ICICI Direct has given a buy rating to Atul Auto with a target price of RS 215. The share price moved up by 3.79% from its previous close of RS 171.50. The stock's last traded price is RS 178.

Atul Auto Ltd., incorporated in the year 1986, is a Small Cap company (having a market cap of Rs 389.49 crore) operating in the Auto sector.

Financials 
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 25.83 crore, down 77.06% from last quarter sales of Rs 112.59 crore and down -82.25% from last year same quarter sales of Rs 145.54 crore. The company reported net profit after tax of Rs -6.78 Crore in the latest quarter.

Investment Rationale
The brokerage values AAL at Rs 215 i.e. 9x P?E on FY20 EPS of 24 and assign a BUY rating. Although the 3-W segment is one of the hardest hit due to social distancing norms amid COVID-19, it is salo different to catch the bottom of the cycle. Hence, at the CMP, AAL provides an attractive risk-reward opportunity with inexpensive valuations, a healthy balance sheet, and sound capital efficiency. Slower than expected ramp-up in future offtake remains a risk to our call. 

Promotors/FIIs Holdings
Promoters held a 52.7% stake in the company as of June 30, 2020, while FIIs held 0%, DIIs 15.2%, and public and others 32.1%.