Atlas Cycles (Haryana) Limited

Consumer Cyclical — Leisure · NSE

₹91.30−₹1.10 (−1.19%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Atlas Cycles (Haryana) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Atlas Cycles (Haryana) Limited manufactures and sells bicycles in India. The company was formerly known as Atlas Cycle Industries Ltd and changed its name to Atlas Cycles (Haryana) Limited in April 2002. The company was incorporated in 1950 and is based in Sonepat, India.

IndustryLeisure

SectorConsumer Cyclical

Employees26

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹-116 reaches shareholders as profit, with ₹-85 left at the operating level before interest, tax and depreciation. Each of its 26 employees supports ₹26.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-84.7%

Net margin-116.4%

Revenue / employee₹26.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of -1.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE-1.9%

ROE-2.1%

Peer median ROE25.9%

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 +299% while net margin moved -91% 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+299%

Margin effect-91%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.16x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -760.5% to -84.7% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.55 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.37x — earnings must service borrowings before shareholders see anything.
🔴The company is lossmakingFinancial
Net profit of -₹8 Cr in the latest reported year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.55 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -760.5% to -84.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.37x. Interest is payable whether or not the business has a good year.
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
Micro 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 44% a year✓ 58.6% CAGR
Latest reported year was -22.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -87%✓ -84.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -1.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 2 neutral · 7 weak

Market Cap

₹59 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.16x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-11.97

Loss-making

Negative earnings per share — the business is losing money

ROE

-2.1%

Weak

Weak capital efficiency

ROCE

-1.9%

Weak

Low return on total capital employed

Debt/Equity

2.37x

High

High leverage

Revenue Growth (YoY)

-22.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-184.5%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹91.3

Operating Margin

-125.0%

Weak

Thin margins leave little room for error

Net Margin

-129.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.55

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

92.7 / 95.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹6 Cr	₹9 Cr	₹7 Cr	+58.6%
EBITDA	-₹13 Cr	-₹29 Cr	₹11 Cr	-₹6 Cr	—
EBITDA Margin	-760.5%	-461.6%	115.1%	-84.7%	—
PAT (Net Profit)	-₹23 Cr	₹1 Cr	₹10 Cr	-₹8 Cr	—
EPS	₹-35.82	₹0.83	₹14.63	₹-12.36	—
ROE	—	0.1%	2.5%	-2.1%	—
ROCE	—	0.2%	2.3%	-1.9%	—
Total Debt	₹9 Cr	₹9 Cr	₹9 Cr	₹9 Cr	+0.0%
Free Cash Flow	-₹5 Cr	-₹51 Cr	-₹1 Cr	₹2 Cr	—

🟢 Revenue has grown at 58.6% a year over 3 years.

🟢 EBITDA Margin has risen from -760.5% to -84.7% over 3 years (+675.8 pts).

🔴 ROE has fallen from 0.1% to -2.1% over 3 years (-2.3 pts).

🔴 ROCE has fallen from 0.2% to -1.9% over 3 years (-2.0 pts).

🟡 Total Debt has been broadly flat over 3 years (0.0% a year).

🟢 Free Cash Flow has turned positive, from -₹5 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹483 Cr

Total Liabilities

₹103 Cr

Total Debt

₹9 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

48.9%

Corporate Actions

Ex-Dividend Date

19 Sept 2013

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 mixed4 general

Atlas Cycles (Haryana) Share Price Target 2026: Rs 120 Analyst Forecast

Univest, 18 JunAnalyst view

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

Atlas Cycles (Haryana) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Atlas Cycles (Haryana) Limited Extends Land Sale Transaction Deadline to June 2026

scanx.trade, 14 Apr

Atlas Cycles (Haryana) Ltd (NSE: ATLASCYCLE) Share Price Jumps 16%: Can the Rally Sustain?

Kalkine India, 13 AprPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Volume Gainers on September 8, 2026 at 4:00 PM

HDFC Sky, 08 Sept

Atlas Cycles (Haryana): 7 Stock Signals to Watch

Univest, 22 Sept

Watch Items

Revenue growth is negative (-22.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak4.3/20

🔴Financial HealthStretched8.3/20

🟢GrowthStrong13/20

🔴ProfitabilityWeak1.3/15

🟡ValuationFair7.1/15

🔴RiskHigh3.9/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 44% a year58.6% CAGR
✓EBITDA margin holds above -87%-84.7%
✓Free cash flow remains positive₹2 Cr
✗ROCE stays above 8%-1.9%