Ather Energy Ltd.
ISIN: INE0LEZ01016 • Market Cap: ₹56,754 Cr
The 5-Pillar Quality Audit for Ather Energy Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (-7.2%), Return on Capital Employed (-12.9%), and equity compounding (—).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.21 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (34.3%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of — vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 40.7%, backed by 45.5% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 34.3%)
Revenue has expanded at 34.3% CAGR over 3 years, signaling industry market-share gains.
Deep Institutional Sponsorship (45.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 45.5%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: -12.9%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Sectoral & Macro Headwinds (Automobile and Auto Components)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Automobile and Auto Components space.
Quantitative Strategy Eligibility
Checking ATHERENERG against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 59/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Automobile and Auto Components Sector Peer Comparison
Compare ATHERENERG directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Ather Energy Ltd. (ATHERENERG)Current | 59/100 | ₹56,754 Cr | — | -12.9% | 0.21 | — |
| Maruti Suzuki India Ltd. (MARUTI) | 71/100 | ₹4.30 Lakh Cr | 30.02 | 15.6% | 0.00 | View |
| Mahindra & Mahindra Ltd. (M&M) | 72/100 | ₹4.24 Lakh Cr | 22.97 | 16.6% | 1.43 | View |
| Bajaj Auto Ltd. (BAJAJ-AUTO) | 77/100 | ₹3.22 Lakh Cr | 27.34 | 25.4% | 0.57 | View |
| Eicher Motors Ltd. (EICHERMOT) | 74/100 | ₹2.19 Lakh Cr | 37.86 | 23.7% | 0.01 | View |
| TVS Motor Company Ltd. (TVSMOTOR) | 68/100 | ₹2.07 Lakh Cr | 60.46 | 29.9% | 3.31 | View |
Frequently Asked Questions: Ather Energy Ltd.
Q:What is the 5-Pillar Fundamental Score for Ather Energy Ltd. (ATHERENERG)?
Ather Energy Ltd. has a RupeeTools Fundamental Score of 59/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (23/100), Financial Health (73/100), Growth (99/100), Valuation (15/100), and Ownership Quality (82/100).
Q:Is ATHERENERG fundamentally strong for long-term investment?
ATHERENERG currently holds a moderate quality rating of 59/100. While it operates in the Automobile and Auto Components sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does ATHERENERG pass the Coffee Can Investing filter?
No. ATHERENERG does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ATHERENERG compare against other Automobile and Auto Components peers?
Within India's Automobile and Auto Components sector, ATHERENERG trades at a P/E of — and generates an ROCE of -12.9%. Compare its 5-Pillar score of 59/100 against top sector peers like Maruti Suzuki India Ltd. (71/100), Mahindra & Mahindra Ltd. (72/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.