Atul Auto share price: Buy Atul Auto, target price Rs 305: Emkay Global

Emkay Global has buy call on Ltd. with a target price of Rs 305. The current market price of Atul Auto Ltd. is Rs 227.4. Time period given by analyst is one year when Atul Auto Ltd. price can reach defined target.

Atul Auto Ltd., incorporated in the year 1986, is a Small Cap company (having a market cap of Rs 499.76 Crore) operating in Auto sector.

Atul Auto Ltd. key Products/Revenue Segments include Automobile – 3 Wheelers, Spare Parts & Others, Commission, Other Operating Revenue, Export Incentives and Scrap for the year ending 31-Mar-2021.

Financials

For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 86.06 Crore, up 165.37 % from last quarter Total Income of Rs 32.43 Crore and up 11.75 % from last year same quarter Total Income of Rs 77.01 Crore. Company reported net profit after tax of Rs -4.51 Crore in latest quarter.

Investment Rationale
Atul continues its efforts to strengthen its market presence by: 1) increasing penetration in CNG/LPG segments; 2) improving credit access through its finance arm; 3) increasing presence in key export markets; 4) launching new products; and 5) expanding distribution reach. Retain Buy with a Dec’22 TP of Rs305 (Rs300 earlier), based on 10x Dec’23E EPS (Sep’23E earlier).


Promoter/FII Holdings
Promoters held 52.7 per cent stake in the company as of 30-Sep-2021, while FIIs owned 0.03 per cent, DIIs 0.59 per cent.

(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.

Source Link