moneycontrol.com network18online.com

 

SENSEX: 73651.35 655.04

NIFTY: 22326.90 203.25

Multi Baggers

Hem Securities

5.30 AM Jan 1st 1970

Atul Auto

BSE ID : 531795     NSE ID : ATULAUTO

RECOMMENDED PRICE 113.00

PEAK FROM RECO 722.00 538.94%

CURRENT PRICE 476.30 Resource id #18

Atul Auto is a leading manufacturer of 3-Wheeler Commercial Vehicles in the state of Gujarat. It is one of the fastest growing automobile companies in India, with increasing dealer's network.

Atul Auto

Background

Atul Auto is a leading manufacturer of 3-Wheeler Commercial Vehicles in the state of Gujarat. It is one of the fastest growing automobile companies in India, with increasing dealer's network.

The company has achieved highest sales for the financial year 2011-12 in the history of Atul auto. Its yearly sales number stood at 27,000 units in FY2011-12 as against 19,400 units during FY2010-11; implicating a robust growth of about 40%. Whereas sales for January-March 2012 quarter recorded at 7457 vehicles as compared to 5927 vehicles during January-March 2011 quarter.

The company has registered sharp numbers for the quarter ending March 2012. Revenues from operations moved up 30.10% to Rs. 82.91 crore compared to Rs.63.73 crore during corresponding quarter of the last year. Operating profit rose strongly by about 78% in Q4FY12 at Rs.7.07 crore from Rs.3.98 crore in the like quarter last year. The Net Profit of the company reported a remarkable increase of 109.05% to Rs. 4.16 crore from Rs.1.99 crore in previous same quarter. Adjusted EPS stood at Rs.5.51 compared to Rs.2.64 (adjusted for current equity capital) in the same quarter last year. Operating profit margin expanded by 228bps from 6.25% to 8.53% and net profit jumped 190bps to stay at 5.02 as compared to 3.12% clocked in Q4FY11.

The Company’s Board has recommended, subject to approval of Members in the ensuing Annual General Meeting, the issue & allotment of bonus shares in ratio of one equity share for every Two shares held in the Company.

Valuation

With gaining market share, strong distribution network and capacity expansion plans; Atul Auto Ltd. future earnings scenario looks strong. We believe AAL is trading at an attractive valuation at 7.03x and 5.93x of FY13EPS of Rs.24.28 and FY14EPS of Rs.28.79. We initiate a ‘BUY’ on the stock with a target price of Rs.220 (appreciation of about 29%) with the medium to long term investment horizon.

*Rates adjusted for bonus

 

For full report, Click on the attachment

Disclaimer & Disclosure: This document is prepared for our clients only, on the basis of publicly available information and other sources believed to be reliable. Whilst we are not soliciting any action based on this information, all care has been taken to ensure that the facts are accurate, fair and reasonable. This information is not intended as an offer or solicitation for the purchase or sell of any financial instrument and at any point should not be considered as an investment advise. Reader is requested to rely on his own decision and may take independent professional advise before investing. Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited, Directors and any of its employees shall not be responsible for the content. The person accessing this information specifically agrees to exempt Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and further agrees to hold Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The companies and its affiliates, officers, directors, and employees, including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or sell the securities there of, company (ies) mentioned here in and the same have acted upon or used the information prior to, or immediately following the publication.

AtulAuto_HemSec_Multibagger.pdf

Super Combo
  3200

Powerful mix of technical and commodity packs with timely expert.

Technical
2000

Designed especially for traders looking to tap the profit opportunities of volatile markets.

Commodities
2000

Stay on top of the Indian Commodities Market with commodity trading calls Intraday, and Positional (Short & Long-Term Calls).

Log on to

http://m.poweryourtrade.com

on your phone and stay updated on the go!

ISO 27001 - BSI Assurance Mark