ATUL - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:14 pm
Back to Fundamental ListFundamental Rating: 3.8
| Stock Code | ATUL | Market Cap | 17,686 Cr. | Current Price | 6,007 ₹ | High / Low | 7,793 ₹ |
| Stock P/E | 36.3 | Book Value | 1,973 ₹ | Dividend Yield | 0.43 % | ROCE | 11.9 % |
| ROE | 8.64 % | Face Value | 10.0 ₹ | DMA 50 | 5,945 ₹ | DMA 200 | 6,339 ₹ |
| Chg in FII Hold | -0.46 % | Chg in DII Hold | -0.02 % | PAT Qtr | 172 Cr. | PAT Prev Qtr | 97.7 Cr. |
| RSI | 46.1 | MACD | -27.1 | Volume | 23,069 | Avg Vol 1Wk | 39,860 |
| Low price | 4,752 ₹ | High price | 7,793 ₹ | PEG Ratio | -4.48 | Debt to equity | 0.00 |
| 52w Index | 41.3 % | Qtr Profit Var | 33.8 % | EPS | 166 ₹ | Industry PE | 26.6 |
📊 Financials: ATUL has delivered strong quarterly profit growth (PAT up 33.8% QoQ). The company is debt-free (Debt-to-Equity: 0.00), which ensures financial stability. ROE at 8.64% and ROCE at 11.9% are modest, reflecting average efficiency in capital utilization. EPS stands at ₹166, supported by stable cash flows.
💹 Valuation: Current P/E of 36.3 is higher than the industry average of 26.6, suggesting overvaluation. P/B ratio (~3.0) is moderate given the book value of ₹1,973. PEG ratio is negative (-4.48), indicating earnings growth is not keeping pace with valuation. Intrinsic value appears lower than current market price, limiting margin of safety.
🏭 Business Model: ATUL operates in specialty chemicals with diversified applications across agrochemicals, pharmaceuticals, and performance materials. Integrated manufacturing and strong R&D provide competitive advantage. Export-driven revenues add global exposure but also currency risk.
📈 Entry Zone: Attractive accumulation zone is around ₹5,200–₹5,500 (near support and below DMA 50). Current price ₹6,007 is slightly above support but below DMA 200, suggesting consolidation. RSI at 46.1 indicates neutral momentum.
🕰️ Long-Term Guidance: Hold for long-term if accumulated near support levels. Fundamentals are stable, but valuations are stretched. Better entry opportunities may arise during broader market corrections.
Positive
- Debt-free balance sheet ensures financial stability 💰
- Strong quarterly profit growth (PAT up 33.8% QoQ) 📈
- Diversified specialty chemicals portfolio with global exposure 🌍
Limitation
- High P/E compared to industry average ⚠️
- ROE and ROCE below ideal benchmarks 📉
- Negative PEG ratio indicates weak earnings growth vs valuation ❌
Company Negative News
- Decline in FII (-0.46%) and DII (-0.02%) holdings suggests reduced institutional confidence 📉
Company Positive News
- Quarterly profit surged from ₹97.7 Cr. to ₹172 Cr. 🚀
- Stable dividend payout with yield of 0.43% 💵
Industry
- Specialty chemicals sector has strong demand drivers in pharma, agrochemicals, and materials 🏭
- Industry P/E at 26.6 indicates moderate valuation compared to ATUL’s premium 📊
Conclusion
⚖️ ATUL is a fundamentally strong, debt-free specialty chemicals company with consistent profit growth. However, current valuations are stretched relative to industry peers. Best strategy is to accumulate near ₹5,200–₹5,500 and hold for long-term gains, leveraging its diversified business model and stable financial health.
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