    • Compensation: ₹11.96m
  • Mohanjit Walia (60yo)

    Independent Director

    • Tenure: 0.2yrs
  • Niraj Chandra (40yo)

    Whole Time Director

    • Tenure: 7.6yrs
    • Compensation: ₹5.86m
  • Margie Parikh (55yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹145.50k
  • Aarti Juneja (36yo)

    Independent Director

    • Tenure: 0.7yrs
    • Compensation: ₹15.00k
  • Jaichander Swaminathan (28yo)

    Independent Director

    • Tenure: 0.2yrs

Company Information

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


Key Information

  • Name: Atul Auto Limited
  • Ticker: ATULAUTO
  • Exchange: NSEI
  • Founded: 1986
  • Industry: Motorcycle Manufacturers
  • Sector: Automobiles
  • Market Cap: ₹4.893b
  • Shares outstanding: 21.94m
  • Website: https://www.atulauto.co.in

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 Analysis2019/10/18 12:47
End of Day Share Price2019/10/17 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.