Synopsis:
Atul Auto shares are in focus after it reported a stellar Q1 performance. Profit grew 171% and Revenue grew 13 percent on a year-on-year basis. Vijay Kedia is a notable investor in the firm.
The shares of this leading Auto manufacturer are in focus after a robust financial performance. In this article, we will dive more into the details of the highlights of its business in this financial year.
With a market capitalization of Rs 1,249 crores, the shares of Atul Auto Ltd are currently trading at Rs 449 per share, representing a 38 percent decline from its 52-week high of Rs 723 per share.
Over the past five years, the stock has delivered a positive return of 169 percent. Vijay Kedia (self), and through his investment arm (Kedia Securities Private Limited), holds a total of 20.91 percent stake in the company.
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Q1 Highlights
Atul Auto’s revenue for Q1 FY26 came in at Rs 152.78 crore, registering a 13 percent growth from Rs 135.21 crore in the same quarter last year. However, on a sequential basis, revenue declined by 28 percent from Rs 211.14 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 171 percent to Rs 2.06 crore in Q1 FY26 as compared to Rs 76 lakh in Q1 FY25. However, on a QoQ basis, it declined by 65 percent from Rs 5.89 crore.
The company showcased impressive year-on-year growth across both of its business segments. Revenue from the Automobiles Business climbed to Rs 141.64 crore, a notable increase from Rs 125.72 crore during the same quarter last year, which translates to a 12.6 percent growth.
Also, the Non-Banking Financial Business brought in Rs 12.88 crore in revenue, up from Rs 10.71 crore in Q1 FY25, reflecting a robust 20.2 percent increase compared to the previous year.
The stock delivered an ROE and ROCE of 4.23 percent and 6.52 percent respectively, and is currently trading at a high P/E of 63.62x as compared to its industry average of 35.65x.
Atul Auto Ltd is engaged in the manufacture and sale of three-wheelers for passenger and cargo use (including e-rickshaws and delivery vehicles) powered by diesel, petrol, CNG, LPG, and electric engines. Its products are sold under the brands Atul RIK, Gem, Elite, and Shakti, and are exported to markets in Asia, Africa, and Latin America.
Written by Satyajeet Mukherjee
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