📌 At a glance:
Atlas Cycles (Haryana) just dropped a ₹951 lakh net profit in FY25 — a massive swing from the scrapyard of previous years. Revenue hit ₹2,880 lakh, and EPS stands at ₹14.63 (adjusted: ₹12.75). CMP hit ₹128 after a 5% UC. Is this the return of India’s OG bicycle king, or just a nostalgia rally with training wheels?
🏢 About the Company
- Founded: 1950, Sonepat (Haryana)
- Legacy: Once India’s largest bicycle manufacturer, exporting globally
- Brands: Atlas, Super, Atlas Goldline
- Fun Fact: Atlas sponsored the Indian Olympic team… in the ’80s
Once a household name. Then COVID broke the supply chain, and Atlas became the next Lehman of Ludhiana.
👨🔧 Key Managerial Personnel
| Name | Role |
|---|---|
| C.M. Dhall | Whole-Time Director |
| Kartik Roop Rai | Director |
| Rashpal Singh | Company Secretary |
| Dinesh Nangru & Co. | Auditor (Modified Opinion) |
💣 Audit remarks? 5 major qualifications including missing interest provisions, unrecorded audit fees, export discrepancies, and ERP crashes. Basically… accounting on Excel, praying on Tally.
📊 Financial Highlights (FY25)
| Metric | FY25 (₹ Lakh) | FY24 (₹ Lakh) | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹1,714 | ₹636 | 🚀 +170% |
| Other Income | ₹1,165 | ₹1,010 | 🔼 +15.3% |
| Total Income | ₹2,880 | ₹1,646 | 🚀 +75% |
| Expenses | ₹1,929 | ₹1,853 | 🔼 +4% |
| Net Profit (Reported) | ₹951 | ₹53 | 🤯 +1693% |
| EPS (Basic) | ₹14.63 | ₹0.83 | 🧨 17x |
| EPS (Adjusted) | ₹12.75 | NA | 🧮 Lowered due to audit findings |
🎯 From losses to profits with nothing but scrap sales, asset revaluation, and no-cost finance. Atlas doing yoga-level financial flexibility.
📜 Balance Sheet Breakdown
| Item | FY25 (₹ Lakh) | FY24 (₹ Lakh) |
|---|---|---|
| Total Assets | ₹47,882 | ₹48,225 |
| Net Worth | ₹38,765 | ₹37,803 |
| Borrowings | ₹900 | ₹900 |
| Trade Payables | ₹5,104 | ₹6,182 |
| Cash & Bank Balance | ₹81.04 | ₹43.58 |
🧾 5 years of unpaid audit fees, unaccounted interest on inter-corporate loans, and still showing a profit? That’s not accounting — that’s a Netflix drama waiting to happen.
🔍 Audit Qualifications (Brace Yourself)
- Interest Not Provided: ₹99 lakh interest expense ignored
- Unpaid Statutory Audit Fees: ₹1.39 crore total outstanding
- Export Advances Not Disclosed under FEMA: ₹43 lakh missing
- Default on Inter-Corporate Loans: But not booked
- ERP Server Crashed → Shifted to Tally: Yes, seriously
🤯 Basically, auditors said “you made a profit, sure, but we’re not buying it.”
🔥 EduInvesting Take
Is this a turnaround? Maybe.
Is it clean? Absolutely not.
Is it juicy? Oh hell yes.
Is it investable? We’re not SEBI registered — but we’d recommend watching this one like a hawk on wheels.
⚠️ Earnings came mostly from “other income” — not bicycle sales. And yet, the market is lapping it up like a Tour de France feed zone.
💸 Cash Flow Highlights
- Net Operating Cash: ₹(-65 lakh)
- Net Investing Cash: ₹132 lakh (from asset sales)
- Net Cash at Year End: ₹81 lakh
- No fresh capital raised
- No interest paid despite loans
🧯 Cash flow survived by selling old equipment. Sustainability? Nope.
💰 Fair Value Calculation (Loosely Held)
- Adjusted EPS: ₹12.75
- Fair PE for troubled manufacturing: 8x
- Fair Value Estimate: ₹102
📈 CMP ₹128 → Already trading at 10x, priced like a cycling revival is guaranteed.
🧠 Final Thoughts
Atlas Cycles is back in the headlines with a vintage-style financial pump:
- ✅ Positive EPS
- ✅ Balance sheet still intact
- ❌ Auditor red flags everywhere
- ❌ Real operations remain shaky
- ❌ EPS inflated via “other income”
It’s not a stock — it’s an emotional trigger for 90s kids. But until we see meaningful bicycle sales and debt clearance, this 5% UC feels like a ride on thin tires.
Author: Prashant Marathe
Date: May 24, 2025
