On the third day of Atmastco Limited’s Initial Public Offering (IPO), the company experienced a solid response from the market, with the issue being subscribed 5.11 times. This level of subscription demonstrates a strong and sustained interest from investors, underscoring their confidence in Atmastco’s business model and future growth prospects.
Atmastco Limited IPO – Fundamental Analysis
Atmastco Limited’s IPO demonstrates exceptional financial growth, with revenue skyrocketing from ₹693,857.53 thousand in 2021 to ₹2,419,505.91 thousand in 2023, indicating robust market demand and business expansion. Equity also increased from ₹391,223.03 thousand to ₹552,033.14 thousand during the same period, showcasing rising investor confidence and potential earnings retention for further development.
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The company’s profitability has notably surged, with profit after tax jumping from ₹6,045.69 thousand in 2021 to ₹127,774.71 thousand in 2023. This remarkable increase is reflected in the enhanced Return on Net Worth (RoNW), which grew from 1.55% to 23.15%, and Diluted EPS, which rose from ₹0.41 to ₹8.63, evidencing the company’s growing profitability and earnings potential. Additionally, the NAV per equity share increased from ₹26.41 to ₹37.27, indicating a rise in the intrinsic value of the shares.
Atmastco Limited IPO Risks And Challenges
Atmastco Limited navigates challenges such as legal uncertainties and dependency on a few major customers, posing risks to stability and growth. Ongoing legal issues with directors could affect reputation and business outcomes. Although they excel in competitive bidding for contracts with their expertise, the unpredictability of winning these projects remains a significant concern.
