10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Sunday, June 12, 2011

Atul Auto Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,views and outlook,multibagger

Scripscan:Atul Auto Ltd

Story:Gujarat based Atul Auto Ltd is engaged in production and marketing of 3 wheelers as Passenger carrier as well as Cargo Carrier. Spread over 25 acre land, Atul Auto employs nearly 500 personnel, marketing its 3 wheelers in 12 States including Gujarat, South India, Northern India. Atul is making wide variety of 3 wheelers.Scrip is suggested for investment in view of robustly growing sales, better financial nos,capex to enhance production capacity, much brighter prospects and proposal to foray in LCV by forming some JV with a foreign company.For FY10, Atul had achieved Sales of 120.68 crores and Pat of 3.17 crores. However, company strengthened its marketing/dealer network and tight control over procurement of component etc which has led to sharply improved performance in current year.Atul had sold 13471 vehicles for 9 month ended Dec 2010.It has sold record 5927 vehicles in Q4.Thus sales for FY11 stands at 19398 vehicles which is highest ever in its history.Atul has proposed Right Issue in the ratio of 1:4 @ Rs 30 per share and current price is cum-rights.Rights issue at such low premium is sort of mini-bonus for its shareholders.Atul is expanding its production capacity from current 24000 vehicles to 48000 vehicles.Company will be investing just 30 crores to double its production capacity which is being funded through proposed Rights issue and internal accruals.As against 19398 vehicles sold in FY11,Atul should be able to sell around 26000 vehicles in FY12 ( Impact of doubling of production capacity will be in H2) and in FY13, vehicle sales can further rise to 35,000 vehicles.Atul has also planned to foray in the field of LCVs and plans to tie with some foreign company for the purpose. However,it may take another 3-6 months for this project to take concrete shape.Atul is almost debt-free, has very low overheads and hence its profit margins are on the higher side. Moreover, its equity is quite small.Company should deliver robust results in current fiscal and at present prices the scrip quotes at low single digit PE its forward earnings.Investors may buy and keep this scrip in their core portfolio for next 1-3 years for decent capital appreciation.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner