Atul Auto

Equity | India | Automobile
Atul Auto Ltd.
Initiating
Coverage
Drive on the clear way.
BUY
CMP (`)
Company Snapshot
Target (`)
462
562
Potential Upside
Absolute Rating
22%
BUY
Market Info (as on July 08, 2015)

BSE Sensex
27,687.72
Nifty S&P
8,363.05
BSE Group
BSE Code
531795
NSE Code
ATULAUTO
Bloomberg Code
ATA IN
Market Cap (`bn)
10.26
Free Float (%)
47%
52wk Hi/Lo
722 / 242.50
Avg. Daily Volume (NSE)
111939
Face Value / Div. per share (`)
5.00 / 2.50
Shares Outstanding (mn)
FIIs
Indian Auto mobile industry is one of the fastest growing industries in the country. Strong domestic
market creates greater opportunities for such players. Strong initiatives taken by central
government like rural transport and infrastructure development will help to boost the volumes. 3wheelers are an important element of goods transportation in the country. It is the ideal and most
widely used mode for goods transportation in rural and semi urban markets. It provides last mile
connectivity in the metro and urban markets where entry of large commercial vehicles into city
limits is increasingly getting restricted.
Strong distribution and dealer network makes more robust business structure
DII
Others
52.70 6.06 8.46 32.78
(`mn)
Financial Snapshot
Y/E Mar
FY13
FY14
FY15E
FY16E
Net Sales
4,301
4,928
5,756
7,016
EBITDA
454
579
743
888
PAT
298
406
494
568
EPS
27.16
18.49
22.44
25.81
32%
34%
32%
29%
ROCE (%)
28%
28%
28%
26%
P/E
13.2
26.4
21.8
18.9
7.8
18.2
13.9
11.4
EV/EBITDA
Fast growing industry and favorable economic conditions will provide an edge
21.94
Shareholding Pattern (in %)
ROE (%)
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 in 3 wheeler
industry growing with the CAGR of 19.50% in last five years.
Investment Rationale
Stock Detail
Promoters
July 8, 2015
Share Price Performance

280
260
240
220
Atul auto has strong distributing network across the country. Atul auto has 17 regional offices in the
country including almost all the major states. The company also has three training centers at
Gujarat, Chhattisgarh, and Andra Pradesh. Atul auto has strong dealers network ensures the
consistent sales over geographical splits. The Company has 200 primary dealers across the territories
including rural and urban parts of the country. The company also strengthens its network with 120
secondary dealers. This makes company business structure more strong. Now company has started
its business overseas, the company has presence in the countries like Bangladesh, Kenya, Tanzania,
South Africa, Nigeria, and Jamaica. This also creates a huge business opportunity overseas.
Healthy balance sheet and return ratios makes Atul Auto a safer bet
Atul auto is having very healthy balance sheet. The company has maintained the operating margins
instead of making the strong volume growth. This shows the high operational efficiency in the
business. EBITDA margin has grown from 9% in FY12 to 12% in FY15 in the span of three year.
Whereas operating margins has grown from 8% in FY12 to 12% in FY15. The company has strong ROE
which makes company more lucrative. ROE for FY 12 stood at 22% which has grown to 34% in FY15.
The ROCE of the company has also grown from 19.8%in FY12 to 28.3% in FY15. This creates a great
investment opportunity for the investor.
200
180
Valuation
160
140
120
100
Atul Auto Ltd
Rel. Perf.
Atul Auto (%)

Sensex (%)
1Mth
May-15Jun-15Jun-15
Mar-15Apr-15Apr-15
Dec-14Jan-15Feb-15Feb-15
Sep-14Oct-14Nov-14Dec-14
Jul-14Jul-14Aug-14Sep-14
80
BSE SENSEX
3 Mths
6Mths
1Yr
14.5 (17.6)
5.24 (1.21)
(27.4)
4.69
72.2
Source: Company data, Institutional Research
7.94
At the CMP of `462, Atul Auto Ltd. is trading at 25.09x, and 18.9x its FY16E, and FY17E EPS of `22.4
and `25.8 respectively. Compared to its peers; Atul auto trading at a discount P/E multiple, although
its margins are better than or comparable to peers. We initiate coverage on Atul Auto Ltd with a
BUY rating and attach a multiple of 25.1 xs to Atul Autos FY16E earnings (EPS) to arrive at the
target price of `562, indicating a potential upside of 22%.
Analyst
Omkar Tanksale
+91-22- 6614 2692

omkar@geplcapital.com
Institutional Research
A
Index &
Content
Sr. No. Topic
Page No.
1
Company Background
3
2
Business Model
4
3
Key Management
Personnel
5
4
Investment Rationale
6
5
Three Wheeler
Industry at a glance
10
6
Financial Overview
11
7
Key Risks
14
8
SWOT Analysis
15
9
Valuation & Outlook
16
10
Financials
17
11
Disclaimer
18
J
u
Institutional Research | Initiating Coverage
J
u
A
Company
Backgroun
d
Atul Auto Ltd. (Atul)
is the Gujarat based
small
sized
three
wheeler
manufacturing
company. It is one of
the youngest players
in the 3 wheeler
business
with
humble beginning in
1992. It has well
diversified
product
portfolio
of
45
models and variants,

an extremely strong
brand,
integrated
manufacturing plant
and presence across
key
regions,
Atul
Auto is today the

fastest
growing
wheeler
player
in
India,
growing
at
19.5%
for
last
years,
having
installed capacity of
48,000
units
annum
at
per
Rajkot
Plant. It not only

caters
to
customer
the
diverse
base
Cargo
Passenger
in
&
segment
but also available on

both the platforms
i.e. 350 kgs payload
capacity and 500 kgs
payload
Atul
capacity.
auto
is
the
inventor of the most

popular
rural
transport vehicle
Chakkada.
Journey of Atul Auto
Company incorporated as a
private ltd company in 1986
in Maharashtra, its
registered office was shifted
to Jamnagar Gujarat in 1992
& then to Rajkot in 1997.
Company went public in
March 1996
Origin Lie in the 1970s

when Mr. J Chandra
sought to modify
motorcycles to make
transport to make needs
of rural areas of
Saurashtra.
It has been awarded with
Most Promising SME in
Auto & Engineering Co
by CNBC TV-18 in 2012. It
has also awarded with
Leaders of tomorrow
Award 2013 by ET Now.
Integrated plant located

in Shapar in Rajkot
District of Gujarat. It has
installed capacity of
48000 vehicles p.a.
Today, it has market
presence in 16 states
with 200 primary dealers
& 120 secondary dealers
Source: Company,
A
Business Model
Atul Auto is one of
the youngest players
in the 3 wheeler
business.
Initially,
company started its
operation
with
manufacturing
of
Chhakadas
(Rural
Transport
Vehicle
(RTV)), customized
multi-purpose
vehicles
for
Saurashtra region in
Gujarat.
However
since year 2000,
company has been
successful
in
launching
new
products in threewheeler segment. In
2009,
company
launched
rear
engine 3W & thus
mark
a
real
reflection point for
itself. It currently
offers
cargo
&
passenger
variant
(diesel
engine
powered) on 350kg
& 500kg. It has
current production
capacity of 48000
units per annum in
Rajkot, Gujarat &
expected
to
increase to 60000
units per annum in
next
2
years.
Recently, it
has
introduced
gasoline/alternate
fuel
for
3Ws.
Company has market
presence
in
16
states of India with
200 primary dealers
& 120 secondary
dealers along with
overseas presence in
market
like
Bangladesh,
Tanzania,
Kenya,
South Africa, Nigeria
J
u
&
Jamaica.
Company has 8%
market share in
total
domestic
industry.
Consistent product
development
Source: Company,
A
Key
Management
Personnel
Atul Auto is blessed
with rich experience
of
sound
management
that
takes company on a
successful path.
Mr. Jayantibhai J
Chandra (Executive
Chairman &
managing
Director ):
Mr.
Chandra
is
responsible for the
product
development
and
creating goodwill for
the company. He
focuses
on
the
medium- to longterm future of the
company. He is also
involved
in
leadership
development
and
corporate
social
responsibility.
Mr. Mahendra J
Patel (Director and
CFO):
He is responsible for
the major financial
decisions
and
managing the money
efficiently for the
company. Mr. Patel
is also serves as a
executive director
of the company.
Mr. Niraj J Chandra
(President,
Corporate Affairs &
Infrastructure):
He is the first
generation
entrepreneur of the
company taking the
company on new
growth path of the
company.
He
is
responsible
for
creating brand and
product
development of the
company.
J
u
Mr. Vijay K Kedia

(Director):
Mr. Kedia is serves
as the executive
director of the
company.
A
Investment
Rationale
Fast
growing
industry
and
favorable
economic
conditions will
provide an edge
Indian
automobile
industry is one of
the fastest growing
industries.
Strong
domestic
market
makes industry more
robust
and
lucrative.
Strong
initiatives taken by
central government
like rural transport
and
infrastructure
development
will
help to boost the
volumes. India is
one of the largest
manufacturers for 3wheelers producing
volume of ~ 950,000
units
p.a.
and
growing at 6-8% p.a.
Having a domestic
market of ~ 550,000
units p.a. And is
also a cost effective
mode for personal
and
mass
transportation.
Export
markets
include developing
and
underdeveloped countries
like Bangladesh, Sri
Lanka,
Indonesia,
African
countries
and Latin American
countries.
3-wheelers are an
important element
of
goods
transportation in the
country. It is the
ideal
and
most
widely used mode
for
goods
J
u
transportation
in
rural and semi urban
markets. It provides
last
mile
connectivity in the
metro and urban
markets where entry
of large commercial
vehicles into city
limits is increasingly
getting restricted.
Market Share (3W) Domestic FY15 - Cargo
Market Share (3W) Domestic FY15 - Passenger
SIL,
1%
SIL, 6%
AAL,
18%
PVP
L,
53
%
AAL, 5%
PVPL,
27%
BAL,
0%
M&M,
M&M, 8% BAL, 54%
23%
Market Share (3W)
Domestic FY15 Total Domestic
Industry
TVS,
3%
SIL, 2%
AAL,
8%
PVPL,
32%
BAL, 44%
M&M,
11%
Source: Company data,
A
Strong
distribution and
dealer network
makes more
robust business
Atul auto has strong
distributing network
across the country.
Atul auto has 17
regional offices in
the
country
including almost all
the major states.
The company also
has three training
centers at Gujarat,
Chhattisgarh,
and
Andra Pradesh. Atul
auto
has
strong
dealers
network
ensures
the
consistent sales over
geographical splits.
The Company has
200 primary dealers
across
the
territories including
rural
and
urban
parts of the country.
The company also
strengthens
its
network with 120
secondary dealers.
This makes company
business
structure
more strong. Now
company has started
its
business
overseas,
the
company
has
presence
in
the
countries
like
Bangladesh, Kenya,
Tanzania,
South
Africa, Nigeria, and
Jamaica. This also
creates
a
huge
business opportunity
overseas.
Distributing Network
across India
J
u
Source: Company,
17
Regional
Offices
3
Training
Centers
200
Primary
Dealership
120 Secondary
Dealership
Overseas Presence
Bangladesh
Tanzania
Kenya
South Africa
Nigeria
Jamaica
J
u
A
Strong volume
growth backed
by low cost
product help to
boost sales
Atul auto has high
volume growth in
the past few years.
The company has
posted 22% CAGR in
last 5 years. Gujarat
and
Rajasthan
regions
are
predominantly
responsible for the
most of the sales.
Industrialization and
urbanization in the
Gujarat
help
company to boost its
volume
growth.
However
now
company has started
expanding
its
footprints across the
country which will
also help company
to
maintain
its
growth momentum.
Volume growth
120,
000
14
,0
00
12
,0
00
115,
000
10
,0
00
125,
000
110,
000
105,
000
100,
000
95,0
00
90,0
00
85,0
00
8,
00
0
6,
00
0
4,
00
0
2,
00
0
Q4FY15
Q4FY13
Q1FY14
Q2FY14
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Q3FY15
Q1FY11
Q2FY11
Q4FY11
Q1FY12
Q2FY12
Q3FY12
Q4FY12
Q1FY13
Q2FY13
Avg Realization
No of Vehicle Sold ( numbers)
Source: Company,
The above chart

shows
that
the
company
has
consistent sales in
terms of volumes
over the period of
time. The consistent
volume
growth
makes Atul auto
more
lucrative.
Average realization
also
shown
the
upward
trend
indicates the rising
pricing power of the
company. This also
shows
that
the
company has the
strong foundation in
the business. Robust
product
profile
creates
a
great
business opportunity
for the business. We
believe that Atul
auto continue its
volume growth in
the
upcoming
period.
J
u
A
High expansion
plans will boost
the volumes
Atul
autos
management
has
taken
strong
initiatives to grow
its business. The
company
has
doubled its capacity
to
48,000
units
annually at its only
manufacturing plant
at Rajkot Rajashtan.
By the end of this
fiscal FY16 company
has also decide to
ramp
up
the
capacity to 60,000
units annually at the
current
manufacturing
plant. The company
has also plan to
build a new plant in
the Gujarat with the
doubling
the
capacity to 120,000
units per year. This
higher
expansion
plans
will
not
increase the debt
burden
as
total
inflow of Rs.100mn
to Rs.150 mn will be
used
from
the
reserves. So the
company will likely
to remain debt free
or there will be
marginal debt on its
balance sheet.
Manufacturing
Capacity
60,000
50,000
40,000
30,000
20,000
10,000
0
FY11
FY12
FY13
Capacity
FY14
FY15
Sales
Source: Company,
A
Three Wheeler
Industry In India
Three wheeler
Industry a great
opportunity
3Ws are widely used
in India as an
affordable means of
short-to-medium
distance
public
transportation and
last
mile
connectivity
for
goods
transportation.
Three
wheelers
segment constitute
only 3 % of total
automotive industry.
India is one of the
largest
manufacturers
of
three wheelers in
the world with a
production
of
950,000
units
annually in FY15. Of
these,
almost
530,000 units are
sold in the domestic
market,
with
exports comprising
the balance 420,000
units.
Threewheelers play an
important part in
transporting
both
passengers as well
as goods, providing
a
cost-effective
alternative for last
mile connectivity in
both urban cities as
well as rural towns
of the country. With
easier
permits
available
for
CNG/LPG vehicles,
three-wheelers are
proving emerging as
a
popular
alternative for both
personal and mass
transportation
J
u
needs.
3-wheeler
products available
with alternative fuel
like CNG & LPG and
thus its operating
cost is moderate.
Apart
from
the
domestic demand,
India
has
also
emerged
as
important
export
hub for 3Ws with
presence in some of
the countries like
Bangladesh,
Sri
Lanka,
Indonesia,
African and Latin
American countries.
India export 99% of
passenger segment
3-wheelers to other
nations & only 1% of
cargo segment. Atul
has rising market
share will help to
grow the business.
We believe that Atul
auto will improve
with the CAGR of
15-17% in the next 5
years.
Industry At a
Glance (Domestic
57%)
5,31,927 unit
Application
Fuel-type
Tonnage
Paxx
81%
Industry At a
Glance (Export
43%)
4,07,957 unit
Application
Cargo
19%
Alternative
34%
Diesel
66%
0.5 Tonne
47%
0.35 Tonne
53%
Fuel-type
Tonnage
Paxx
99%
Cargo
1%
Alternative
93%
Diesel
7%
0.5 Tonne
6%
0.35 Tonne
94%

J
u
A
Financial
Overview
Pretax Margin
EBITDA Margins
As shown in the
chart below, Atul
auto has consistent
growing EBITDA over
the period of time.
There is a marginal
decline
of
the
EBITDA
in
the
1QFY15 but regain
the momentum in
the
upward
direction. We also
can see from the
above chart that
EBIDTA margin are
stable
over
the
period of time. This
shows
the
operational
efficiency
is
maintain
or
increasing even if
the input cost is
rising.
EBITDA Margins
2
0
0
1
8
0
1
4
%
1
2
%
1
6
0
1
4
0
1
2
0
1
0
%
8
%
1
0
0
6
%
8
0
6
0
4
0
4
%
2
%
Q3FY15
0
%
Q4FY15
Q2FY15
Q1FY15
Q3FY15
EBIDA
margin
Q4FY15
Q1FY15
Q2FY15
Q2FY14
Q1FY14
Q4FY13
Q3FY14
Q4FY14
EBI
TD
Q3FY13
Q2FY13
Q4FY12
Q1FY13
Q3FY12
Q1FY12
Q2FY12
2
0

Operating Margins
The chart below
shows EBIT and EBIT
margin in last 3
years.
Operating
margins
are
maintained over the
period
of
time.
Instead we can see
that it is being
growing from last
few quarters. This
shows
that
operational
efficiency
is
improving.
This
makes
business
more robust and
promising over the
longer run horizon.
Operating Margins
140
16
%
14
%
12
%
120
10
%
180
160
100
8%
80
6%
60
4%
40
2%
15
Q3FY
0%
Q4FY15
15
Q1FY
Q2FY15
15
Q3FY
EBIT Margin
Q4FY15
Q2FY15
15
Q1FY
14
Q3FY
14
Q2FY
14
Q1FY
Q4FY14
EBIT
13
Q4FY
13
Q3FY
Q2FY1
3
Q1FY13
12
Q2FY
Q3FY12
Q1FY12
12
Q4FY
20

J
u
A
Net Profit
Margin
As we can see from
the chart below, PAT
is increasing with
the higher growth
rate and margins are
also
improving.
Rising NPAT margins
shows the lesser
debt burden on the
companies shoulder.
We believe that the
in the upcoming
period the growth
momentum
will
likely to continue.
NPAT Margin
NPAT ( Calculated)

Return Margin
ROE performance
The
Return
on
equity is increasing
at the smoother
pace. However some
capital expenditure
in FY14 will impact
negatively on the
growth momentum
but we believe that
the ROE will likely
to maintain the
momentum.
R
Q4FY15
Q2FY15
Q1FY15
Q4FY15
Q3FY15
Q3FY15
NPAT
Margi
n
Q2FY15
0%
Q1FY15
0
Q4FY14
2%
Q3FY14
20
Q2FY14
4%
Q1FY14
40
Q4FY13
6%
Q3FY13
60
Q2FY13
8%
Q1FY13
80
Q4FY12
10%
Q3FY12
100
Q2FY12
12%
Q1FY12
120
o
E
35
0
4
0
%
3
5
%
3
0
%
30
0
2
5
%
45
0
40
0
25
0
2
0
%
20
0
1
5
%
15
0
1
0
%
10
0
5
%
0
%
50
0
FY11
FY
12
FY13
Net Profit
FY14
FY15
ROE

J
u
A
Return on the
capital Employed
(ROCE)
Return on capital
employed
(ROCE)
have maintained the
growth momentum.
Lower debt burden
help to maintain the
ROCE
over
the
period of time. The
ratio
has
also
maintain
the
synchronous
movement with the
movements in the
net
profit.
This
shows that invested
capital can optimize
the net profit. We
believe that in the
upcoming period the
growth momentum
likely to continue.
Ro
CE
3
5
%
3
0
450
400
350
2
5
%
300
2
0
%
1
5
%
1
0
%
250
200
150
100
5
%
50
0
%
0
FY11
FY
12
FY1
3
Net Profit
FY14
RoCE

Net Profit to
Payout Ratio
Atul auto has history
FY15
of paying dividend
to its share holder.
As shown in the
diagram below we
can
see
that
company had given
consistent dividends
as proportion to the
net
profit.
We
believe that payout
ratio to net profit
ratio will likely to
remain same. This
also makes stock
more
lucrative.
Investor can also
take privilege of
higher payout ratio.
Net Profit to Payout
Ratio
450
120%
400
100%
350
300
80%
250
60%
200
150
40%
100
20%
50
0
0%
FY11
Net
Profit
FY12
FY13
FY14
FY15
Payou
t
Ratio

J
u
A
Key Risks
Investment Risk :
Increase in the
lending
rates
(interest rates)
will
make
vehicles
expensive which
may
cause
lower demand.
Increase in the
fuel price will
also affect the
demand
adversely
on
the automotive
segment.
Rise
in
the
prices of the
key
raw
materials
like
iron,
steel,
aluminum will
impact
the
margins
negatively.
Entry of the big

players
like
Mahindra
&
Mahindra, Tata
Motors
and
Bajaj Auto into
three wheeler
segment
may
cause
the
market share to
reduce.
J
u
A
SWOT Analysis
Strengths
Opportunities
Diversification of
business.
m
a
Mining the existing and the new clients
Atul
Auto
Ltd.
Weaknesses
Single domain dependence.
Thre
ats
Slowdown
economy
Rising Lending rates
lagging geographical
Entry of the strong player

diversification
Source: Institutional Research
J
u
A
Valuation &
Outlook
At the CMP of `462,
Atul Auto Ltd. is
trading at 25.09x,
and 18.9x its FY16E,
and FY17E EPS of
`22.4
and
`25.8
respectively.
Compared to its
peers; Atul auto
trading at a discount
P/E
multiple,
although its margins
are better than or
comparable
to
peers. We initiate
coverage on Atul
Auto Ltd with a BUY
rating and attach a
multiple of 25.1xs to
Atul Autos FY16E
earnings (EPS) to
arrive at the target
price
of
`562,
indicating
a
potential upside of
22%.
1 year forward P/E

Chart
Source: Capitaline,
20.
0X
25.
0X
Oct-14Jan-15
Jul-14
Jan-14Apr-14
Apr-13Jul-13
Jan -13
Apr-12
Jul-12Oct-12
15.0
X
30.
0X
Apr-15
10.
0X
Oct-13
Close -Unit
Curr
Oct-11Jan-12
Apr-10
Jul-11
Jul-10Oct-10Jan-11Apr-11
1,
60
0
1,
40
0
1,
20
0
1,
00
0
80
0
60
0
40
0
20
0
1 year forward P/
BV
Chart
900
800
700
600
500
400
300
200
6.0 X
10.0 X
Jul-14
Oct-14Jan-15
Apr-15
Oct-13
8.0 X
Jan-14Apr-14
Apr-13Jul13
Jan-13
Oct-12
Jul-12
4.0 X
Apr-12
Oct-11
Close -Unit Curr
Jan-12
Jul-10Oct-10Jan-11Apr-11
Apr-10
Jul-11
100
12.0 X
Source: Capitaline,
A
Income
Statement
Y/E Mar (`mn)
Balance
Sheet
Net revenues
Raw material cost
EBITDA
EBITDA Margin (%)
Depreciation
Other Income
Interest (Net)
Exceptional Items
PBT
PBT Margin (%)
Tax
Reported PAT
Key Ratio
Y/E Mar (`mn)
Per Share Ratios
Fully diluted E P S
Book Value
Dividend per share
Valuation Ratio
P/E
P/BV
EV/EBITDA
EV/Sales
Growth Ratios
Sales Growth
EBITDA Growth
Net Profit Growth
Common size Ratios
EBITDA Margin
EBIT margin
PAT margin
Return ratios
RoNW
RoCE
Turnover ratios (days)
Debtors ( Days)
Creditors ( Days)
Inventory (Days)
Solvency Ratios
Total Debt/Equity
Source:
Company data,
Institutional
Research
J
u
Y/E Mar (`mn)

Equity capital
FY13
112
FY14
112
FY15
112
FY16E
112
FY17E
112
Reserves & Surplus
631
833
1099
1448
1850
Net worth
Total debt
743
2
945
3
1211
5
1560
5
1962
5
Deferred Tax Liability
45
61
52
45
45
790
481
1,009
533
1,268
799
1,610
949
2,012
1099
12
12
10
10
10
Other Non Current Assets
38.5
49.7
73.5
90
90
Total Non-Current Assets

Debtors
532
72
595
131
883
323
1,049
301
1,199
368
Cash & bank
381
452
274
482
684
25
Total Liabilities & Equity

Net block
Investments
Long Term Loans & Adv
Loans & advances
16
29
33
25
Other Current Assets
Total Current Assets

Creditors
699
235
851
272
892
268
1,073
337
1,399
411
Provisions
206
166
239
175
175
Current Liab. & Prov.
440
438
507
512
586
Total Assets
790
1,009
1,268
1,610
2,012
FY13
372
FY14
427
FY15
593
FY16E
726
FY17E
856
86
Cash Flow
Y/E Mar (`mn)
PBT
Add: Depreciation
44
52
56
72
(170)
84
150
(33)
49
Taxes paid
113
130
187
232
288
CF from operations
Capex
473
110
266
105
312
322
598
222
604
236
0
Chg. in working capital
Purchase of investment
Other Adjustments
CF from Investing acti.
Share application money
(2)
(7)
11
24
17
102
(77)
116
(96)
343
(140)
239
(144)
236
(166)
Debt Charges
(26)
17
(7)
(7)
Other changes
(139)
(232)
(686)
(477)
(472)
CF from Financing acti.

Chg. in cash
(243)
333
(311)
71
(833)
(178)
(629)
208
(638)
202
Opening cash
48
381
452
274
482
Closing cash
381
452
274
482
684
Du-Pont Analysis
(%)
PAT/ PBT
FY13
70%
FY14
70%
FY15
68%
FY16E
68%
FY17E
66%
PBT/ PBIT
99%
99%
102%
99%
99%
PBIT/ sales
10%
10%
12%
13%
12%
Sales/ Assets
295%
297%
276%
270%
269%
Assets /Equity
166%
153%
147%
136%
132%
35%
32%
34%
32%
29%
ROE
J
u
NOTES
Recommendation Rationale
Recommendation
Expected Absolute Return (%) over 12 months
BUY
>15%
ACCUMULATE
<10% and >15%
NEUTRAL
<-10% and <10%
REDUCE
>-10% and <-20%
SELL
>-10
Expected absolute returns are based on share price at market close unless otherwise stated. Stock recommendations are based on absolute upside (downside) and have a 12-month
horizon. Our target price represents the fair value of the stock based upon the analysts discretion. We note that future price fluctuations could lead to a temporary mismatch
between upside/downside for stock and our recommendation.
GEPL CAPITAL Pvt Ltd

Reg Office: D-21 Dhanraj mahal, CSM Marg, Colaba, Mumbai 400001
Analyst Certification
The following analysts hereby certify that their views about the companies and their securities discussed in this report are accurately expressed and that they have not received and will not receive direct or
indirect compensation in exchange for expressing specific recommendations or views in this report:
Name : Omkar Tanksale
Sector : Automobile
Disclaimer:
This report has been prepared by GEPL Capital Private Limited ("GEPL Capital "). GEPL Capital is regulated by the Securities and Exchange Board of India. This report does not constitute a prospectus, offering
circular or offering memorandum and is not an offer or invitation to buy or sell any securities, nor shall part, or all, of this presentation form the basis of, or be relied on in connection with, any contract or
investment decision in relation to any securities. This report is for distribution only under such circumstances as may be permitted by applicable law. Nothing in this report constitutes a representation that any
investment strategy, recommendation or any other content contained herein is suitable or appropriate to a recipients i ndividual circumstances or otherwise constitutes a personal recommendation. All
investments involve risks and investors should exercise prudence in making their investment decisions. The report should not be regarded by the recipients as a substitute for the exercise of their own judgment.
Any opinions expressed in this report are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or groups of GEPL Capital as a result of using different
assumptions and criteria. GEPL Capital is under no obligation to update or keep current the information contained herein. The securities described herein may not be eligible for sale in all jurisdictions or to
certain categories of investors. Options, derivative products and futures are not suitable for all investors, and trading in these instruments is considered risky. Past performance is not necessarily indicative of
future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related instrument mentioned in this report.
Any prices stated in this report are for information purposes only and do not represent valuations for individual securities or other instruments. There is no representation that any transaction can or could have
been effected at those prices and any prices do not necessarily reflect GEPL Capitals internal books and records or theoretical model-based valuations and may be based on certain assumptions. Different
assumptions, by GEPL Capital or any other source may yield substantially different results. GEPL Capital makes no representation or warranty, express or implied, as to, and does not accept any responsibility or
liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. Further, GEPL Capital assumes no responsibility to publicly amend, modify or revise
any forward-looking statements, on the basis of any subsequent development, information or events, or otherwise. Neither GEPL Capital nor any of its affiliates, directors, employees or agents accepts any
liability for any loss or damage arising out of the use of all or any part of this report. In no event shall GEPL capital be liable for any direct, special indirect or consequential damages, or any other damages of
any kind, including but not limited to loss of use, loss of profits, or loss of data, whether in an action in contract, tort (including but not limited to negligence), or otherwise, arising out of or in any way
connected with the use of this report or the materials contained in, or accessed through, this report.
GEPL Capital and its affiliates and/or their officers, directors and employees may have similar or an opposite positions in any securities mentioned in this document (or in any related investment) and may from
time to time add to or dispose of any such securities (or investment). The disclosures contained in the reports produced by GEPL Capital shall be strictly governed by and construed in accordance with Indian law.
GEPL Capital specifically prohibits the redistribution of this material in whole or in part without the written permission of GEPL Capital and GEPL Capital accepts no liability whatsoever for the actions of third
parties in this regard.
18

Atul Auto

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Atul Auto

Uploaded by

Copyright:

Available Formats

Equity | India | Automobile

Atul Auto Ltd.

Drive on the clear way.

Market Info (as on July 08, 2015)

Market Cap (`bn)

Free Float (%)

Avg. Daily Volume (NSE)

Face Value / Div. per share (`)

Shares Outstanding (mn)

52.70 6.06 8.46 32.78

Shareholding Pattern (in %)

Share Price Performance

Atul Auto Ltd

Atul Auto (%)

Source: Company data, Institutional Research

+91-22- 6614 2692

Equity | India | Automobile

Institutional Research | Initiating Coverage

Equity | India | Automobile

models and variants,

Auto is today the

Plant. It not only

but also available on

inventor of the most

Journey of Atul Auto

Origin Lie in the 1970s

Integrated plant located

Institutional Research | Initiating Coverage

Equity | India | Automobile

Institutional Research | Initiating Coverage

Equity | India | Automobile

Mr. Vijay K Kedia

Institutional Research | Initiating Coverage

Equity | India | Automobile

Market Share (3W) Domestic FY15 - Passenger

Institutional Research | Initiating Coverage

Equity | India | Automobile

Institutional Research | Initiating Coverage

Equity | India | Automobile

The above chart

Institutional Research | Initiating Coverage

Equity | India | Automobile

Institutional Research | Initiating Coverage

Equity | India | Automobile

Source: Company data,

Institutional Research | Initiating Coverage

Equity | India | Automobile

Source: Company data,

Source: Company data,

Institutional Research | Initiating Coverage

Equity | India | Automobile

Source: Company data,

Source: Company data,

Institutional Research | Initiating Coverage

Equity | India | Automobile

Source: Company data,

Source: Company data,

Institutional Research | Initiating Coverage

Equity | India | Automobile

Entry of the big

Institutional Research | Initiating Coverage

Equity | India | Automobile

Mining the existing and the new clients