⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ATUL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | ATUL | Market Cap | 18,633 Cr. | Current Price | 6,321 ₹ | High / Low | 7,793 ₹ |
| Stock P/E | 36.0 | Book Value | 1,973 ₹ | Dividend Yield | 0.39 % | ROCE | 11.9 % |
| ROE | 8.64 % | Face Value | 10.0 ₹ | DMA 50 | 6,304 ₹ | DMA 200 | 6,311 ₹ |
| Chg in FII Hold | -0.86 % | Chg in DII Hold | 0.46 % | PAT Qtr | 121 Cr. | PAT Prev Qtr | 172 Cr. |
| RSI | 49.7 | MACD | -24.5 | Volume | 18,212 | Avg Vol 1Wk | 31,667 |
| Low price | 4,752 ₹ | High price | 7,793 ₹ | PEG Ratio | -4.45 | Debt to equity | 0.00 |
| 52w Index | 51.6 % | Qtr Profit Var | 30.8 % | EPS | 176 ₹ | Industry PE | 25.7 |
📊 Financial Overview
- Revenue & Profitability: PAT declined from 172 Cr. to 121 Cr. (-30.8%), showing weakening profitability.
- Margins & Returns: ROCE (11.9%) and ROE (8.64%) are modest, below industry leaders.
- Debt: Debt-to-equity ratio at 0.00, indicating a debt-free balance sheet.
- Cash Flow: Strong EPS (176 ₹), but declining quarterly profits raise concerns.
💹 Valuation Metrics
- P/E Ratio: 36.0 vs Industry PE of 25.7 → Slightly overvalued.
- P/B Ratio: Current Price ₹6,321 vs Book Value ₹1,973 → Reasonable compared to peers.
- PEG Ratio: -4.45 → Negative, reflecting weak growth prospects.
- Intrinsic Value: Current price above fair value zone, suggesting limited upside.
🏢 Business Model & Competitive Advantage
- Diversified specialty chemicals portfolio with strong industry presence.
- Debt-free structure provides financial resilience.
- However, declining profitability and modest returns limit competitive strength.
📈 Entry Zone Recommendation
- Technicals: RSI at 49.7 (neutral), MACD negative, price near 50DMA & 200DMA.
- Suggested entry zone: ₹5,000–₹5,500 if correction occurs.
- Long-term holding viable only if profitability stabilizes and growth resumes.
✅ Positive
- Debt-free balance sheet.
- Strong EPS (176 ₹).
- Stable industry positioning in specialty chemicals.
⚠️ Limitation
- Declining quarterly profits (-30.8%).
- ROCE and ROE relatively weak.
- PEG ratio negative, signaling poor growth outlook.
📉 Company Negative News
- FII holding reduced (-0.86%).
- Profitability under pressure with declining PAT.
📈 Company Positive News
- DII holding increased (+0.46%).
- Debt-free structure supports financial stability.
🏭 Industry
- Industry PE at 25.7, lower than company’s 36.0.
- Sector growth steady, but company’s valuation slightly stretched.
🔎 Conclusion
- Atul has a strong balance sheet and industry presence but faces declining profitability.
- Valuation is slightly above industry average, limiting near-term upside.
- Best strategy: Wait for correction towards ₹5,000–₹5,500 before entry.
- Long-term holding viable only if earnings stabilize and growth improves.