Investment Call
Buy Atul Auto as an investment call for next 3 months around 400----390. Target 545.
Technical Levels
Support is present at 350--360 levels, Below this level it will get weak.
Resistance is at 435--500--590 is present. Above these levels it will get further strong.
Fundamentals
Market Cap.: ₹
864.01 Cr.
Current Price: ₹
393.75
Book Value: ₹
75.81
Stock P/E: 19.07
Dividend Yield: 1.27%
Face Value: ₹
5.00
- Atul Auto Q1FY17 numbers were below our expectation. Revenue stood at Rs. 925mn, slightly below our expectations of Rs. 932 mn because of lower than expectedrealization. EBITDA margins were much lower than our expectation (stood at 9.4%vs our expectation of 11.2%) due to lower top line and higher employee cost.
- PATwas below our expectation, stood at Rs. 50 mn (vs. our expectation of Rs. 62 mn)due to lower EBITDA. Revenue decreased by 13% YoY and 28% QoQ to Rs. 925 mndragged by 14% YoY fall in volume due to VAT issue and slowdown in 3W market.
- Average realization decreased by 1% YoY to Rs. 1,21,549 due to product andgeographical mix and exports were impacted due to significant depreciation inAfrican currency.
Quarterly Results
| Sep-13 | Dec-13 | Mar-14 | Jun-14 | Sep-14 | Dec-14 | Mar-15 | Jun-15 | Sep-15 | Dec-15 | Mar-16 | Jun-16 | |
| Sales | 108.86 | 123.05 | 112.58 | 99.74 | 131.25 | 139.33 | 122.48 | 106.76 | 142.87 | 151.7 | 129.7 | 93 |
| Expenses | 97.43 | 108.12 | 100.81 | 90.19 | 115.49 | 121.65 | 107.79 | 94.87 | 120.94 | 126.57 | 112.38 | 84.29 |
| Operating Profit | 11.43 | 14.93 | 11.77 | 9.55 | 15.76 | 17.68 | 14.69 | 11.89 | 21.93 | 25.13 | 17.32 | 8.71 |
| OPM | 10.5 | 12.13 | 10.45 | 9.57 | 12.01 | 12.69 | 11.99 | 11.14 | 15.35 | 16.57 | 13.35 | 9.37 |
| Other Income | 0.63 | 0.9 | 0.79 | 5.56 | 0.89 | 0.78 | 0.52 | 0.39 | 0.37 | 0.43 | 0.13 | 0.13 |
| Depreciation | 1.3 | 1.35 | 1.33 | 1.54 | 1.36 | 1.33 | 1.35 | 1.33 | 1.33 | 1.33 | 1.3 | 1.26 |
| Interest | 0.22 | 0.06 | 0.01 | 0.11 | 0.23 | 0.11 | 0.15 | 0.11 | 0.56 | 0.05 | 0.06 | 0.07 |
| Profit before tax | 10.54 | 14.42 | 11.22 | 13.46 | 15.06 | 17.02 | 13.71 | 10.84 | 20.41 | 24.18 | 16.09 | 7.51 |
| Tax | 3.16 | 4.76 | 2.79 | 3.79 | 4.09 | 5.71 | 5.08 | 3.74 | 6.94 | 8.21 | 5.24 | 2.5 |
| Net Profit | 7.38 | 9.66 | 8.43 | 9.67 | 10.97 | 11.31 | 8.63 | 7.1 | 13.47 | 15.97 | 10.85 | 5.01 |
Compounded sales Growth
10 year: 16.05%
5 Years: 32.68%
3 years: 18.15%
TTM 3.49
