Stock Analysis: Atam ValvesAbout: Atam Valves
Atam Valves is a part of AMCO Industries involved in the manufacturing and export of Industrial & Plumbing Valves, Fittings & Boiler Mountings including valves of Gate, Globe, Check, Ball, Butterfly, Steam Traps, Boiler Mountings & Accessories, and other industrial valves and fittings. Clients include Adani, Alps Industries, BHEL, BPCL, BSBK, Driplex, Essar, HPCL, IOCL, IRCTC, NTPC, Thermax, Voltamp, etc.
Fundamental Analysis
Market Cap: ₹ 163 Cr. Stock P/E: 26.1 (Ind. P/E: 49.5)
ROCE: 24.1 %; ROE: 20.8 %
Quarterly Results
Sales (Sep 2024): 16.92 YOY Sales Growth %: 32.60% (Sep 2024)
Operating Profit (Sep 2024): 2.62 OPM % (Sep 2024): 15.48%
Net Profit (Sep 2024): 1.66
Compounded Sales Growth (3 Years): 42%
Compounded Profit Growth (3 Years): 89%
Stock Price CAGR: 84%
Net Cash Flow: 9.96 (Mar 2024)
Cons:
Promoter holding decreased by more than -2% QoQ
Net Profit TTM Growth % : Negative Net Profit TTM Growth %
Negative profit growth, promoters decreasing shareholding QoQ
Low Piotroski Score : Companies with weak financials
Technical Analysis
Atam Valves has been in a downtrend for more than three months.
Even though the Sep 2024 Quarter Income (16.92 Cr.) exceeded Jun 2024 (11.48), it fell below Mar 2024 Income of 17.25 Cr.
It took strong support around 128 levels.
After consolidating between 128 and 134 levels, it gave a strong breakout with good volume.
The downside potentials are limited.
Currently trading near 142 levels.
Resistance levels: 144.5, 155, 188, 226
