Atul Ltd. share price target

36.5% YoY. Gross margins expanded by 575bps YoY to 57.0%, which were significantly above our estimate of 51.0%. We believe, gross margins have largely expanded due to benign input costs. EBITDA (D.est: Rs 547mn) de-grew by 34.0% YoY to Rs 1.58bn, with an EBITDA margin of 24.0%. The company has controlled its other expenses and power and fuel costs, down by 38.3% YoY and 33.8% YoY respectively. Tax rate stood at 28.0% against 31.8% against...

Atul Ltd manufactures value added chemicals by blending basic chemicals and natural resources for diverse industries -agriculture, construction, textiles, pharmaceuticals and automobiles - from its plants in Valsad,...

Atul Ltd manufactures value added chemicals by blending basic chemicals and natural resources for diverse industries -agriculture, construction, textiles, pharmaceuticals and automobiles - from its plants in Valsad, Bharuch...

Atul Ltd manufactures value added chemicals by blending basic chemicals and natural resources for diverse industries -agriculture, construction, textiles, pharmaceuticals and automobiles - from its plants in Valsad, Bharuch...

Swayed by over 29% growth in LSC revenues, Atul's income from operations surged by 14.9% in Q4, while OPMs plunged 400 bps to 14.1% due to margin stress in both LSC and POC businesses - EBIT margins (on gross sales) of the former dreadfully slumped to 12.9% from 20.9% in the same quarter a year ago; that of latter by 140 bps to 12.1% ( q-o-q fall of 230 bps). If it were not for the lower interest expense (-55.8%) and higher other income (more than...

Atul is a chemical conglomerate company serving about 5700 customers belonging to 31 industries across the world. With depth in science and technology, Atul manages almost all unit processes and unit operations to manufacture about 1380 products and formulations and has state-of-the-art facilities and...

Unyielding increase in EBIT margins of POC business explains the gaping profits (standalone) between LSC and POC business - POC's EBIT was nearly three time that of LSC's in HIFY17 from just 1.4x in FY16 and 1.2x in FY14. It also restricted sharp erosion in PBT in H1 - grew by a disappointing 4.7% for the LSC business EBIT slid 26.9% to Rs 61.44 crs ($9.1m) from Rs 84.07 ($12.4m) in the same period a year ago. Thanks to lower tax provision, PAT advanced by 12.9% to Rs 162.86 crs ($24.1m) in H1. Atul's Board of Directors recently approved the partnership of Atul or its...

Atul is a chemical conglomerate company serving about 5700 customers belonging to 31 industries across the world. With depth in science and technology, Atul manages almost all unit processes and unit operations to manufacture about 1380 products and formulations and has state-of-the-art facilities and processes to ensure safety and treatment of gaseous, liquid and solid pollutants. The company has established subsidiary companies in the USA (1994), the UK (1996), Germany (1998), China (2004), Brazil (2012), and the...

Key highlights: Revenue was better than our expectations due to the excise duty of Rs 394mn asperINDAS; excluding this, saleswere in line. EBITDA marginwas in line and so wasEBITDA.Lowerotherincomeandhigherdepreciation(+45%yoy),resultedinaPBTofRs 950mn (5% below estimates). However, significantly lower tax of 15% (vs. normal tax of 31%) boosted PAT to Rs 805mn (+32% yoy), but on normalised taxes, adjusted PAT stood...

In the colour segment, market share for products such as vat dyes (16%) and sulphur black(12%)increased.ExpectsincreaseindemandfortheseproductsinFY17,whichis inlinewithourestimatesofagradualrecoveryinthecoloursegment.Withincreasing...