Atul Auto Ltd (ATULAUTO) AI Stock Analysis

• Market Cap: ₹13.23B
• Dividend Yield: N/A
• Average Volume (3M): 48.39K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.72
• Revenue Growth: 20.23%
• EPS Growth: 57.66%
• Country: IN
• Employees: 474
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 5.53
• Shares Outstanding: 27,751,280
• 10 Day Avg. Volume: 20,202
• 30 Day Avg. Volume: 48,392
• PEG Ratio: 0.54
• Price to Book (P/B): 3.45
• Price to Sales (P/S): 2.11
• P/FCF Ratio: 89.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹441.00 ▼(-3.83% Downside)
• Action: Reiterated Date: 11/12/25
• Date: Action: Reiterated 11/12/25

Atul Auto Ltd's overall stock score is influenced primarily by its financial performance, which shows a positive recovery trajectory. However, technical analysis indicates a neutral to slightly bearish trend, and the high P/E ratio suggests potential overvaluation. The absence of a dividend yield further impacts the valuation negatively. The lack of earnings call and corporate events data means these factors did not contribute to the score.

Positive Factors

Revenue recovery and growth

A 35.9% revenue rebound shows strengthening demand for core products and improving go-to-market execution. Sustained top-line growth enhances scale economics, supports dealer margins and product investment, and creates a clearer path to durable margin expansion if maintained.

Improved cash generation

Strong operating cash flow and a 0.78 FCF-to-net-income conversion indicate the business is turning earnings into cash. Durable cash generation lowers reliance on external financing, funds working capital and capex, and provides flexibility to invest in distribution or product upgrades.

Conservative leverage and strong equity base

Low leverage and a high equity ratio give the company financial resilience through cyclicality common in autos. This balance sheet strength supports capital allocation for product development, geographic expansion or absorbing input-cost shocks without forcing distressed financing.

Negative Factors

Thin net profitability

A low net margin and modest ROE constrain internal capital for growth and limit buffers against cost inflation. Persistently thin profitability makes the business sensitive to commodity cycles and competitive pricing, reducing long-term reinvestment capacity and shareholder returns.

Rising absolute debt

Although leverage ratios remain moderate, rising total debt increases refinancing and interest-rate exposure. If operating cash flows re-soften, higher absolute debt could pressure liquidity and force trade-offs between capex, dealer support and debt servicing over the medium term.

Concentration in three-wheeler segment

Heavy dependence on three-wheelers concentrates revenue in a single product class tied to last-mile passenger and small-cargo demand. This structural concentration increases vulnerability to regulatory, fuel-technology shifts or intensified competition, limiting diversification benefits over time.

Atul Auto Ltd Business Overview & Revenue Model

Company Description

Atul Auto Limited manufactures and sells three wheeler automobiles in India. The company offers passenger and cargo carrier, e-rickshaw, and delivery vans, as well as parts and accessories. Its products are diesel, petrol, CNG, LPG, and electric fueled vehicles. The company offers its products under the Atul RIK, Atul Shakti, Atul Smart, Atul Gem, Atul Gemini, and Atul Elite brand names. Atul Auto Limited also exports its products to Bangladesh, Nepal, Cambodia, Myanmar, South Africa, the United Kingdom, Ethiopia, Liberia, Sierra Leone, Tanzania, Ecuador, Bolivia, Guatemala, Honduras, and Mexico. The company was incorporated in 1986 and is headquartered in Rajkot, India.

How the Company Makes Money

Atul Auto generates revenue primarily through the sale of its three-wheeler vehicles, which are marketed under various brand names. The company's revenue model is based on manufacturing and selling vehicles to dealers who then sell them to end customers. Key revenue streams include the direct sale of three-wheelers, spare parts, and servicing of vehicles. Additionally, the company may engage in partnerships with financing institutions to facilitate vehicle loans for customers, which can boost sales. Factors such as strong brand recognition, an expanding distribution network, and a focus on expanding production capacity also contribute to its overall earnings.

Atul Auto Ltd Financial Statement Overview

Summary

Atul Auto Ltd is on a recovery trajectory with improved revenue and profitability metrics. The balance sheet reflects a stable equity position with manageable debt levels. Cash flows have shown significant improvement, but historical volatility suggests the need for careful financial management. While the company is progressing well, maintaining consistent performance and managing debts will be key to sustaining growth.

Income Statement

Atul Auto Ltd has shown a notable recovery in its income statement over the past year. The company achieved a gross profit margin of 26.71% and a net profit margin of 3.04% in 2025, indicating improved cost management and profitability. Revenue growth of 35.94% from 2024 to 2025 reflects strong sales performance. While EBIT and EBITDA margins are at 4.82% and 7.72% respectively, the company still faces challenges in maintaining higher profitability levels compared to past years.

Balance Sheet

The balance sheet of Atul Auto Ltd shows a moderate financial position. The debt-to-equity ratio stands at 0.25, indicating manageable leverage. Return on equity is 4.91%, reflecting a moderate return for shareholders. The equity ratio is a strong 64.80%, signifying substantial equity financing. However, the total debt has increased, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis indicates a positive turnaround with operating cash flow at 334.8 million in 2025. The free cash flow to net income ratio is 0.78, suggesting decent cash generation relative to earnings. Free cash flow growth is strong compared to the previous year, indicating improved financial health. However, past fluctuations in cash flow highlight potential risks in sustaining these levels.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.39B	7.23B	5.23B	4.66B	3.07B	2.90B
Gross Profit	1.35B	1.10B	1.29B	968.60M	662.70M	510.70M
EBITDA	569.20M	548.20M	399.20M	376.20M	-160.30M	-62.30M
Net Income	232.60M	216.30M	89.80M	40.00M	-249.40M	-81.80M
Balance Sheet
Total Assets	0.00	6.80B	6.55B	6.09B	5.45B	3.88B
Cash, Cash Equivalents and Short-Term Investments	198.30M	250.60M	428.50M	205.60M	62.20M	177.90M
Total Debt	0.00	1.10B	1.44B	1.71B	1.88B	156.90M
Total Liabilities	-4.47B	2.34B	2.27B	2.56B	2.69B	877.10M
Stockholders Equity	4.47B	4.41B	4.20B	3.48B	2.77B	3.00B
Cash Flow
Free Cash Flow	0.00	169.40M	-94.30M	-246.00M	-1.79B	7.80M
Operating Cash Flow	0.00	334.80M	-7.90M	-176.50M	-1.69B	520.90M
Investing Cash Flow	0.00	87.00M	-137.90M	-235.10M	41.60M	-600.40M
Financing Cash Flow	0.00	-450.30M	304.70M	388.50M	1.64B	141.10M

Atul Auto Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 458.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ATULAUTO, the sentiment is Neutral. The current price of 458.55 is below the 20-day moving average (MA) of 483.50, above the 50-day MA of 450.78, and below the 200-day MA of 464.12, indicating a neutral trend. The MACD of 12.25 indicates Positive momentum. The RSI at 51.23 is Neutral, neither overbought nor oversold. The STOCH value of 45.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ATULAUTO.

Atul Auto Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FORCEMOT	75 Outperform	₹307.72B	16.68	―	0.22%	14.54%	126.08%
HEROMOTOCO	72 Outperform	₹1.12T	22.77	―	2.90%	5.18%	27.60%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ATULAUTO	56 Neutral	₹13.23B	19.88	―	―	20.23%	57.66%
OLAELEC	43 Neutral	₹106.17B	-7.78	―	―	―	―
HINDMOTORS	38 Underperform	₹3.11B	1,557.49	―	―	-87.98%	-83.04%

Atul Auto Ltd Corporate Events

Atul Auto Attributes Surge in Share Trading Volume to Market Forces, Reaffirms Full Disclosure

Atul Auto Limited has responded to a query from the National Stock Exchange of India regarding a significant increase in trading volume in its shares, stating that it has already disclosed all events and information that could affect its operations or performance in compliance with SEBI’s Listing Obligations and Disclosure Requirements. The company maintains that the recent surge in volume is entirely due to market-driven conditions, emphasizes that no material price-sensitive information has been withheld, and reiterates its ongoing commitment to regular, timely disclosure, a stance aimed at reassuring regulators and investors about transparency and adherence to corporate governance norms.

Atul Auto Appoints BBM & Associates as Internal Auditor for FY 2025-26

Atul Auto Limited has appointed M/s. BBM & Associates, a Jamnagar-based proprietary chartered accountancy firm, as its internal auditor for the financial year 2025-26, following the approval of its Board and Audit Committee. The appointment, effective 15 January 2026, is aimed at strengthening the company’s internal audit and risk management framework by leveraging BBM & Associates’ experience in corporate finance, auditing, SAP-ERP environments, and sector-diverse assurance services, signaling an emphasis on governance and compliance for stakeholders.

Atul Auto Share Volume Surge Triggers Exchange Query

Trading activity in Atul Auto Ltd’s shares has surged, prompting the stock exchange to seek clarification from the company on the reasons behind the significant increase in volume. The exchange has stated that it is awaiting a response, highlighting its intention to ensure investors have up-to-date, relevant information and to safeguard investor interests amid the unusual market activity.