RUNNING HEAD: Atlas Battery – Analysis for Investment 1

Atlas Battery – Analysis for Investment

Ghina Fahim Shaikh

17491

Security Analysis
Fall 2021
Azfer Naseem

9th September 2021

RUNNING HEAD: Atlas Battery – Analysis for Investment 2

Introduction
The Auto Allied industry has been an important part in promoting the growth of the economy. It
is considered to be a major part of the manufacturing sector. However, the onset of COVID-19
caused Pakistan rupees to depreciate, raising the interest rates and setting the sales of automobile
to decline. The demand within the battery industry is derived from outage of power and the
expanding automobile sector. The pandemic has created an uncertainty within the market but the
general demand has been forecasted to rise.
The write-up is an amateur analysis based on the recent financial data (FY17-FY21), position in
PSX and various news articles to determine investment opportunities and attractiveness of the
stock.
Company Background
The company, Atlas Battery, was incorporated in the year 1996 and obtained the collaboration
agreement with the company, GS Yuasa, to start trade in Pakistan. The company produces a wide
range of polypropylene batteries which work not only for heavy vehicles and construction
equipment but passenger vehicles and motorcycles. The company has incurred losses ever since
2018, but the performance has comparatively gotten better.
Factors Analyzed and Resources Used
The factors and key areas which have been analyzed consist of earnings, dividend track record,
market cap, profitability – volume and profit margin, debt level, overall value of assets, volume
drivers, price drivers, cost drivers and key trends emerging through relevant data.
The resources which have been used include the recent financial data (FY17-FY21) available
through financial statements published by ATBA, position in PSX and various news articles.
Key Discoveries
 Declined earnings by 45.4% over FY17-FY2021.
 Unstable dividend track record.
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