CMP: 425

Atlas Cycles Limited manufactures and distributes bicycles, as well as related bike components and accessories. The Company also produces steel tubes which are sold to ancillaries of major automobile companies in India.

Atlas Cycles is a 138 Crore penny cap stock. Its currently trading at a P/E of 34 with decent dividend yields of 1% in the last 12 months. It runs at a debt of 87 Crores with 106 Crores in inventories. Revenues have steadily picked up from 484 Crores to 783 Crores in the last 5 years. Profits have picked up from 2 Crores to 4 Crores in the last 4 years. NPM has increased marginally from 40 basis points to 52 basis points. Government increased customs duty on bicycle parts this budget and the stock has been spiking since. Buy with short term perspective and book profits at higher levels.