The defence industry in India is a significant contributor to the nation’s economy and stock market. The Indian government has been increasing defence spending, potentially leading to increased demand for defence products and services, benefiting defence companies.
Listed below is one such microcap company that manufactures Bulletproof jackets and helmets for the armed forces:
Atmastco Ltd
Price Movement:
With a market capitalization of Rs. 670 crores, the shares of Atmastco started Thursday’s trading session on a lower note at Rs. 253 compared to its previous close of Rs. 257.85. During the trading session, the shares locked a 5 percent upper circuit at Rs. 270.70 apiece.
Financials:
Looking at the company’s financial performance, the revenue decreased by around 7 percent from Rs. 242 crores during FY22-23 to Rs. 224 crores in FY23-24. Contrastingly, the net profits jumped by 23 percent from Rs. 13 crores to Rs. 16 crores during the same timeframe.
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Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 15.13 percent and a return on capital employed (RoCE) of 20.86 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 7.29 percent.
Defence Sector:
Atmastco has diversified its operations into several sectors, including a significant focus on defence through its subsidiary, Atmastco Defence Systems Private Limited.
This subsidiary specializes in the manufacturing of protective gear, specifically bulletproof jackets and helmets for armed forces, as well as full-body protectors designed for female troops.
The company has also entered into licensing agreements with the Defence Research and Development Organization (DRDO) and other defence establishments to enhance its manufacturing capabilities for military applications.
As per reports, the company views its defence business as a contribution to the Atmanirbhar Bharat initiative in the defence sector, as it is only the third company in the country to receive a license for manufacturing bulletproof helmets.
The company is well-positioned to benefit from the Indian government’s push for domestic manufacturing in the defence sector, particularly through initiatives like Make in India and Atmanirbhar Bharat. This environment is expected to create enhanced production opportunities for private companies like Atmastco.
Moreover, Atmastco is also exploring opportunities for exporting its defence products, which could further enhance its market reach and revenue streams.
Customer Base:
Atmastco Limited has a diverse customer base that spans multiple industries, including power plants, refineries, steel plants, railways, cement plants, and water treatment facilities.
The company maintains strong relationships with major clients such as Vedanta Limited, Tata Steel Limited, Adani Group, and Bharat Heavy Electricals Limited (BHEL).
Recently, the company received a letter of intent for fabrication and supply from Bharat Heavy Electricals Limited (BHEL) of Rs. 36 crores for the supply of PG 35 Columns for the NTPC LARA Project through the OVM model.
Company Profile:
Atmastco Limited is a diversified engineering, procurement, and construction (EPC) company based in Bhilai, Chhattisgarh, specializing in turnkey projects, steel fabrication, and defence manufacturing.
Written By Vaibhav Patil
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