Accumulate Atul Auto; target of Rs 396: Dolat Capital
Dolat Capital recommended accumulate rating on Atul Auto with a target price of Rs 396 in its research report dated November 05, 2018.
November 12, 2018 / 04:33 PM IST
Dolat Capital's research report on Atul Auto
Atul Auto (ATA) top line growth was in-line with our estimates at ` 1,765 mn but margins were lower due to higher other expenditure. ATA reported volume growth of 9.5% at 12,224 units which were largely driven by higher exports. Domestic volumes grew by 4.4% YoY whereas the exports reported a growth of 76% YoY in Q2FY19. ATA also declared an interim dividend of ` 2.75.
Further price increase and better operating mix will be the key thing to watch going forward. Underperformance to the industry weighs down on valuations. Maintain Accumulate with a target price of ` 396.
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