Atul Auto Limited

[Sanyam mittal]

Atul Auto Ltd. began its operations in 1992 at Rajkot, Gujarat and was founded by Late Mr. Jagjivanbhai Karsanbhai Chandra. Being a relatively younger player in the automobile industry, Atul Auto cleared all the hurdles and has become one of the fastest growing players in the 3 wheeler segment. The company has an expanded production capacity of 60,000 units at its Rajkot plant. Local level innovations and process re-engineering are the major factors behind this expansion. The company has been conferred with "IndiaMart - Leaders of Tomorrow Award 2013" in Auto Components sector of West Zone presented by ET Now. 


The growth rate of Atul Auto Limited has been below par for the last couple of quarters. In FY2015-16, the revenue growth has been around 6.5% till now. This is much lower than the overall 14.5% sales growth in FY2014-15. However, the top management seems to be confident and say that they expect sales growth to touch double figures in the remaining part of the finanical year. What is your take on this?

[Equity Section]

Well...whole of auto industry is facing pressure. It was surprising that Atul Auto had a good run in terms of sales growth for the past three or four years.

You can mainatain a sheet on their monthly sales. Auto companies disclose their sales in terms of volumes monthly. That way you can be able to know whether the first half of the year is lukewarm and second half gets traction. Or...there is a real slowdown in terms of sales volumes.

Apart from that, if the margins are the same and they haven't compressed, then, in my opinion, the Company is doing fine and it just the effect of industry slowdown which should be temporary....because ood compaies often outrun their counterparts in the industry.

Continue asking more questions...

Oct 7, 2015 19:44:06 GMT 5.5 Sanyam mittal said:

Atul Auto Ltd. began its operations in 1992 at Rajkot, Gujarat and was founded by Late Mr. Jagjivanbhai Karsanbhai Chandra. Being a relatively younger player in the automobile industry, Atul Auto cleared all the hurdles and has become one of the fastest growing players in the 3 wheeler segment. The company has an expanded production capacity of 60,000 units at its Rajkot plant. Local level innovations and process re-engineering are the major factors behind this expansion. The company has been conferred with "IndiaMart - Leaders of Tomorrow Award 2013" in Auto Components sector of West Zone presented by ET Now. 


The growth rate of Atul Auto Limited has been below par for the last couple of quarters. In FY2015-16, the revenue growth has been around 6.5% till now. This is much lower than the overall 14.5% sales growth in FY2014-15. However, the top management seems to be confident and say that they expect sales growth to touch double figures in the remaining part of the finanical year. What is your take on this?