Atlanta Electricals Limited

Industrials — Electrical Equipment & Parts · NSE

₹1,700.00−₹11.30 (−0.66%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Atlanta Electricals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Atlanta Electricals Limited engages in the manufacture and sale of transformers to institutional and corporate customers in India. Its products include power, auto, inverter duty, generator, furnace, and transformers. It also provides after-sales support services.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees505

Annual revenue₹1,826 Cr

How does it make money?

Turns over ₹1,826 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 505 employees supports ₹3.62 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.62 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 32.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.7% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 31.7% and earnings to grow about 47.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+31.7%

Est. earnings growth+47.5%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +110% while net margin moved +10% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+110%

Margin effect+10%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

75/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

69/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

29.5x

1.3Y Median

62.6x

15 monthly readings · mean 75.4x · range 49.0x–127.8x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 53% below its 1.3y median of 62.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 67% below the peer median of 88.8x.

vs. its own history

Cheap

62.6x median over 15 months · -53%

vs. sector peers

Cheap

88.8x median of 3 peers · -67%

vs. generic bands

Fair

15x–35x

EV/EBITDA

39.0x

PEG

0.92

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 14.8% to 18.4% over 3 years.
Debt is being paid down
Total debt is down 31% over 3 years.
Cash generation is improving
Free cash flow is up 51% over 3 years.
High return on capital employed
ROCE of 32.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 53.0% to 21.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 71.0% to 32.2% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 5.46x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 32.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 14.8% to 18.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 31% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 53% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 67% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 5.46x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 53.0% to 21.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 21% a year✓ 28.1% CAGR
Latest reported year was 48.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹68 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 29%✓ 32.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹13,072 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.5x

Fair

Fairly valued against the generic band

P/B Ratio

14.07x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹57.54

Profitable

Profitable on a per-share basis

ROE

21.7%

Strong

Strong capital efficiency

ROCE

32.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.46x

High

High leverage

Revenue Growth (YoY)

48.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

70.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹68 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

32.2x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

14.4%

Average

Average margins

Net Margin

10.9%

Good

Strong bottom-line conversion

Current Ratio

1.69

Comfortable

Healthy short-term liquidity

52W Range Position

69%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1728.9 / 1739.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹869 Cr	₹854 Cr	₹1,225 Cr	₹1,826 Cr	+28.1%
EBITDA	₹129 Cr	₹109 Cr	₹177 Cr	₹336 Cr	+37.6%
EBITDA Margin	14.8%	12.7%	14.5%	18.4%	—
PAT (Net Profit)	₹87 Cr	₹64 Cr	₹119 Cr	₹202 Cr	+32.1%
EPS	₹12.22	₹8.87	₹15.43	₹27.17	+30.5%
ROE	53.0%	27.8%	33.9%	21.7%	—
ROCE	71.0%	43.9%	38.1%	32.2%	—
Total Debt	₹74 Cr	₹49 Cr	₹146 Cr	₹51 Cr	-11.8%
Free Cash Flow	₹45 Cr	₹56 Cr	-₹30 Cr	₹68 Cr	+14.8%

🟢 Revenue has grown at 28.1% a year over 3 years.

🟢 EBITDA has grown at 37.6% a year over 3 years.

🟢 EBITDA Margin has risen from 14.8% to 18.4% over 3 years (+3.6 pts).

🟢 PAT (Net Profit) has grown at 32.1% a year over 3 years.

🟢 EPS has grown at 30.5% a year over 3 years.

🔴 ROE has fallen from 53.0% to 21.7% over 3 years (-31.3 pts).

🔴 ROCE has fallen from 71.0% to 32.2% over 3 years (-38.9 pts).

🟢 Total Debt has shrunk at 11.8% a year over 3 years.

🟢 Free Cash Flow has grown at 14.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,509 Cr

Total Liabilities

₹579 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹184 Cr

Capex

-₹116 Cr

Shareholding (proxy)

Institutional Holding

4.9%

Insider Holding

87.3%

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,890

+11.2% vs CMP

Target Range

₹1,830 – ₹1,950

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive1 mixed4 general

Atlanta Electricals (NSEI:ATLANTAELE) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

ATLANTA ELECTRICALS Share Price News After 5.41% Drop

Univest, 16 Oct

Atlanta Electricals, one year on: Did the stock earn its price?

Value Research, 28 Sept

ATLANTAELE Stock Price and Chart — NSE:ATLANTAELE

TradingView, 22 Aug

Atlanta Electricals: Best Stock in Its Sector? Key Metrics

Univest, 23 Sept

Atlanta Electricals secures ₹194 crore order for 12 high-capacity transformers

Livemint, 18 AugOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑