Had recently been to Puri (Orissa)… Happened to spot an Atul Auto there and so hopped into one. Nudged the auto driver into talking bout his bias, his preferences bout the Auto
His point was : Atul Auto was great but the only problem was theavailabilityof spare parts. He pointed out that there was hardly 10 Atul Auto’s in entire Puri. The drivers still preferred Bajaj, because of mileage and easy availability of spare parts.
Piaggiois not a preferred choice with the Auto Drivers because of similar problems as Atul.
Thanks for the update. I also visited Puri a few months back and these are big business areas for autos. Its only after going to these cities, one realises the potential. At that time I spotted just one Atul auto. It is a new territory for them…they have gone pan India only 2 yrs back and it will take some time to set up the network. Lets see how they execute.
Yes, only recently ATUL auto started showing up in Kerala Market… I saw quite some in central part of kerala. Didnt get a chance to talk to any auto driver about feedback… (Passengerslike BajajDieselAutos over ATUL/ PIAGGIO models)… Hopefully these companies will improve the ride quality…
Atul
Auto Ltd has informed BSE that a meeting of the Board of Directors of
the Company will be held on May 12, 2012, inter alia, to consider and
approve the audited results for the full financial year 2011-2012 (and
also last quarter Jan-March 2012) ended on March 31, 2012, and Board
will also consider, the proposal for recommendation of dividend and
issue of bonus shares, subject to provisions of the Listing Agreement,
Members of the Company, all other applicable laws / Regulations /
Guidelines and also subject to necessary approvals, if required
What could be the impact of Bajaj’s RE60 on three-wheeler industry,majorly passenger-carriers? Could Atul Auto get some good hold after Bajaj Auto has decided to discontinue manufacturing 3-wheelers? Or is Bajaj Auto disrupting the passenger,3-wheeler industry and creating a new turf?
The three wheeler market is extremely price sensitive. We have to wait and watch the relative price point a which Bajaj positions its new product. I personally do not think it poses a threat to the 3 wheeler market.
On 2nd April they had announced on the stock exchanges that sales for January-March 2012 quarter recorded at 7,457 vehicles as compared to 5,927 vehicles during January-March 2011 quarter.
However, today’s financial results show only 4% increase in reported turnover with Sale for quarter ended Mar-12 at Rs.83cr. vs Rs.80 cr. for the quarter ended Mar-11!
Not much difference in profits either if you ignore exceptional expenses of Rs.1.07 cr. in the Mar-11 quarter. Can anyone explain this apparent discrepancy?
I too noticed Atul Auto on Kerala Roads - once near Thrissur, and once near Ashtamudi.
Both times we were driving on the highway and in a hurry, so couldn’t stop to take any real feedback from the drivers.
But it was nice to see the Gem PAX on the roads!! My wife also knows Atul Auto now, thanks to my exclaimations, and wanting to stop on the highway:).Company needs to improve on the looks though, PIaggio PAX looks similar but more sophisticated.
Can someone help me in understanding how bonus issue helps investors if after the issue everyone owns the same % of equity and EPS and Price gets adjusted downwards to reflect the incremental no is shares?
How is Atul looking after the bonus and div announcement?
Year on year growth of 28% while everyone else is registering negative growth - tells us something about gaining market share, isn’t it. I was alluding to that - no images.
if someone can provide baja Auto pax figures - actual market share can be computed.
Bonus issue is always a sentiment booster! And tangible dividends add to it. There are numereous studies done that shows that most stocks trade higher post the bonus allotment. Read the book by Joel Greenblatt!
Thank You Donald. Post bonus alottment or announcement? Atul is already up! So after bonus the stock gets a higher PE without any other changes!
I will speak to a few auto drivers next month when I am in Kochi. Any specific questions other than the ownership costs, running costs and ASS (after sale service:)?
There is a run-up on announcement of course. Studies show that more often than not stocks trade higher on a sustained basis post allotment (although there is no material basis for the same). Can only be attributed to positive sentiment, and if the company keeps doing well, its a good thing going!
Please ask them
1). What made them opt for Atul Auto, despite Piaggio being everywhere. Ask for specifics - mileage, load bearing capacity, additional warranty/insurance
2). What kind of support, after-sales, spares service have they been assured of
3). How many dealers in their locality
4). What has been their post-sale experience so far
5). Why is there demand for 3-wheelers in the locality. Is there more demand for goods carrier or passenger carriers?
Anything that can help you guage product acceptability vis-a-vis market demand is welcome. Where is the demand coming from? why?
I was just going through this post and I would like to clarify a point about the rights issue. I do not think the rights issue was a particularly bad thing to do and it is only detrimental for retail investors if you do not subscribe to it (due to personal financial circumstances, liquidity etc). If all shareholders subscribe to the rights issue then the % shareholding of each shareholder remains the same all though the company has more cash now. So no generosity by management or equity dilution as claimed in an earlier post. Dilution will only result if its a preferential rights issue to a particular group of investors.
However I do question management’s financial acumen in going for a rights issue and paying a high dividend which is a very tax inefficient way of doing things because of dividend tax and rights issue expenses.
Looking at the last annual report the net profit margin has been low historically - has anyone investigated the sustainability of such high profit margins. I believe as the company gets bigger margins should improve due to economies of scale but in a price-sensitive market I’m not sure if the company can pass on increases in engine prices? Any thoughts?
i am very much impressed the way things are being discussed in this forum. Thanks to everyone.
I was just going through 26th June AGM notes where it says share capital of company would be increased from 8 cr to 15 cr and number of shares would reach to 1.5 cr
I have some queries on this:
1 What would be price for these newly added 75 lacs share
2). Would be any follow on IPO or how does it reach to existing share holders
3). If bonus shares are givne in ration of 2:1 than total number of shares would be (1.5 cr + 75 lacs = 2.25 cr after all this?
?