Check Before You Invest : Atam Valves Ltd

Snapshot

Q.1 Which industry/sub-sector does Atam Valves Ltd belong to?

Atam Valves Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Atam Valves Ltd a good quality company?

Atam Valves Ltd is a quality company, based on a 9-year financial track record.

Q.3 Is Atam Valves Ltd undervalued or overvalued?

Atam Valves Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Atam Valves Ltd a good buy now?

Atam Valves Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Atam Valves Ltd?

Atam Valves Ltd revenue growth is 15% for FY-2025, which is below its 5-year CAGR of 30.01%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Atam Valves Ltd?

Atam Valves Ltd Return on capital employed is 20.43% for FY-2025, which is in line with its 5-year historical median of 20.43%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Atam Valves Ltd?

Atam Valves Ltd Return on Asset is 12.25%, which is in line with its 5-year historical median of 12.25%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Atam Valves Ltd?

Atam Valves Ltd Return on equity is 18.66% for FY-2025, which is in line with its 5-year historical median of 18.66%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Atam Valves Ltd?

Atam Valves Ltd Cash conversion cycle is 235 days, above its 5-year historical median of 219 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.2	1.2
ROE	18.66	18.66
ROCE	20.43	20.43
Cash Conversion Cycle	235 days	219 days

Q.6 Gross Profit margin of Atam Valves Ltd?

Atam Valves Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.8% for FY-2025, which is in line with its 5-year median of 14.8%, indicating stable margins.

Q.7 Operating Profit Margin of Atam Valves Ltd?

Atam Valves Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.45% for FY-2025, which is in line with its 5-year median of 16.45% indicating stable margins.

Q.8 Net Profit Margin of Atam Valves Ltd?

Atam Valves Ltd Net Profit Margin is 10.41% for FY-2025, is in line with with its 5-year median of 10.41%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	14.8	14.8
Operating Profit Margin	16.45	16.45
Net Profit Margin	10.41	10.41

Q.9 Debt to Equity ratio of Atam Valves Ltd?

Atam Valves Ltd Debt-to-Equity ratio is 0.33, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Atam Valves Ltd?

Atam Valves Ltd Debt to cash flow from operations is -1.8, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Atam Valves Ltd?

Promoters hold 52.29% of the Atam Valves Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Atam Valves Ltd vs industry peers?

Atam Valves Ltd revenue CAGR is 30.01%, compared to the industry median CAGR of 12.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	15	12
Gross Profit Growth	5.4	NAN
Operating Profit Growth	1.5	NAN
Net Profit Growth	8.1	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.2	0.91
ROE	18.66	12.81
ROCE	20.43	15.04
Cash Conversion Cycle (days)	234.58	107

Valuation & price assessment

Q.1 Stock return of Atam Valves Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 27.93% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	27.9%	-28.3%	-30.9%

Q.3 Valuation ratios of Atam Valves Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	21.24	28.87	29.52
Price to Book	2.12	5.41	2.90
Price to Sales	1.6	3.54	2.94
EV to EBITDA	13.41	18.37	15.76

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