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Atul Limited
(ATUL)
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Rating:62Neutral
Price Target:
₹5,913.00
▼(-4.31% Downside)
Action:Downgraded
Date:10/24/26
The score is supported primarily by strong financial resilience (very low leverage and improved FY26 free cash flow), but it is held back by weak technical momentum (price below key moving averages with negative MACD) and margin compression versus prior peaks. Valuation is neutral with a modest P/E and a low dividend yield.
Positive Factors
Conservative Balance Sheet
Very low leverage gives Atul substantial financial flexibility through chemical-industry cycles. The company can support assets and investment with limited debt pressure, while steadily expanding equity strengthens resilience and reduces exposure to refinancing or interest-cost constraints.
Negative Factors
Margin Compression
The substantial decline in gross margin shows that recent revenue growth has not translated proportionately into profitability. If lower margins persist, Atul may have less cash available for reinvestment and weaker earnings leverage when sales expand across its chemical businesses.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage gives Atul substantial financial flexibility through chemical-industry cycles. The company can support assets and investment with limited debt pressure, while steadily expanding equity strengthens resilience and reduces exposure to refinancing or interest-cost constraints.
Read all positive factors
Atul Limited (ATUL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹158.90B
Dividend Yield0.56%
Average Volume (3M)11.24K
Price to Earnings (P/E)20.6
Beta (1Y)0.92
Revenue Growth18.15%
EPS Growth42.38%
CountryIN
Employees3,255
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)270.18
Shares Outstanding29,441,755
10 Day Avg. Volume6,806
30 Day Avg. Volume11,240
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)3.01
Price to Sales (P/S)2.99
P/FCF Ratio21.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)276.95
Revenue Forecast (FY)₹71.63B
Atul Limited Business Overview & Revenue Model
Company Description
Atul Ltd is a prominent global manufacturer and distributor, offering an extensive portfolio of chemical products. The company strategically organizes its operations across two primary divisions: Life Science Chemicals, and Performance and Other C...
How the Company Makes Money
Atul Limited primarily makes money by manufacturing and selling chemicals and chemical intermediates to industrial customers. Its revenue model is largely business-to-business (B2B): it produces chemicals at its plants and earns revenue from produ...
Atul Limited Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 66.43B | 62.74B | 55.83B | 47.26B | 54.28B | 50.81B |
| Gross Profit | 20.52B | 14.85B | 20.08B | 15.15B | 24.29B | 23.52B |
| EBITDA | 14.03B | 12.40B | 9.18B | 6.37B | 8.11B | 9.16B |
| Net Income | 7.95B | 6.78B | 4.84B | 3.23B | 5.14B | 6.04B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 79.00B | 70.01B | 64.76B | 57.68B | 57.06B |
| Cash, Cash Equivalents and Short-Term Investments | 17.40B | 17.43B | 8.81B | 4.96B | 2.39B | 6.16B |
| Total Debt | 0.00 | 1.83B | 2.02B | 2.37B | 522.40M | 1.44B |
| Total Liabilities | -62.97B | 16.04B | 13.39B | 13.13B | 10.49B | 12.47B |
| Stockholders Equity | 62.97B | 62.22B | 55.99B | 51.14B | 46.71B | 44.29B |
Cash Flow | ||||||
| Free Cash Flow | 4.27B | 8.92B | 3.33B | 1.64B | -1.68B | -3.59B |
| Operating Cash Flow | 5.08B | 10.67B | 6.03B | 6.67B | 7.07B | 2.31B |
| Investing Cash Flow | -3.92B | -9.45B | -4.95B | -6.83B | -4.69B | -1.68B |
| Financing Cash Flow | -991.20M | -925.80M | -1.18B | 375.40M | -2.57B | -574.40M |
Atul Limited Technical Analysis
Negative
6179.45
Price Trends
6179.73
Negative
6342.80
Negative
6393.18
Negative
Market Momentum
-152.45
Positive
27.58
Positive
16.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ATUL, the sentiment is Negative. The current price of 6179.45 is above the 20-day moving average (MA) of 5909.01, below the 50-day MA of 6179.73, and below the 200-day MA of 6393.18, indicating a bearish trend. The MACD of -152.45 indicates Positive momentum. The RSI at 27.58 is Positive, neither overbought nor oversold. The STOCH value of 16.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ATUL.
Atul Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | ₹156.38B | 36.25 | ― | 0.22% | 7.26% | 5.73% | |
69 Neutral | ₹84.20B | 37.30 | ― | 0.61% | 5.11% | 20.64% | |
62 Neutral | ₹158.90B | 20.65 | ― | 0.56% | 18.15% | 42.38% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ₹128.70B | 73.45 | ― | 0.13% | 51.77% | 36.90% | |
53 Neutral | ₹100.41B | 32.36 | ― | 0.79% | 10.96% | 11.16% | |
47 Neutral | ₹158.16B | 29.74 | ― | 0.23% | 27.05% | 123.98% |
* General Sector Average
IN:ATUL
Atul Limited
5,397.20
-464.56
-7.93%
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436.00
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1,130.40
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5,100.60
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14.05%
IN:JUBLINGREA
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-7.98%
Atul Limited Corporate Events
Atul Limited Publishes Q2 FY2026 Financial Results in Leading Dailies
Oct 24, 2026
Atul Limited has released newspaper publications of its unaudited standalone and consolidated financial results for the second quarter ended September 30, 2026. The results, approved by the Board of Directors on October 23, 2026, were published in...
Atul Limited Faces GPCB Directions After Effluent Pipeline Incident
Oct 19, 2026
Atul Limited has reported that the Gujarat Pollution Control Board has issued directions following accidental damage to a treated effluent discharge pipeline at its Atul site, which led to the release of treated effluent into an estuary before bei...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.