Atul Ltd. share price target

Atul Limited (Atul) reported consolidated revenue of Rs. 1,002 crore (down 4.2%; up 51.7% q-o-q), which was 7.9% above our estimate of Rs. 929 crore. Revenue beat was on the account of betterthan-expected revenue from life science chemicals segment at Rs. 348 crore (up 5.3% y-o-y; up 28.3% q-o-q), while revenue from performance and other chemicals segment was largely in-line at Rs. 690 crore (down 7.7% y-o-y; up 64% q-o-q). The sharp sequential improvement in revenue can be attributed to higher demand from key user industries in the domestic market as economic activities recovered sharply post unlockdown by the government. EBITDA margin came in at 26.1% (up 460 bps y-o-y; up 204 bps q-o-q), which was also above our estimate of 25% due to higherthan-expected margin in the performance and other chemicals segment (EBIT margin up 411 bps y-o-y to 23.1%). The improvement in EBITDA margin was on account of better operating leverage...

Atul Ltd's result was yet another surprise on the margin front, with sales too slowly reverting to pre-covid levels. Sales came in above our estimate at Rs 10.02bn (D.est: Rs 9.07) down by 4.2% YoY. EBITDA (D.est: Rs 2.06 bn) grew by 16.4% YoY to Rs 2.61bn, with a strong EBITDA margin of 26.1%, an increase of 460 bps YoY. The company has controlled its other expenses and power and fuel costs,...

Scarcely unscathed by the horrendous pandemic which triggered countrywide lockdown and forced suspension of Atul's manufacturing plants, beside others, its income from operations plunged by a little pleasing 36.5% to Rs 660.56 crs in the first quarter compared to Rs 1040.55 crs in the same quarter a year ago. Due to its far lesser reliance on essentials when compared to life science chemicals, performance and other chemicals barely managed to evade the brunt of the pandemic for its revenues slid by a little gratifying, though barely sustainable, 42.6%,...

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...