Company overview—
Atlas Cycle (Haryana) Ltd. is India's second-largest cycle manufacturer. It is also one of the largest exporters of bicycles. It has units at Sonepat, Sahibabad, Rasoi and Gurgaon, all in Haryana. Atlas Cycles Industries Ltd was incorporated in 1950, the company started making bicycle saddles in 1951, and the first bicycle was produced in 1952.The name of the company was changed to Atlas Cycles (Haryana) Ltd in March 2001. Atlas introduced the first racing bicycle and the first geared bicycle in the country. Atlas is today ranked amongst the largest bicycle manufacturers in the world. It is the second largest manufacturer of bicycles in the country after Hero Cycles Ltd.
Products & services—
Company has three well-integrated Bicycle plants to meet the rising domestic and international demands as well as five ancillary units for manufacturing components. It has manufacturing facilities at Sonapet, Rasoi, Sahibabad and Gurgaon near Delhi. To meet its entire steel tube requirements the Atlas Steel Tube mill was set up at Gurgaon. Atlas cycles as well as components are exported to over 35 countries among them are advance countries like Italy, Holland, U.K., Japan and Australia.
It has a task force of over 5000 professionals. Atlas has been involved in setting up large cycle plants in countries like Tanzania, Zambia and others. It is the first Indian bicycle industry to get ISO-9002 accreditation. The company is working on a plan to produce new generation bicycles made of materials such as carbon fibre and titanium in India with a European partner for catering to the European market. It has also chalked out a restructuring plan for increasing the profit margin through backward integration.
Financials—
Quarterly results for jan-mar 2009
| Description | Amount(Rs. in lakhs) |
| Net Sales/Income from Operations | 17948.00 |
| Other Operating Income | - |
| Consumption of Raw Materials | 264.00 |
| Purchase of traded goods | 13920.00 |
| Depreciation | 759.00 |
| Other Expenditure | 147.00 |
| Total Expenditure | 2548.00 |
| Profit before Other Income, Interest & Exceptional Items | 17638.00 |
| Interest | 170.00 |
| Profit after Interest but before Exceptional Items | 73.00 |
| Exceptional items | 97.00 |
| Tax Expense | 97.00 |
| Other Related Items | 10.00 |
| Consolidated Net Profit for the period | 325.00 |
| Basic EPS before Extraordinary items (in Rs.) | 2.98 |
| Diluted EPS before Extraordinary items (in Rs.) | 1649989.00 |
| Basic EPS after Extraordinary items (in Rs.) | 50.74 |
| Diluted EPS after Extraordinary items (in Rs.) | 50086.00 |
| Public Shareholding (%) | .15 |
| Promoter & Promoter group Shares Pledged | 96.87 |
Valuation—
At CMP, stock is trading at 10.27 P/E multiple of its financial year 2010 estimated earnings. We recommend investors to buy “Atlas Cycles (Haryana) Limited” with medium to long term investment horizon.
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