Atul Auto Ltd Initiating Coverage Report By IndiaNivesh

Atul Auto is the only pure play 3‐W manufacturer in India. With ~17.9% share in the goods carrier segment and 5% share in the passenger carrier segment, the key brands of the Company are Shakti, Smart, Gem and Gemini. Despite challenging macro environment the company has performed well in last couple of years (25% CAGR growth in revenue and 21% CAGR growth in volume from FY11 – FY15). Volume have been improving on the back of added dealerships and increasing geographic presence (especially in Semi Rural and Rural area) along with market share gains in existing markets. We believe with further capacity addition and new petrol product launch, Atul can efficiently tap export markets along with urban markets in India and, thereby, continue the strong growth momentum. The entry into petrol segment, increasing capacity and overseas footprint could lead to faster growth in market share in the coming years.

Atul-Auto-Initiating-Coverage-Sep-2015