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Atam Valves Ltd. (ATAM) AI Stock Analysis

IN:ATAM

Atam Valves Ltd.

(NSE:ATAM)

Select Model
Rating:50.7Neutral
Price Target:INR 51.00â–¼(-8.59% Downside)
Action:reiterated
Date:09/17/26

The overall score is driven mainly by weakening financial performance—margin compression, lower returns on capital, and inconsistent cash conversion—combined with a soft technical setup marked by negative momentum and high volatility. A rich earnings multiple and low dividend yield further constrain upside by offering little valuation or income buffer if fundamentals deteriorate.

Positive Factors
Manageable LeverageManageable leverage provides Atam Valves with a relatively stable capital base and reduces balance-sheet stress compared with a highly indebted manufacturer. Growing equity can support investment and working-capital needs, preserving financial flexibility over the next several quarters.
Negative Factors
Revenue and Margin DeteriorationThe sharp FY2026 revenue contraction and margin compression weaken the company’s near-term earnings base and suggest reduced operating leverage. If this trajectory persists, lower sales absorption and weaker profitability could constrain reinvestment, reduce resilience, and delay recovery in earnings quality.

Atam Valves Ltd. (ATAM) vs. iShares MSCI India ETF (INDA)

-60%-50%-40%-30%-20%-10%0%10%IN:ATAM-45.48%INDA-11.66%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
INR 654.19M
Dividend Yield
0.62%
Average Volume (3M)
2,228
Price to Earnings (P/E)
35.7
Beta (1Y)
1.49
Revenue Growth
-23.10%
EPS Growth
-72.55%
Country
India
Employees
191
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

Atam Valves Ltd. Business Overview & Revenue Model

Company Description

Atam Valves Limited, an Indian company established in 1972 and headquartered in Jalandhar, specializes in the manufacturing and distribution of industrial flow control products. Their comprehensive portfolio includes various valves, fittings, steam t...

How the Company Makes Money

Atam Valves Ltd. primarily makes money by manufacturing and selling industrial valves to business customers (B2B). Key revenue streams typically include: (1) sale of valve products to end-user industries (directly or via distributors/dealers), (2) su...

Atam Valves Ltd. Financial Statement Overview

Summary

Solid historical growth and a moderate debt-to-equity profile are offset by declining margins, weaker returns on capital, and highly volatile, often negative operating and free cash flow.

Income Statement

62Positive

Balance Sheet

59Neutral

Cash Flow

38Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue474.02M472.93M605.00M525.55M490.09M202.70M
Gross Profit134.74M102.85M259.84M233.94M213.19M93.14M
EBITDA41.17M49.22M100.25M97.37M111.24M32.24M
Net Income18.14M24.15M62.99M58.32M76.68M13.66M
Balance Sheet
Total Assets0581.12M540.13M497.71M383.35M198.27M
Cash, Cash Equivalents and Short-Term Investments14.56M14.56M1.99M101.87M2.71M1.85M
Total Debt0149.40M120.86M128.71M71.75M59.53M
Total Liabilities-380.61M200.51M175.43M187.27M133.42M91.41M
Stockholders Equity380.61M380.61M364.70M310.44M249.93M110.08M
Cash Flow
Free Cash Flow0-9.75M-77.90M50.00M-80.35M-861.00K
Operating Cash Flow0-5.60M-65.80M55.80M-71.34M339.00K
Investing Cash Flow0-728.00K-9.01M-5.88M-2.52M-261.00K
Financing Cash Flow018.69M-25.18M49.65M74.18M132.00K

Atam Valves Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price55.79

Price Trends

50DMA55.16Positive
100DMA61.15Negative
200DMA64.86Negative

Market Momentum

MACD-0.76Negative
RSI54.36Neutral
STOCH41.92Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ATAM, the sentiment is Positive. The current price of 55.79 is above the 20-day moving average (MA) of 53.36, above the 50-day MA of 55.16, and below the 200-day MA of 64.86, indicating a neutral trend. The MACD of -0.76 indicates Negative momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 41.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ATAM.

Atam Valves Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

IN:ATAM against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IN:KIRLOSBROSIN:KIRLOSBROS76OutperformINR 127.28B33.82―0.44%10.85%-4.06%
IN:INGERRANDIN:INGERRAND73OutperformINR 127.38B47.54―1.86%8.28%1.08%
IN:SHAKTIPUMPIN:SHAKTIPUMP63NeutralINR 43.61B27.25―0.28%15.77%-60.93%
IN:KSBIN:KSB58NeutralINR 113.26B1.31―0.67%4.63%-4.40%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
IN:ROTOIN:ROTO55NeutralINR 11.07B40.01―0.32%-3.87%-18.80%
IN:ATAMIN:ATAM51NeutralINR 639.52M35.70―0.62%-23.10%-72.55%

* General Sector Average

Performance Comparison

-40%-20%0%20%IN:ATAMIN:INGERRANDIN:KIRLOSBROSIN:KSBIN:ROTOIN:SHAKTIPUMPDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
IN:ATAM and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IN:ATAMAtam Valves Ltd.55.79-46.55-45.48%
IN:INGERRANDIngersoll-Rand (India) Limited4035.25302.828.11%
IN:KIRLOSBROSKirloskar Brothers Ltd.1602.85-251.09-13.54%
IN:KSBKSB Ltd.650.75-118.50-15.40%
IN:ROTORoto Pumps Limited58.76-9.64-14.10%
IN:SHAKTIPUMPShakti Pumps (India) Limited353.40-453.84-56.22%

Atam Valves Ltd. Corporate Events

Atam Valves Schedules 41st AGM, Publishes Statutory Notices

Aug 30, 2026

Atam Valves Ltd. has announced that its 41st Annual General Meeting will be held on September 24, 2026, at noon in physical mode at Hotel Radisson in Jalandhar, Punjab. The company has published statutory AGM notices in Punjabi and English newspapers...

Atam Valves Sets AGM, Dividend Record Date and Clears Board Resolutions

Aug 29, 2026

Atam Valves Ltd.’s board has approved its directors’ report for the year ended March 31, 2026, and set September 16, 2026 as the record date to determine shareholder eligibility for a proposed final dividend at its 41st AGM. The board als...

Atam Valves Sets Dividend Record Date, Clears Board Reappointments and Higher Borrowing Powers

Aug 29, 2026

Atam Valves Ltd.’s board has approved its directors’ report for the financial year ended 31 March 2026 and set 16 September 2026 as the record date to determine shareholder eligibility for a proposed final dividend. The company also sched...

Atam Valves Sets September 24, 2026 for 41st AGM with Remote E-Voting

Aug 29, 2026

Atam Valves Ltd. has scheduled its forty-first Annual General Meeting for September 24, 2026, to be held in physical mode at a venue in Jalandhar, Punjab. The company has appointed Central Depository Services (India) Ltd. to provide remote e-voting f...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 17, 2026