atam valves ltd share price Management discussions


Our Company was originally incorporated as "Atam Valves Private Limited" on September, 30th, 1985 under the provisions of the Companies Act, 1956 vide Certificate of Incorporation issued by the Registrar of Companies, Punjab & Chandigarh. Later on, the company got converted into public limited company and the name of the company was changed to – "Atam Valves Limited" and fresh Certificate of Incorporation dated November 24th, 2017 was issued by the Registrar of the Companies, Punjab & Chandigarh. Atam Valves Limited is one of the leading manufacturers of Valves, Cocks & Boiler Mountings in India. We are also an ISO 9001: 2008, ISO 14001: 2004, and CE Monogram and PED approved company & winner of National Award 2006 for quality and National Award 2009 for entrepreneurship Govt. of India. Ever since inception in 1972 , our brand names ATAM & FEBI emerged as formidable names in Bronze , Brass , Cast Iron , Cast Steel , Forged Steel , S.S. Valves & cocks , conforming to various National & International standards . We are pioneers in developing Ball Valves in India and enjoy a strong Brand image. ATAM VALVES are suitable for industrial and domestic applications as well as for controlling a wide variety of service Rs.uids, Oil & steam, within various pressure & temperature ranges. "ATAM" products are approved by various quality institutions including bureau of Indian Standards. Indian Boiler Regulations and enjoy an active patronage of numerous Government and eminent Industrial houses in India & International Market.


Global Economy

The global economy is facing a slowdown in 2023, after a modest recovery in 2022 from the pandemic-induced recession. The main factors that are weighing on the global growth prospects are:

•The ongoing war between Russia and Ukraine, which has disrupted the energy supply and trade in Europe and beyond. The conflict has also increased geopolitical tensions and uncertainty, affecting business confidence and investment.

•The inflationary pressures that have emerged from the surge in commodity prices, especially oil and gas, as well as the supply chain bottlenecks and labor shortages that have hampered production and distribution across various sectors.

•The policy tightening by some major central banks, such as the US Federal Reserve and the European Central Bank, which have started to raise interest rates and reduce their asset purchases in response to the rising inflation and growth expectations. This has led to higher borrowing costs and lower liquidity for businesses and consumers, especially in emerging markets that are more vulnerable to capital outflows and currency depreciation.

•The uneven vaccination progress and the emergence of new variants of the coronavirus, which have posed challenges for the public health and economic recovery in some regions, such as Africa and Latin America. The pandemic has also exacerbated social inequalities and poverty, as well as environmental issues.

The global economy is expected to grow by around 2% in 2023, down from 3.1% in 2022. The growth rate is below the pre-pandemic average of 3.5% and reflects the divergent performance of different regions and countries. Some of the highlights are:

•China is expected to lead the global growth with a rate of 5.5% in 2023, as it reopens its economy after a prolonged period of lockdowns and zero-covid policies. Chinas growth will be supported by its strong domestic demand, infrastructure spending, and export competitiveness.

•India is expected to grow by 7.8% in 2023, rebounding from a contraction of 7.3% in 2020. Indias growth will be driven by its large population, favorable demographics, low interest rates, fiscal stimulus, and structural reforms.

•The US is expected to grow by 1.8% in 2023, slowing down from 5.6% in 2022. The US growth will be constrained by the fading effects of the fiscal stimulus, the monetary policy tightening, the supply chain disruptions, and the labor market challenges.

•The euro zone is expected to grow by 1.4% in 2023, decelerating from 4.6% in 2022. The euro zone growth will be hindered by the energy crisis, the political uncertainty, the fiscal consolidation, and the structural weaknesses.

•Japan is expected to grow by 0.8% in 2023, moderating from 2.7% in 2022. Japans growth will be limited by its aging population, low productivity, high debt, and defiationary pressures.

The global economic outlook for 2023 is subject to significant risks and uncertainties, both on the upside and downside. Some of the potential scenarios that could affect the global economy are:

•A faster resolution of the Russia-Ukraine war, which could ease the energy supply constraints and improve the geopolitical stability.

•A stronger coordination of fiscal and monetary policies among major economies, which could boost the global demand and confidence.

•A further escalation of the Russia-Ukraine war, which could trigger a wider military conflict and a global oil shock.

•A sharper than expected tightening of monetary policies by major central banks, which could cause a financial market turmoil and a credit crunch.

Indian Economy

The Indian economy is expected to grow by 7% in FY 2023, recovering from a contraction of 7.3% in FY 2021 due to the impact of the covid-19 pandemic. The growth is supported by the easing of lockdowns, the acceleration of vaccination, the improvement of consumer and business confidence, and the stimulus measures by the government and the central bank. The main sectors that are contributing to the growth are agriculture, industry, and services. Agriculture is estimated to grow by 3.9%, benefiting from a good monsoon and higher rural demand. Industry is estimated to grow by 9.6%, driven by manufacturing, construction, and mining, which have witnessed a revival of domestic and external demand. Services are estimated to grow by 8.4%, led by contact-intensive sectors such as trade, hotels, transport, and financial services, which have recovered as the pandemic situation improved. The main challenges that the economy faces are inflation, fiscal deficit, external sector volatility, and structural reforms. Infiation has remained above the target range of 2-6% due to the rise in food and fuel prices. The central bank has raised its policy rate by 50 basis points to contain inflationary pressures. The fiscal deficit has widened to 6.8% of GDP due to lower revenue collection and higher expenditure on health, social welfare, and infrastructure. The external sector has been resilient with a current account surplus and high foreign exchange reserves, but faces risks from global uncertainties, currency appreciation, and trade deficit. The economy needs to undertake more structural reforms to enhance its productivity, competitiveness, and inclusiveness.


Global Valve Industry

The global valve industry is a part of many sectors that use valves to control the flow and pressure of Rs.uids. The industry is expected to grow at a rate of 5% to 7% from 2022 to 2028, driven by the demand from power and chemical industries, the need for desalination activities, and the adoption of advanced technologies. The industry faces some challenges such as the stagnant growth in developed countries, the high cost of installation and maintenance, and the diverse regional policies and certifications.

The industry can be segmented by type, material, component, function, application, and geography. The most popular types of valves are ball valves and check valves. The most common material for valves is steel. The main components of valves are actuator, positioner, and valve body. The main functions of valves are isolation, regulation, safety relief valve, special purpose, and non-return. The largest application segments for valves are oil & gas, energy & power, and water & wastewater treatment. The dominant geographical region for valves is Asia-Pacific.

The global valve market can also be segmented by geography into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Asia-Pacific is expected to dominate the global valve market during the forecast period due to the rapid industrialization and urbanization in countries such as China, India, Japan, and South Korea. North America and Europe are also expected to have significant shares in the global valve market due to their established industries and advanced technologies. The industry is highly competitive and fragmented with many players operating at regional and global levels.

Indian Valve Industry

The valve industry in India is a vital part of the engineering sector, as valves are used to control the flow of fluids and gases in various industrial applications. Valves are essential components in sectors such as oil and gas, power generation, petrochemicals, fertilizers, water and wastewater management, and others. According to a various reports, the Indian valve market size is projected to reach $3 billion by 2023, growing at a compound annual growth rate of over 9% from 2017 to 2023. The report attributes this growth to the increasing demand for flow control equipment, the expansion of pipeline infrastructure for natural gas distribution, and the government initiatives to boost the manufacturing sector under the Make in India campaign.

The Indian valve industry is also becoming more competitive in the global market, as it offers cost-eRs.ective and quality products to meet the diverse needs of customers. According to a various reports, India is the second-largest exporter of valves in Asia-Pacific, after China, and accounts for about 5% of the global valve exports. The reports states that the

Indian valve industry has a complete portfolio of products, ranging from conventional valves to smart valves, which are integrated with sensors and actuators to provide real-time feedback and control. The reports also identifies some of the key challenges faced by the Indian valve industry, such as lack of standardization, skilled manpower shortage, and environmental regulations.

The Indian valve industry is expected to witness further growth opportunities in the coming years, as the country plans to invest heavily in sectors such as renewable energy, urban development, smart cities, and industrial corridors. The Indian Valve and Actuator Manufacturers Association (IVAMA) is an industry body that aims to promote the ecosystem of the valve industry and bring global business to India. The association provides various services to its members, such as training, technical expertise, networking opportunities, and market intelligence. The association also organizes technology meets and exhibitions to showcase the latest developments and innovations in the valve sector.

To conclude, the valve industry in India is an important and growing segment of the engineering sector, which contributes significantly to the Indian economy. The industry has a strong potential to become a global leader in valve manufacturing and exports, by leveraging its strengths and overcoming its challenges. The industry also plays a key role in supporting other sectors that require efficient and reliable flow control solutions.


In response to the dynamic landscape of the valve industry and our commitment to innovation and sustainability, Atam Valves Limited has developed a strategic roadmap to drive our growth and solidify our leadership position. Our strategy revolves around three key pillars: Innovation, Sustainability, and Customer-Centricity.

Innovation: We recognize that innovation is the lifeblood of our industry. We are dedicated to staying at the forefront of valve technology, investing in research and development to create cutting-edge solutions that meet the evolving needs of our clients. By continuously improving the design, materials, and functionalities of our Valves, Cocks & Boiler Mountings, we aim to enhance performance, reliability, and safety for our customers.

Sustainability: At Atam Valves Limited, we are fully aligned with the imperative to Go Green. Our commitment to environmental stewardship drives us to integrate eco-friendly practices throughout our operations. From responsible sourcing of materials to the reduction of waste and energy consumption in our manufacturing processes, we are focused on minimizing our environmental footprint. By offering Valves, Cocks & Boiler Mountings manufactured with sustainable materials and processes, we aim to provide environmentally conscious solutions that resonate with both customers and regulators. Customer-Centricity: Our customers are at the heart of everything we do. We are dedicated to understanding their unique challenges and providing tailored valve solutions that address their specific needs. Building strong and enduring relationships with our clients is a cornerstone of our strategy. We will achieve this by offering excellent customer service, prompt responsiveness, and a comprehensive understanding of their industries and operational requirements.

By executing this strategy, we are poised to achieve sustainable growth, increased market share, and enhanced brand reputation. We will continually assess our performance against these strategic pillars, making adjustments as necessary to adapt to changing market dynamics and emerging industry trends. Atam Valves Limited is committed to being a catalyst for positive change within the valve industry, a leader in innovation, and a partner in our customers success.


In the highly competitive and intricate landscape of the valve industry, Atam Valves Limited maintains a steadfast commitment to operational excellence, innovation, and customer satisfaction. Our operations are geared towards delivering high-quality valve solutions that meet the demanding requirements of diverse sectors including oil and gas, petrochemicals, power generation, water treatment, and more.

Design and Engineering Expertise: At Atam Valves Limited, our operations commence with a meticulous design and engineering phase. Our experienced teams collaborate closely to conceptualize and develop valve solutions that optimize performance, reliability, and safety. By utilizing advanced software and simulation tools, we ensure that our products are tailored to the unique operational environments of our clients.

Advanced Manufacturing: Leveraging state-of-the-art manufacturing facilities, we bring our designs to life. Our production processes adhere to rigorous quality standards and utilize cutting-edge technologies, resulting in our products that are not only compliant with industry regulations but also exceed performance expectations. The integration of automation and precision machining enhances the consistency and efficiency of our operations.

Quality Assurance: The integrity of our products is paramount. Rigorous quality control protocols are implemented at every stage of manufacturing, ensuring that each valve leaving our facilities is subject to comprehensive testing and inspection. This commitment to quality extends beyond product delivery, as we offer ongoing support to our clients, guaranteeing the continued performance of our products in the field.

Supply Chain Excellence: Our operations are intricately linked to a global network of suppliers who share our dedication to quality and reliability. We maintain transparent relationships with our partners to ensure the timely delivery of raw materials and components. By fostering collaboration and adherence to ethical and sustainable practices, we uphold the integrity of our supply chain.

Environmental Responsibility: Atam Valves Limited acknowledges its role in contributing to environmental sustainability. In our operations, we are vigilant about minimizing waste, reducing energy consumption, and adopting eco-friendly practices wherever feasible. We are committed to providing valve solutions that not only enhance industrial processes but also align with our eco-conscious values. Looking Ahead: As we navigate the evolving trends in the valve industry, Atam Valves Limited remains agile and adaptable. We are excited to announce that we are entering the market of bathware products, which is a fast-growing and lucrative segment in the home improvement industry. Bathware products include sanitary ware, faucets, showers, bathtubs, and accessories that enhance the aesthetics and functionality of bathrooms. We believe that our strong brand image, and our wide distribution network will give us a competitive edge in this segment. We have allocated a capex for setting up a state-of-the-art manufacturing facility for bathware products. We expect to launch our bathware products by the end of 2023-24, and capture a significant market share in the next few years. Bathware market cap is currently 67,000 cr. We are confident that our entry into the bathware segment will create value for our shareholders, customers, and stakeholders.


The valve industry operates within a dynamic environment characterized by evolving technological trends, market shifts, and regulatory changes. As a key player in this industry, Atam Valves Limited is positioned to capitalize on various opportunities while proactively addressing potential threats.


•The global industrial valves market is expected to grow at a CAGR of more than 5% from 2023 to 2028, driven by the growing demand from the power and chemical industries, as well as the increase in demand for desalination activity.

•The Asia-Pacific region is expected to dominate the market and witness the highest growth rate, owing to the rapid industrialization, urbanization, and infrastructure development in countries like China, India, Japan, and South Korea.

•The adoption of valves in the 1" to 6" size range is increasing, as they offer less turbulence to the flow and ensure lower pressure drops. These valves are suitable for various critical and severe service applications in multiple industries, such as oil & gas, energy & power, water & wastewater treatment, chemical, food & beverage, and pulp & paper.

•The emergence of new technologies, such as smart valves, digital valve positioners, and wireless valve monitoring systems, is creating new opportunities for the valve industry. These technologies can enhance the performance, efficiency, reliability, and safety of valves and reduce operational costs.


•The industrial valve market faces stiRs. competition from local and regional players, who offer low-cost products with similar or better quality. This may erode the market share and profitability of the established players.

•The malfunctioning or failure of valves and other products can result in unplanned downtime or shutdown of a plant, which can have enormous consequences for the facility, such as loss in production, heightened repair costs, related labor costs, and wastage of raw materials. Therefore, the valve industry needs to ensure high-quality standards and regular maintenance of its products.

•The industrial valve market is subject to various environmental and safety regulations, which may vary across different regions and countries. These regulations may impose additional costs and challenges for the valve industry to comply with them

•Rapid technological changes can render existing products obsolete or require significant investments to keep up. Staying informed and adaptable to emerging technologies is essential.

In response to these opportunities and threats, Atam Valves Limited maintains a proactive approach. We are committed to staying abreast of industry developments, investing in research and development, and fostering strong relationships with clients and partners. By continuously monitoring the market landscape and leveraging our strengths, we are well-positioned to navigate challenges and seize opportunities, ensuring the sustained growth and success of Atam Valves Limited within the dynamic industry.


In the context of our industry, Atam Valves Limited acknowledges a set of potential risks and concerns that require vigilant management. Market volatility and demand fluctuations pose challenges due to economic cycles and geopolitical tensions, impacting project timelines and investments.

The valve industry is also affected by the fluctuations in the oil and gas market, which is a major consumer of valves. The decline in oil prices in 2014 and 2020 has reduced the investments and activities in the upstream, midstream, and downstream sectors, leading to lower demand for valves. The industry needs to cope with the volatility of the oil and gas market by exploring new opportunities in other segments, such as power, water, and chemical.

Another risk factor for the valve industry is the increasing competition from low-cost manufacturers, especially from China. These manufacturers can offer cheaper products with comparable quality and performance, posing a threat to the established players in the market. The industry needs to differentiate itself by focusing on innovation, quality, reliability, and customer service. The valve industry also faces regulatory and environmental pressures from various governments and agencies. The industry needs to comply with the standards and specifications for valve design, manufacturing, testing, and operation, as well as the requirements for local content, energy efficiency, and emissions reduction. The industry needs to invest in research and development, as well as adopt best practices to meet these challenges.

In response, Atam Valves Limited maintains a proactive risk management approach, emphasizing rigorous assessment, innovation, and a commitment to quality to navigate these challenges while pursuing sustained growth and industry leadership.


The Revenue from Operations of the company for the year ended March 31, 2023 were Rs. 4900.89 Lakhs as compared to Rs. 2033.06 Lakhs in the previous year. The company has achieved a commendable profit of Rs. 766.76 lakhs during the year, reflecting its operational efficiency and competitiveness in the valves, cocks and boiler mountings industry. The Company on a continuous basis sets up policies to exercise cost control and cost reduction programme. The company has maintained its quality standards and customer satisfaction by producing and supplying various types of valves and cocks for different applications and industries. The company has also invested in upgrading its machinery, technology, and infrastructure to enhance its production capacity and reduce its operational costs. The company has also adhered to the safety and environmental regulations and norms while manufacturing its products. The company is confident of sustaining its growth momentum and profitability in the future by leveraging its expertise, experience, and innovation in the valves, cocks and boiler mountings industry.


As per the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the key financial ratios are given below:-

Sr. No


Current year

Last Year

Change (IN%)

Explanation for significant change in Accounting Ratios


Debtors Turnover Ratio(In times)






Inventory Turnover(In times)




There is substantial increase in revenue as compared to previous year leading to quick movement in inventory and working capital which has resulted into improvement in Inventory turnover Ratio.


Interest Coverage Ratio




There is substantial increase in revenue as compared to previous year whereas indirect and fixed expenses have not increased in that proportion resulting into higher profits which further resulting in to improvement in the Interest Coverage Ratio.


Current Ratio(In times)






Debt Equity Ratio(In times)




There is substantial increase in revenue as compared to previous year whereas indirect and fixed expenses have not increased in that proportion resulting into higher profits which further resulting in to improvement in Debt equity ratio.


Operating Profit Margin




There is substantial increase in revenue as compared to previous year whereas indirect and fixed expenses have not increased in that proportion resulting into higher profits which further resulting in to improvement in the Operating Margin Ratio.


Net Profit Margin(In %)




There is substantial increase in revenue as compared to previous year whereas indirect and fixed expenses have not increased in that proportion resulting into higher profits which further resulting in to improvement in Net profit Ratio.


The total employees strength of the Company was 196 as on 31st March, 2023., who are the backbone of success and growth of the Company. The company has fostered a culture of mutual respect, teamwork, and innovation among its workforce, and has provided them with adequate training, development, and welfare opportunities. The company has also maintained cordial and harmonious industrial relations with its employees and their representatives, and has ensured compliance with all the applicable labour laws and regulations. The company values its human capital as its most precious asset, and strives to create a conducive and rewarding work environment for them.


With the "New Normal" being set, we expect a challenging future ahead. Though we may have to face and manage challenges in the short term over the next few months, we foresee a Silver lining ahead. Further with the ampliRs.ed focus on "Aatma Nirbhar Bharat", we foresee an increased shift towards Domestic Production and Sales. This will definitely help in effectively utilizing our plant capacities to the optimum and also help in planning for future growth and investments.


Atams aim is to give long term commitment to their customers by supplying best quality products. To serve the nation by giving more employment and by increasing production continuously. To earn more foreign exchange for the country by exploring more export markets.


The information and opinions expressed in this report may contain certain forward-looking statements, which the management believes are true to the best of its knowledge at the time of its preparation. Actual results may differ materially from those either expressed or implied in this report.