Atul Auto

Repeat Call---Buy Atul Auto-531795, Results on 30th May 2011. Expect EPS of 17 approx. against EPS of 7.8 approx last year. More than 100% growth.. Price should move 10-15% on or after results.

CMP--119, buy at this levels, dividend of 2 rs possible and Short term player can target 135-145 levels in next 1-2 months and long term player can hold and reap benefit.

It is planning to acquire Scooter India also..hence any news on that will also trigger the prices...

Results performance we will update on 31st May.

More details below about the company....(repeating last details we mentioned in june 2010)

Sunday, June 13, 2010
Atul Auto
Atul Auto Ltd is one of the fast growing Diesel Three wheeler manufacturers in India located at Rajcot, in Saurashtra. Late Mr. Jagjivanbhai Karsanbhai Chandra of ATUL GROUP was pioneered in the concept “CHADKA”, an affordable mode of transportation for common man in India. Company's Rajcot plant having production capacity of 24000 vehicle per annum in single shift basis.In 2009, Atul has introduced its all-new rear
engine three-wheeler, under the brand name ATUL GEM, which is one of the best selling three wheelers in India presently. Atul GEM is a reliable vehicle, which gives a fuel economy of 35 kmpl and has a payload capacity of 585 Kg. Recently Company expanded its operations into 6-seater Auto Rickshaws, Pick-Up Vans and Chassis of Passenger Vehicles.Atul planning to develop more innovative, environment-friendly and practical automobile vehicles considering changes in market trends.These includes CNG and LNG operated vehicles, 4- wheeler one tunner LCVs ..etc For sourcing engines for its CNG / LNG vehicles, company already signed an agreement with Lombardini. In 2010 company is planning an additional capex of Rs.20 Cr to expand its production capacity to 36000 units per year. Company aggressively expanded its marketing network in South India last year and result of the same clearly visible in recent financial performance. Company has registered a phenomenon financial performance for the financial year 2009-10 with company’s net profits zooming up by around 1000% from Rs.46 lakh to Rs.4.54 crore over the year ended March 2009. On an equity capital of Rs 6.08 crore, EPS stood at Rs. 7.76. The company has recommended a final dividend of Rs 2 per share for the year ended March 2010. In a segment where cut throat competition is prevailing, by fighting with biggies like Piaggio,Bajaj,Mahindra ..etc ,ATUL is coming out as a winner mainly
because of the quality of vehicle offered at reasonable price, well planned marketing strategy and overall commitment of management. At the prevailing market price of Rs. 71/- this stock is available at below 10 prices to earnings ratio.
Considering the company’s well accepted vehicle, strong distribution net work, dividend pay-out track record and its ambitious plans to enter 4 wheeler and CNG and LNG running vehicles, one may look into it with a long term view