Check Before You Invest : Atlanta Infrastructure and Finance Ltd

BSE: 530479 NSE: ISIN: INE433D01027

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Atlanta Infrastructure and Finance Ltd belong to?

Atlanta Infrastructure and Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Atlanta Infrastructure and Finance Ltd a good quality company?

Atlanta Infrastructure and Finance Ltd is a quality company, based on a 3-year financial track record.

Q.3 Is Atlanta Infrastructure and Finance Ltd undervalued or overvalued?

Atlanta Infrastructure and Finance Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Atlanta Infrastructure and Finance Ltd a good buy now?

Atlanta Infrastructure and Finance 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 Total Income growth of Atlanta Infrastructure and Finance Ltd?

Atlanta Infrastructure and Finance Ltd Operating Income growth is NA% for FY-2023, which is in line with its 3-year CAGR of NA%, indicating stable growth.

Q.2 Return on Assets of Atlanta Infrastructure and Finance Ltd?

Atlanta Infrastructure and Finance Ltd Return on Asset is -0.3%, which is below its 3-year historical median of -0.2%, indicating deteriorated earnings on assets.

	Current Level	3-year Historic Median
NPM%	-	-1.91
PPOP%	-	-25
RoA%	-0.3	-0.2

Q.3 Return on Equity (ROE) of Atlanta Infrastructure and Finance Ltd?

Atlanta Infrastructure and Finance Ltd Return on Equity is -0.3% for FY-2023, which is below its 3-year historical median of -0.2%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Atlanta Infrastructure and Finance Ltd?

Atlanta Infrastructure and Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -0% for FY-2023, which is above its 3-year median(-25%), indicating increasing margins.

Q.5 Net Profit Margin of Atlanta Infrastructure and Finance Ltd?

Atlanta Infrastructure and Finance Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 0% for FY-2023, which is above its 3-year median( -1.91%), indicating increasing margins.

Q.6 Total Asset growth of Atlanta Infrastructure and Finance Ltd?

Atlanta Infrastructure and Finance Ltd Total Asset growth is 2.8% for FY-2023, which is above its 3-year CAGR of 0%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Atlanta Infrastructure and Finance Ltd?

Promoters hold 0.00% of the Atlanta Infrastructure and Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Atlanta Infrastructure and Finance Ltd vs Industry Peers?

Atlanta Infrastructure and Finance Ltd AUM CAGR is 0%, compared to the 3-year industry median CAGR of 9.12%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Atlanta Infrastructure and Finance Ltd vs industry peers

Atlanta Infrastructure and Finance Ltd profit metrics are in line with the industry median level of 2.74%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	3-year Industry Median
NPM%	-	14.65
PPOP%	-	-7.54
RoA%	-0.3	1.1

Q.3 Operating efficiency of Atlanta Infrastructure and Finance Ltd vs industry peers?

Atlanta Infrastructure and Finance Ltd ROCE (-0.3) is below the industry median of (2.1); while the current ROE (-0.2) are below than the 5-year average Industry ROE (1.9). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	3-year Industry Median
NPM%	-	14.65
PPOP%	-	-7.54
RoA%	-0.3	1.1
ROCE%	-0.3	2.1
ROE%	-0.3	1.9

Valuation & price assessment

Q.1 Stock return of Atlanta Infrastructure and Finance Ltd over the last decade?

Over the last - years, the stock has delivered a CAGR of N/A% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	-	-	33.22
Price to Book	7.09	7.09	1.01
Price to Sales	-	-	15.19
EV to EBITDA	-2798.86	-2798.86	10.00

Q.4 Valuation ratios of Atlanta Infrastructure and Finance Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 7.09% is similar than its historical median of 7.09%, indicating that at the current price the stock is fairly valued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Atlanta Infrastructure and Finance Ltd return on invested capital (ROIC) is -0.26% for FY-2023, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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