Atlanta Electric (ATLANTAELE)
Fast GrowerFairStock Score: 47/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,680.8 |
| Market Cap | ₹12,924.78 Cr |
| P/E Ratio | 57.46 |
| ROCE | 50.2% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 125.33% |
| Debt/Equity | 0.05 |
| Sales Growth | 48% |
| Promoter Holding | 87.27% |
| 52-Week Range | ₹707.6 — ₹2,200 |
| Sector | Electrical Equipment |
| Book Value | ₹120.84 |
Strengths
- Revenue and profit growth are exceptional: sales up 79.71% and profit up 125.33%.
- ROCE of 50.20% with debt-to-equity of 0.46 shows strong capital efficiency and manageable leverage.
- Piotroski F-Score of 7/9 suggests solid financial health.
- Promoter holding of 87.27% aligns interests and reduces floating supply.
Concerns
- P/E of 46.10 and P/B of 33.15 leave very little margin of safety.
- Zero dividend and book value of ₹48.88 mean returns depend almost entirely on future growth.
- Heavy electrical equipment is cyclical; high growth may reverse sharply.
- FairStock Score of 44/100 is MIXED, and the 52-week range of ₹707.60–₹2,200 shows high volatility.
AI Analysis
Atlanta Electric offers a classic tension: an excellent operator at a price that leaves little room for error. The latest quarter sales of ₹472 Cr and net profit of ₹49 Cr underscore momentum, and full-year sales growth of 79.71% with profit growth of 125.33% is the kind of compounding that initially attracts attention. ROCE at 50.20% is genuinely exceptional for heavy electrical equipment, and debt-to-equity of 0.46 is not scary. The Piotroski F-score of 7/9 supports the idea that the business is healthy. But I buy a business, not a share certificate, and the price must provide margin of safety. At ₹1,620.55, I am paying 46.10 times earnings and 33.15 times book value. The recorded net asset base is only ₹48.88 per share. That means almost all the value lies in future growth, not in tangible assets or a dividend yield, which is zero, to protect me while I wait. Heavy electrical equipment is tied to capital spending and is cyclical. A 79.71% growth rate is hard to sustain; when the order cycle cools, earnings may revert faster than optimism does. The 52-week range, ₹707.60 to ₹2,200.00, shows how violently this stock has swung. Long-term, a wonderful business can be a poor investment if bought at too high a price. I would want to see several years of order book stability, conversion of growth into cash, and a much lower multiple before putting the Graham-Buffett lens of margin of safety on Atlanta Electric. It may be a fast grower, but it is not a value-at-price I would endorse.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer