Atul Auto Ltd is one of the fast growing Diesel Three wheeler
manufacturers in India located at Rajcot, in Saurashtra .
Late Mr. Jagjivanbhai Karsanbhai Chandra of ATUL GROUP
was pioneered in the concept “CHADKA”, an affordable mode
of transportation for common man in India. Company's Rajcot
plant having production capacity of 24000 vehicle per annum in
single shift basis.In 2009, Atul has introduced its all-new rear
engine three-wheeler, under the brand name ATUL GEM, which is
one of the best selling three wheelers in India presently.
Atul GEM is a reliable vehicle, which gives a fuel economy
of 35 kmpl and has a payload capacity of 585 Kg.
Recently Company expanded its operations into6-seater Auto Rickshaws, Pick-Up Vans and Chassis of
Passenger Vehicles.Atul planning to develop more
innovative, environment-friendly and practical automobile
vehicles considering changes in market trends.These includes
CNG and LNG operated vehicles, 4- wheeler one tunner LCVs ..etc
For sourcing engines for its CNG / LNG vehicles, company
already signed an agreement with Lombardini.
In 2010 company is planning an additional capex of Rs.20 Cr
to expand its production capacity to 36000 units per year.
Company aggressively expanded its marketing network in South India
last year and result of the same clearly visible in recent financial
performance. Company has registered a phenomenon financial
performance for the financial year 2009-10 with company’s net profits
zooming up by around 1000% from Rs.46 lakh to Rs.4.54
crore over the year ended March 2009. On an equity capital
of Rs 6.08 crore, EPS stood at Rs. 7.76. The company has recommended
a final dividend of Rs 2 per share for the year ended March 2010.
In a segment where cut throat competition is prevailing, by fighting with biggies
like Piaggio,Bajaj,Mahindra ..etc ,ATUL is coming out as a winner mainly
because of the quality of vehicle offered at reasonable price, well planned
marketing strategy and overall commitment of management.
At the prevailing market price
At the prevailing market price
of Rs. 71/- this stock is available at below 10 prices to earnings ratio.
Considering the company’s well accepted vehicle, strong distribution
net work, dividend pay-out track record and its ambitious plans to
enter 4 wheeler and CNG and LNG running vehicles, one may look into it
with a long term view
Hi Valuepick,
ReplyDeleteFor the benefit of all your readers......could you please post an article about how to value and company correctly ?
Vikas , Even if your idea is good ,I am sorry to say that since it is a very vast subject and need a look from various angles ,nowadays I am not in a position to spend sufficient time to do it .Hope it in a later stage when time permits.
ReplyDeleteNo probl buddy......Please take your own time.
ReplyDeleteANOTHER SE INVESTMENT IN MAKING:
ReplyDeleteARMAN FINANCIAL bse code 531179 seems better choice than Capital Trust.Atleast Arman Financial they have never gone into loss since past many years.I feel recent foray into MFI will bring the company into greater dimension and forthcomming higher NP, thereby, entering into different league like SE Investment.One can steal the opportunity at lower prices and have patience.Management is good and proven.It will go miles after miles.
KOPRAN bse code 524280@42/= is a great turnaround story of 2010.Exactly the same happend with LUPIN when it was quoting at 62/= way back in 2002 and looking at the low price I bought the stock in huge quantity.Lupin is now trades at 1900+ ex 1:1 bonus.I feel same thing is happening here with KOPRAN and looks super multibagger from hereon.In fact,it is another LUPIN in making.Good opportunity to grab such stocks and held on for super duper profits.Cheers.
ReplyDeleteHi Valuepick,
ReplyDeleteWhat's your current view on picking this stock at CMP which is much lower at Rs 90 after the rights date.
Cheers