Atul Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Atul Ltd's recent performance highlights a strategic pivot towards high-value chemical intermediates and crop protection, with management emphasizing capacity expansions and R&D investments. The company's robust growth in the Performance & Other Chemicals segment, alongside significant EBITDA growth, supports Vista's forecast of steady revenue growth and improving margins. However, execution risks related to project timelines and competitive pressures in export markets remain critical watchpoints. The macro environment in India, characterized by strong manufacturing activity and favorable liquidity conditions, further bolsters Atul's outlook. Over the next 12-24 months, key opportunities include the ramp-up of new manufacturing facilities and the commercialization of innovative products, while headwinds may arise from potential margin compression and geopolitical uncertainties. Vista's financial outlook anticipates a 0.25% expected upside, with a 12-month target price of ₹8,865, reflecting a fair valuation aligned with intrinsic value
Why We Like This Stock
- Strong operational resilience and EBITDA growth driven by strategic focus on high-value segments
- Ongoing investments in capacity expansion and R&D are expected to enhance long-term revenue and margin potential
- Favorable macroeconomic conditions in India support manufacturing and demand for specialty chemicals
Things To Watch Out For
- Execution risks related to project timelines could impact growth targets
- Competitive pressures in export markets may limit pricing power and margin recovery
- Geopolitical volatility and energy price fluctuations pose significant risks to operational stability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 4,726 | 5,583 | 6,274 | 6,844 | 7,378 |
| Profit Before Tax (Cr.) | 454 | 697 | 900 | 1,067 | 1,139 |
| PBT Margin | 9.6% | 12.5% | 14.3% | 15.6% | 15.4% |
| Net Profit (Cr.) | 339 | 538 | 729 | 868 | 914 |
| Earnings Per Share | 114.9 | 177.7 | 244.1 | 290.8 | 310.7 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 7,700 | 27-Jul-2026 |
| Motilal Oswal | ▲ Buy | 8,400 | 27-Jul-2026 |
| Kotak Securities | ▼ Sell | 5,900 | 13-Jul-2026 |
| Elara Capital | ► Accumulate | 7,305 | 03-May-2026 |
Company Overview
Show Company Profile
Atul Ltd manufactures and sells chemicals and other chemical products worldwide. The company offers 2 nitro para cresol, 2-methylcyclohexyl acetate, allyl caproate and heptanoate, ambrettolide, anethole, cresol mixture, manganese sulphate monohydrate, ortho cresol and methoxy toluene, phenyl acetic acid, skatole, and sodium sulfite and sulphate, as well as anisic aldehyde, anisyl acetate and alcohol, anisyl propanal, cresidine, cresol, cresyl acetate and methyl ether, methoxy phenyl acetic acid, aceto nitrile, benzylamine hydrochloride, and 4-chloro-3-ethyl-1-methyl-1h-pyrazole-5-carboxylic acid; and bulk chemicals and intermediates, including 1,3-cyclohexanedione, 2-methylresorcinol, 4-chlororesorcinol, anisole, caustic soda lye, chlorosulphonic and hydrochloric acid, gypsum, hydrogen gas, liquid chlorine, liquid sulphur dioxide and trioxide, oleum, resoform, resorcinol, resorcinol dimethyl ether, sodium hypochlorite, sodium sulphite, and sulphuric acid. It also provides synthetic and natural food colors; biostimulants, fungicides, herbicides, and insecticides; amino acid derivatives, active pharmaceutical ingredients (API), API intermediates, and phosgene derivatives; and epoxy resins, curing agents, reactive diluents, accelerators and catalysts, formulations, and sulfones. In addition, the company produces tissue culture raised date palm plants, as well as engages in crop protection retail and polymers retail operations. It serves various industries, such as adhesives, agriculture, animal feed, aerospace and defense, automotive, composites, construction, electrical and electronics, food and beverage packaging, marine, medical device, paint and coatings, sport and leisure, transport, wind energy, cosmetics, dyestuff, flavor, footwear, fragrance, glass, home care, horticulture, hospitality, paper, personal care, pharmaceutical, plastic, polymer, rubber, soap and detergent, textile, and tire. Atul Ltd was incorporated in 1947 and is headquartered in Valsad, India.