ATUL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.9

Here’s a deep-dive into ATUL’s fundamentals, valuation metrics, business model, and long-term outlook

🧾 Financial Health & Performance

Revenue Growth & Profitability: Consistent quarterly PAT growth (₹128 Cr vs ₹126 Cr) and a solid EPS of ₹170 signal stable income, although not explosive growth.

Profit Margins

ROE: 9.10% is decent, though below top-tier benchmarks.

ROCE: 12.8% is acceptable for industrials but not elite.

Cash & Debt

Debt/Equity: 0.04 — excellent, indicating almost no debt pressure.

Cash Flow: Not specified, but low debt and stable profits suggest healthy operations.

💰 Valuation Analysis

Stock P/E: 39.5 — above industry PE (34.4), indicating premium valuation.

P/B Ratio: ~3.5 (Price ₹6,719 / Book Value ₹1,902) — moderately high.

PEG Ratio: -6.50 — negative PEG could imply concerns about future growth or distorted valuation due to low earnings growth.

Intrinsic Value: Price currently near/under 200 DMA (₹6,800), suggesting it’s nearing a technical support zone and possibly undervalued if fundamentals hold.

🧠 Business Model & Competitive Edge

Sector Positioning: ATUL operates in specialty chemicals, a space with high entry barriers and often long customer relationships.

Competitive Advantage

Strong legacy and diversified product portfolio.

Dependence on global demand and industrial cycles — cyclicality can impact stability.

FII/DII Trends

FII holding decreased, possibly short-term cautiousness.

DII holding increased, often a sign of domestic institutional confidence.

📉 Technical & Momentum Indicators

RSI: 35.4 — approaching oversold territory, which could be a bounce zone.

MACD: -158 — bearish sentiment in the short term.

Volume: Lower than weekly average, suggesting subdued interest or consolidation.

🎯 Suggested Entry Zone

₹6,400 – ₹6,700 appears attractive for entry, especially closer to 200 DMA and with RSI nearing oversold.

Watch for MACD crossover or volume uptick to confirm reversal.

📈 Long-Term Guidance

Hold with a 3–5 year view — specialty chemical demand is expected to rise globally.

Watch for

Margin improvement.

Capacity expansion.

Export growth.

Sustained ROE & ROCE.

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