Atlanta Electric (ATLANTAELE)

FairStock Score: 47/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer