Company Update - Atul Auto - ICICI Direct

Atul Auto's subsidiary Atul Greentech unveiled EV-3-Ws Atul Mobili and Atul Energie in Auto Expo 2023. Atul Mobili is a passenger 3-W while Atul Energie is a Cargo 3-W with driving range of 110 km, 195 km, respectively

In the recent past, in Q2FY23, Atul turned in the black with positive EBITDA margin and PAT reading amid a gradual recovery in 3-W sales volume

The company, in the recent past, also executed preferential issuance of warrants (i.e. 58,08,080 warrants convertible into one equity share @ Rs. 198 per share) to promoters & non promoters of company, with total equity raise pegged at Rs. 115 crore. The company has received 25% against such a sum of ~Rs. 29 crore as of November 2022. The money is raised to retire debt with net debt on standalone basis at the company at ~Rs. 75 crore as of FY22

Key triggers for future price performance

- On a low base, we build ~35%, ~45% volume, revenue CAGR, respectively, over FY22-25E with PAT expected at ~Rs. 46 crore by FY25E

- Official launch and competitive pricing of captive electric-3-W (fixed battery)

- Collaboration with Honda Power to explore battery swapping solutions for electric-3-Ws and Valeo for electric powertrain

- Recent equity raise to taper debt on b/s while higher utilisation to spur margins, RoCE to ~8% and ~12% levels, respectively, by FY25E

For details, click on the link below: Link to the report

Shares of Atul Auto Limited was last trading in BSE at Rs. 342.05 as compared to the previous close of Rs. 358.90. The total number of shares traded during the day was 97253 in over 2859 trades.

The stock hit an intraday high of Rs. 359.00 and intraday low of 338.00. The net turnover during the day was Rs. 33680825.00.

Source : Equity Bulls

Keywords

AtulAuto INE951D01028 ProductLaunch AutoExpo2023 EV 3Wheelers ICICIDirect