#ATULAUTO: PAT 136%. ROCE Doubled. FCF Positive. Why Atul Auto Has My Attention.
What Company does? Atul Auto makes three-wheelers -passenger and cargo auto rickshaws
The FY26 results just dropped. And they're loud ๐
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Volumes: 38,449 units, up 13%. Real demand, not pricing tricks.
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PAT more than doubled: โน18 Cr โ โน43 Cr
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EBITDA Margin: 10.29% vs 7.59% ( 271 bps)
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ROCE jumped from 6.4% โ 10.5%
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Free Cash Flow doubled - cash generation doubled, not just paper profits.
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Debt/Equity at just 0.29x - virtually debt-free balance sheet
A clean balance sheet doubling profits expanding margins improving cash generation.
My take ๐
A company growing PAT over 100%, with margins expanding, D/E of just 0.29x, and trading at a PE of ~33?
That's not expensive. That's mispriced. It's a BUY.
๐ข Entry: Added at โน495 for long term
๐ Stoploss: โน470
๐ฏ View: Long term hold
Disclaimer: This is my personal view, not investment advice. Markets are risky. Do your own research before investing.