Stock Analysis: Atam Valves

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About: Atam Valves
Atam Valves is a part of AMCO Industries involved in the manufacturing and export of Industrial & Plumbing Valves, Fittings & Boiler Mountings including valves of Gate, Globe, Check, Ball, Butterfly, Steam Traps, Boiler Mountings & Accessories, and other industrial valves and fittings. Clients include Adani, Alps Industries, BHEL, BPCL, BSBK, Driplex, Essar, HPCL, IOCL, IRCTC, NTPC, Thermax, Voltamp, etc.
Fundamental Analysis
Market Cap: ₹ 163 Cr. Stock P/E: 26.1 (Ind. P/E: 49.5)
ROCE: 24.1 %; ROE: 20.8 %
Quarterly Results
Sales (Sep 2024): 16.92 YOY Sales Growth %: 32.60% (Sep 2024)
Operating Profit (Sep 2024): 2.62 OPM % (Sep 2024): 15.48%
Net Profit (Sep 2024): 1.66
Compounded Sales Growth (3 Years): 42%
Compounded Profit Growth (3 Years): 89%
Stock Price CAGR: 84%
Net Cash Flow: 9.96 (Mar 2024)
Cons:

• Promoter holding decreased by more than -2% QoQ
  
• Net Profit TTM Growth % : Negative Net Profit TTM Growth %
  
• Negative profit growth, promoters decreasing shareholding QoQ
  
• Low Piotroski Score : Companies with weak financials
  

Technical Analysis

• Atam Valves has been in a downtrend for more than three months.
  
• Even though the Sep 2024 Quarter Income (16.92 Cr.) exceeded Jun 2024 (11.48), it fell below Mar 2024 Income of 17.25 Cr.
  
• It took strong support around 128 levels.
  
• After consolidating between 128 and 134 levels, it gave a strong breakout with good volume.
  
• The downside potentials are limited.
  
• Currently trading near 142 levels.
  
• Resistance levels: 144.5, 155, 188, 226