Atam Valves Ltd. (ATAM) AI Stock Analysis

• Market Cap: ₹1.02B
• Dividend Yield: 0.95%
• Average Volume (3M): 10.32K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.07
• Revenue Growth: 14.36%
• EPS Growth: 8.87%
• Country: IN
• Employees: 196
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.08
• Shares Outstanding: 11,463,000
• 10 Day Avg. Volume: 21,113
• 30 Day Avg. Volume: 10,319
• PEG Ratio: 2.76
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 1.60
• P/FCF Ratio: -12.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹94.00
• Price Target Upside: 5.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ₹94.00 ▲(5.45% Upside)

The overall stock score of 61 reflects a balanced view of Atam Valves Ltd. The company's strong revenue growth and profitability are offset by negative cash flow trends and bearish technical indicators. The valuation is fair, but the lack of positive momentum and liquidity concerns weigh on the stock's attractiveness.

Atam Valves Ltd. Business Overview & Revenue Model

Company Description

Atam Valves Ltd. (ATAM) is a leading manufacturer specializing in industrial valves and fittings. The company operates within the industrial manufacturing sector, offering a comprehensive range of products including ball valves, gate valves, globe valves, check valves, and various fittings. These products serve critical roles in industries such as oil and gas, petrochemicals, water treatment, and power generation, where precision and reliability are paramount.

How the Company Makes Money

ATAM generates revenue primarily through the design, manufacture, and sale of its extensive range of industrial valves and fittings. The company's key revenue streams include direct sales to industrial clients, distribution through authorized dealers, and long-term supply contracts with major corporations in sectors like oil and gas, petrochemicals, and water utilities. Additionally, ATAM may engage in strategic partnerships with global distributors to enhance its market reach. The company's earnings are significantly influenced by industry demand, technological advancements in valve manufacturing, and its ability to maintain competitive pricing and high-quality standards.

Atam Valves Ltd. Financial Statement Overview

Summary

Atam Valves Ltd. demonstrates strong revenue growth and consistent profitability, though recent declines in EBIT margin and negative cash flow trends highlight areas for improvement. The balance sheet reflects moderate leverage, balancing debt with equity. While the company shows potential for growth, attention to cash flow management is necessary to ensure continued financial stability.

Income Statement

The company has shown impressive revenue growth over the years, with a notable increase from 2022 to 2025. The gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. However, the decline in EBIT margin from 2024 to 2025 suggests potential pressures on operating efficiency.

Balance Sheet

The debt-to-equity ratio is moderate, suggesting a balanced approach to leverage. The company's return on equity has been stable, reflecting consistent value generation for shareholders. However, the equity ratio indicates a moderate reliance on debt to finance assets.

Cash Flow

The company faces challenges with negative free cash flow in recent years, signaling potential liquidity issues. The operating cash flow has turned negative in 2025, which could impact future financial flexibility. Despite these challenges, there was a positive free cash flow in 2024.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	613.87M	605.00M	525.55M	490.09M	202.70M	183.12M
Gross Profit	287.39M	259.84M	233.94M	213.19M	93.14M	81.01M
EBITDA	105.88M	100.25M	97.37M	111.24M	32.17M	24.31M
Net Income	66.07M	62.99M	58.32M	76.68M	13.66M	8.74M
Balance Sheet
Total Assets	0.00	540.13M	497.71M	383.35M	195.75M	181.76M
Cash, Cash Equivalents and Short-Term Investments	2.10M	2.65M	101.87M	2.71M	1.85M	1.62M
Total Debt	0.00	120.86M	128.71M	71.75M	59.53M	45.58M
Total Liabilities	-364.70M	175.43M	187.27M	133.42M	85.66M	82.07M
Stockholders Equity	364.70M	364.70M	310.44M	249.93M	110.08M	99.69M
Cash Flow
Free Cash Flow	0.00	-77.90M	50.00M	-80.35M	-861.00K	1.45M
Operating Cash Flow	0.00	-65.80M	55.80M	-71.34M	339.00K	17.39M
Investing Cash Flow	0.00	-9.01M	-5.88M	-2.52M	-261.00K	-14.82M
Financing Cash Flow	0.00	-25.18M	49.65M	74.18M	132.00K	-2.51M

Atam Valves Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 89.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ATAM, the sentiment is Negative. The current price of 89.14 is below the 20-day moving average (MA) of 89.95, below the 50-day MA of 92.13, and below the 200-day MA of 103.09, indicating a bearish trend. The MACD of -0.95 indicates Negative momentum. The RSI at 43.92 is Neutral, neither overbought nor oversold. The STOCH value of 9.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ATAM.

Atam Valves Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGIND	64 Neutral	₹1.55B	9.80	―	0.96%	0.77%	24.23%
SOMICONVEY	64 Neutral	₹1.90B	31.91	―	―	11.62%	26.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ATAM	61 Neutral	₹1.02B	15.46	―	0.95%	14.36%	8.87%
HILTON	53 Neutral	₹1.08B	18.69	―	―	4.60%	-7.17%