Buy Atul Auto, target price Rs 250: Emkay Global

Emkay Global has buy call on Atul Auto with a target price of Rs 250. The current market price of Atul Auto Ltd. is Rs 171.7. 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 372.27 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 31-03-2022, the company reported a Consolidated Total Income of Rs 94.98 Crore, down -8.01 % from last quarter Total Income of Rs 103.25 Crore and up 3.74 % from last year same quarter Total Income of Rs 91.56 Crore. Company reported net profit after tax of Rs -5.73 Crore in latest quarter.

Investment Rationale
Atul continues its efforts on: 1) increasing penetration in CNG/LPG segments; 2) improving credit access through its finance arm; 3) strengthening presence in key export markets; 4) launching new products in EV space; and 5) expanding its distribution reach. It retains Buy with a TP of Rs250 (unchanged), based on 10x Jun’24E EPS (10x Mar’24E EPS earlier).

Promoter/FII Holdings
Promoters held 52.7 per cent stake in the company as of 31-Mar-2022, while FIIs owned 0.13 per cent, DIIs 0.2 per cent.