Atmastco Limited

Sector n/a · NSE

₹306.00−₹1.15 (−0.37%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

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

How does it make money?

Turns over ₹293 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 17.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +21% while net margin moved +23% 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+21%

Margin effect+23%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 13.0% is moderate
✗ ROE has fallen by 10.1 points over the period

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

35/ 100

Expensive

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

16.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 11.7% to 17.1% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 23.1% to 13.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 22.4% to 17.7% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 112% against revenue up 21% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 45% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 47% against revenue up 21% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.7% to 17.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 112% against revenue up 21%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 6.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 23.1% to 13.0%. 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.
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.

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

1EBITDA margin holds above 15%✓ 17.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 5% a year✓ 6.5% CAGR
Latest reported year was 1.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 8 neutral · 1 weak

Market Cap

₹757 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

13.0%

Moderate

Moderate capital efficiency

ROCE

17.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

1.1%

Modest

Modest growth

Profit Growth (YoY)

-1.2%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

46.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

6.5%

Average

Average bottom-line conversion

Current Ratio

1.86

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

116.0 / 131.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹242 Cr	₹224 Cr	₹290 Cr	₹293 Cr	+6.5%
EBITDA	₹28 Cr	₹36 Cr	₹44 Cr	₹50 Cr	+20.8%
EBITDA Margin	11.7%	16.2%	15.0%	17.1%	—
PAT (Net Profit)	₹13 Cr	₹16 Cr	₹19 Cr	₹19 Cr	+14.3%
EPS	₹5.16	₹8.24	₹7.8	—	—
ROE	23.1%	15.1%	15.2%	13.0%	—
ROCE	22.4%	18.8%	18.1%	17.7%	—
Total Debt	₹71 Cr	₹71 Cr	₹74 Cr	₹104 Cr	+13.3%
Free Cash Flow	₹15 Cr	-₹20 Cr	-₹35 Cr	₹0 Cr	-76.9%

🟢 Revenue has grown at 6.5% a year over 3 years.

🟢 EBITDA has grown at 20.8% a year over 3 years.

🟢 EBITDA Margin has risen from 11.7% to 17.1% over 3 years (+5.4 pts).

🟢 PAT (Net Profit) has grown at 14.3% a year over 3 years.

🔴 ROE has fallen from 23.1% to 13.0% over 3 years (-10.1 pts).

🔴 ROCE has fallen from 22.4% to 17.7% over 3 years (-4.7 pts).

🔴 Total Debt has grown at 13.3% a year over 3 years.

🔴 Free Cash Flow has shrunk at 76.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹422 Cr

Total Liabilities

₹276 Cr

Cash & Equivalents

₹20 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹11 Cr

Recent News

2 positive4 general

Atmastco Secures ₹66 Crore Reliance Order; Shares Rise 4.78%

HDFC Sky, 11 SeptOrder 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.

NSE SME stock hits upper circuit despite stock market crash

Livemint, 11 May

Atmastco Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 24 Sept

Atmastco consolidated net profit rises 61.36% in the June 2026 quarter

Business Standard, 15 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Atmastco revises preferential issue allottees for June 6 EGM

scanx.trade, 15 May

Atmastco BIS Certification Boosts Defence Stock Sentiment

HDFC Sky, 12 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑