Atul Auto Ltd. share price target

After achieving critical 7.5% domestic market share with diesel 3-wheeler SCVs, little known Atul Auto (AAL) is launching a gasoline vehicle. Incubated in-house under the tutelage of an industry veteran, the new product will open up vital metro/NCR and export markets. Gasoline vehicles comprised 34% of domestic 3W sales in FY15.

Atul Auto Ltd. (Atul Auto) is Gujarat based automobile manufacturing company. The company is mainly involved in the manufacturing and selling of three wheelers commercial vehicles focused mainly domestic rural markets. Atul is famous in the states of Gujarat and Rajasthan for its cost effective and high performance commercial vehicles. Now company has diverse the customer base in the cargo and passenger segment available on the two platforms viz. 350Kg payload capacity and 500Kg payload capacity. Atul auto is one of the fastest growing companies in India...

Atul Auto posted a net revenue of Rs.1225Mn in Q4FY15, lower than that of the previous quarter by 12%. However, the overall annual revenue grew by 15% to Rs.4928Mn in FY15 compared to the previous year revenue of Rs.4301Mn. Although the company consistently showed improvement throughout the years, the absolute increase in net sales between FY14 and FY15 (626Mn) is relatively lower than that of FY13 and FY14 (662Mn).

Operating revenue, EBITDA and PAT grew (yoy) by over 13.2%, 18.4% and 17.1% respectively during Q3FY15 which was in line based on our estimates. EBITDA margins increased to 12.7% in this quarter from 12.1% in the same quarter last year led by increase in average blended capacity utilization levels to 98% from 90%.

Atul Auto Ltd