Atul Auto Ltd (ATULAUTO) AI Stock Analysis

• Market Cap: ₹11.43B
• Dividend Yield: N/A
• Average Volume (3M): 48.39K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.75
• 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: ₹424.00 ▼(-7.53% 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

Strong revenue recovery

A 35.94% year-over-year revenue increase signals durable demand recovery for Atul Auto's three-wheeler products and expanded market traction. Sustained top-line growth supports scale economics, dealer network strength and provides room to invest in product development and distribution over the medium term.

Improved cash generation

Material improvement in operating cash flow and a 0.78 free-cash-flow-to-net-income ratio indicate the business is converting earnings into cash more effectively. This enhances capacity to fund capex, service debt, and support working capital through cycles, improving financial resilience over coming quarters.

Conservative leverage and strong equity base

A low debt/equity ratio and a 64.8% equity ratio show conservative financing and a solid capital structure. That reduces solvency risk, preserves borrowing capacity, and gives management flexibility to pursue growth or weather industry cyclicality without overreliance on external funding.

Negative Factors

Thin profitability margins

Low net and operating margins limit surplus cash and leave little buffer against rising input costs or pricing pressure. Persistent thin margins constrain reinvestment, reduce ability to scale profitably, and make sustaining ROE and shareholder returns difficult if competitive or commodity pressures re-emerge.

Low return on equity

A sub-5% ROE signals limited capital efficiency versus peers and may indicate the business struggles to generate attractive returns on invested equity. Over time, low ROE can hamper investor confidence and restrict internal funding for growth initiatives without improving margins or asset turnover.

Cash-flow volatility and rising debt

Although cash generation improved recently, past volatility combined with an increase in total debt raises sustainability concerns. If cash flows revert or industry demand softens, higher debt could pressure coverage ratios and limit strategic flexibility over the next several quarters.

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 primarily makes money from the sale of three-wheeler vehicles. Its key revenue stream is domestic wholesale/retail sales of passenger carriers and cargo carriers to dealers/distributors, fleet operators, and individual owner-drivers, with revenues recognized from vehicle sales. A secondary revenue stream comes from exports of three-wheelers to international markets where the company has distribution arrangements. Additional earnings can come from sale of spare parts and after-sales support through its service/dealer network (to the extent these activities are reported as revenue). The company’s profitability is influenced by vehicle volumes, product mix (passenger vs. cargo and fuel/powertrain variants offered), pricing, input costs, distribution reach, and demand conditions in last-mile passenger and small-cargo transport markets.

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	7.54B	7.23B	5.23B	4.66B	3.07B	2.90B
Gross Profit	1.41B	1.10B	1.29B	968.60M	662.70M	510.70M
EBITDA	623.00M	548.20M	399.20M	376.20M	-160.30M	-62.30M
Net Income	270.20M	216.30M	89.80M	40.00M	-249.40M	-81.80M
Balance Sheet
Total Assets	7.35B	6.80B	6.55B	6.09B	5.45B	3.88B
Cash, Cash Equivalents and Short-Term Investments	391.50M	250.60M	428.50M	205.60M	62.20M	177.90M
Total Debt	1.45B	1.10B	1.44B	1.71B	1.88B	156.90M
Total Liabilities	2.78B	2.34B	2.27B	2.56B	2.69B	877.10M
Stockholders Equity	4.53B	4.41B	4.20B	3.48B	2.77B	3.00B
Cash Flow
Free Cash Flow	-199.70M	169.40M	-94.30M	-246.00M	-1.79B	7.80M
Operating Cash Flow	-149.70M	334.80M	-7.90M	-176.50M	-1.69B	520.90M
Investing Cash Flow	-280.30M	87.00M	-137.90M	-235.10M	41.60M	-600.40M
Financing Cash Flow	303.60M	-450.30M	304.70M	388.50M	1.64B	141.10M

Atul Auto Ltd Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ATULAUTO, the sentiment is Negative. The current price of 458.55 is below the 20-day moving average (MA) of 464.48, above the 50-day MA of 450.06, and below the 200-day MA of 461.71, indicating a bearish trend. The MACD of -12.55 indicates Positive momentum. The RSI at 34.69 is Neutral, neither overbought nor oversold. The STOCH value of 7.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹276.89B	16.68	―	0.22%	14.54%	126.08%
HEROMOTOCO	72 Outperform	₹1.07T	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	₹11.43B	19.88	―	―	20.23%	57.66%
OLAELEC	43 Neutral	₹104.14B	-7.78	―	―	―	―
HINDMOTORS	38 Underperform	₹2.91B	1,557.49	―	―	-87.98%	-83.04%

Atul Auto Ltd Corporate Events

Atul Auto inducts veteran automotive expert K.C. Vora as independent director

Atul Auto Ltd has appointed Dr. Kamalkishore C. Vora as an additional non-executive independent director effective 15 March 2026, for a term of three years subject to shareholder approval. The appointment follows a recommendation by the Nomination and Remuneration Committee and complies with SEBI’s latest disclosure requirements.

Dr. Vora brings over four decades of experience across the automotive industry and academia, including senior roles at Mahindra & Mahindra and the Automotive Research Association of India, and currently leads the Automotive CoE at NAMTECH. His expertise in vehicle technology, skills development and electric vehicles is expected to strengthen Atul Auto’s board oversight and support its strategic positioning amid evolving industry and regulatory trends.

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.