IPO Analysis of Atmastco Ltd

What Atmastco Limited Do?

The latest IPO, is turnkey/EPC contractor that offers multidisciplinary services & project management solutions in ferrous & non-ferrous industries.

Atmastco also manufactures massive fabrication structures & range of precise equipment for use in numerous industrial applications.

Upcoming IPO’s products are Followings

Atmastco IPO products are widely used in construction of Power & Energy, Steel Plants, Cement Plants, Railway Bridges, Water Treatment Plants, Refinery & Fertilizer plants, & Pre-Engineered Building.

Best IPO are made of strong financial performances, if not exceedingly well above peer then at least over averages steadily growth in each finance metrics this upcoming IPO hitting every nail in coffin. Let’s delve into this blog find out what makes it to TOP IPO, if not Best IPO.

Atmastco Limited Financial Analysis

Analysis

Assets

1. There has been consistent growth in assets over periods, indicating company's expansion & investment in resources.
2. Sharp increase from FY22 to FY23 suggests significant capital expenditure/acquisitions.
3. Slight increase from FY23 to August 2023 indicates ongoing investment activities.

Revenue

1. Revenue has shown substantial growth from FY21 to FY23, indicating strong top-line performance.
2. However, there was significant decline in revenue from FY23 to Aug 2023, which may be cause for concern & warrants further investigation into company's operational performance during this period.

Profit After Tax (PAT)

1. Shown consistent growth from FY21 to FY23, indicating improving bottom-line performance.
2. PAT Decreases from FY23 to Aug 2023 might attributed to various factors such as increased expenses/one-time charges.

Net Worth

1. Net worth has steadily increased over periods, reflecting company's overall financial health & value.
2. Growth in net worth indicates that company's assets exceed its liabilities, which is positive sign for investors.

Reserves & Surplus

1. Reserves & surplus have shown consistent growth over periods, indicating retained earnings & strong financial position.
2. This growth suggests that company has been profitable & able to reinvest its earnings into business.

Total Borrowing

1. It has increased over periods, suggesting company has utilized debt to fuel its growth/ operations.
2. While moderate borrowing can be healthy for growth, investors should monitor trend to ensure it remains manageable & does not strain company's finances.

Overall, company has shown strong growth in key financial metrics such as assets, revenue, & net worth over years, indicating positive performance & potential for future growth. However, decline in revenue & profit after tax in most recent period requires further analysis to understand underlying reasons & implications for company's financial health & future prospects.

Atmastco ltd. Key Performance Indicator

Analysis

Return on Equity (ROE)

1. ROE measures profitability of company relative to its shareholders' equity.
2. There has been significant increase in ROE from FY21 to FY23, indicating improved profitability & efficiency in generating returns for shareholders.
3. Rising ROE suggests that company is effectively utilizing its equity to generate profits, which is positive signal for investors.

Return on Capital Employed (ROCE)   

1. ROCE measures efficiency & profitability of company's capital investments.
2. Similar to ROE, there has been notable increase in ROCE from FY21 to FY23, indicating enhanced efficiency in utilizing capital to generate profits.
3. Rising ROCE indicates that company is generating higher returns from its capital investments, which is favourable for shareholders.

D/E Ratio

1. D/E ratio assesses company's leverage & financial risk by comparing its debt to its equity.
2. Ratio has increased from FY21 to FY23, indicating higher reliance on debt financing relative to equity.
3. While higher ratio can indicate increased financial risk, it could also signify strategic borrowing for growth opportunities. Investors should monitor this ratio to ensure it remains within manageable levels.

Return on Net Worth (RoNW)

1. RoNW is similar to ROE & measures profitability of company relative to its net worth.
2. Trend in RoNW mirrors that of ROE, showing significant increase from FY21 to FY23.
3. This suggests that company's profitability relative to its net worth has improved over years, indicating stronger financial performance & value creation for shareholders.

Conclusion

Overall, key performance indicators demonstrate positive trends in profitability, efficiency, & financial health over years. Investors should be encouraged by improving ROE, ROCE, & RoNW, indicating company's ability to generate returns & create value. However, increasing D/E ratio warrants attention to ensure prudent financial management & sustainable growth.