Atul Limited (ATUL) AI Stock Analysis

• Market Cap: ₹190.67B
• Dividend Yield: 0.41%
• Average Volume (3M): 2.17K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.98
• Revenue Growth: 16.46%
• EPS Growth: 43.59%
• Country: IN
• Employees: 3,255
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 55.00
• Shares Outstanding: 29,441,755
• 10 Day Avg. Volume: 2,045
• 30 Day Avg. Volume: 2,165
• PEG Ratio: 0.71
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 3.06
• P/FCF Ratio: 51.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹7,500.00
• Price Target Upside: 21.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 212.07
• Revenue Forecast (FY): ₹62.79B

• Rating: 64 Neutral
• Price Target: ₹6,985.00 ▲(13.04% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Atul Limited's overall stock score is primarily driven by its strong financial performance, characterized by consistent revenue growth and a robust equity position. However, the technical analysis indicates a bearish trend, and the valuation suggests the stock is relatively expensive, which may limit its attractiveness. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Consistent Revenue Growth

Sustained revenue growth, including a notable 20% increase in 2025, signals expanding product adoption and market penetration across chemical segments. Over 2–6 months this supports continued investment in capacity and R&D, and underpins recurring cash generation potential from diversified product sales.

Robust Balance Sheet

A strong equity base and low leverage provide durable financial flexibility: enables funding of capex, cushioning against cyclicality, and the ability to pursue acquisitions or product investments without stressing liquidity. This conservatism supports long-term stability and strategic optionality.

Stable Operating Margins

Consistently healthy gross, EBIT and stable EBITDA margins reflect operational efficiency and some pricing power in specialty chemicals. Over months this margin resilience supports profitable reinvestment, helps absorb input cost swings, and sustains free cash generation when volumes are stable.

Negative Factors

Volatile Free Cash Flow

Inconsistent free cash flow and a negative FCF year indicate potential strain converting earnings into spendable cash. Over the medium term this can limit self-funded growth, force higher working capital financing, or delay capex and dividends unless operational cash conversion is steadied.

Decline in Gross Profit (2024)

A drop in gross profit points to pressure on core unit economics, likely from input cost, mix shifts, or pricing competition. If structural, this can erode margins and reduce cash available for investment; management must restore margin drivers to maintain long-term profitability.

Cyclical End‑Market Exposure

Heavy exposure to industrial end markets creates sensitivity to economic cycles and capex trends. Over a multi-month horizon, downturns in end-user industries can depress volumes and realizations, challenging revenue stability despite product diversification across chemicals and life‑science segments.

Atul Limited Business Overview & Revenue Model

Company Description

Atul Ltd manufactures and sells chemicals and other chemical products worldwide. It operates in two segments, Life Science Chemicals; and Performance and Other Chemicals. The company offers aromatics, such as 2 nitro para cresol, 2-methylcyclohexyl acetate, allyl caproate, allyl heptanoate, ambrettolide, anethole, cresol mixture, manganese sulphate monohydrate, ortho cresol and methoxy toluene, phenyl acetic acid, skatole, and sodium sulfite and sulphate, as well as para anisic aldehyde, anisyl acetate and alcohol, anisyl propanal, cresidine, cresol, cresyl acetate and methyl ether, methoxy phenyl acetic acid, and aceto nitrile; and bulk chemicals and intermediates, including 1,3-cyclohexanedione, 2-methylresorcinol, 4-chlororesorcinol, anisole, caustic soda lye, chlorosulphonic and hydrochloric acid, gypsum, hydrogen gas, liquid chlorine, liquid sulphur dioxide and trioxide, oleum, resoform, resorcinol, resorcinol dimethyl ether, sodium hypochlorite, sodium sulphite, and sulphuric acid. It also provides colors; fungicides, herbicides, insecticides, and intermediates; amino acid derivatives, active pharmaceutical ingredients (API), API intermediates, and phosgene derivatives; and epoxy resins, curing agents, reactive diluents, accelerators and catalysts, formulations, and sulfones. In addition, the company produces tissue culture raised oil and date palm plants, as well as engage in the crop protection retail and polymers retail operations. It serves various industries, including adhesives, agriculture, animal feed, automobile, composites, construction, cosmetic, defense, dyestuff, electrical and electronics, flavor, food, footwear, fragrance, glass, home care, horticulture, hospitality, paint and coatings, paper, personal care, pharmaceutical, plastic, rubber, soap and detergent, sport and leisure, textile, tire, and wind energy. Atul Ltd was incorporated in 1947 and is headquartered in Valsad, India.

How the Company Makes Money

Atul Limited generates revenue through multiple streams, primarily by manufacturing and selling a wide range of chemical products across different sectors. The company produces specialty chemicals, pharmaceuticals, and agrochemicals, which are sold to various industries, including textile, agriculture, and healthcare. Key revenue streams include the sale of bulk chemicals and intermediates, as well as customized products designed to meet specific customer needs. Atul also engages in strategic partnerships and collaborations with other firms to enhance its product offerings and market reach. Additionally, the company invests in research and development to innovate and improve its product lines, which helps to maintain competitiveness and drive sales growth.

Atul Limited Financial Statement Overview

Summary

Atul Limited demonstrates solid financial health with consistent revenue growth and a strong equity position. Margins are largely stable, and the company maintains low leverage. Despite some fluctuations in free cash flow, operational cash flows are strong, supporting the company's growth and stability in the chemicals industry.

Income Statement

Atul Limited has shown strong revenue growth over the years, with a significant 20% increase in 2025. The company maintains healthy gross and EBIT margins, although the net profit margin has seen some fluctuations. EBITDA margin is stable, indicating efficient core operations. However, the decline in gross profit in 2024 is a concern that needs monitoring.

Balance Sheet

The balance sheet is robust with a strong equity base, evidenced by a high equity ratio. The debt-to-equity ratio is low, indicating conservative leverage. Return on equity is steady, suggesting efficient use of shareholder funds. The increasing stockholders' equity over the years is a positive sign of financial health.

Cash Flow

Cash flow from operations remains strong, but there has been volatility in free cash flow, particularly with a negative free cash flow in 2023. The free cash flow to net income ratio is inconsistent, indicating potential challenges in translating earnings into cash. However, operating cash flow to net income ratio remains healthy, showing good cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	57.39B	55.83B	47.26B	54.28B	50.81B	37.31B
Gross Profit	20.34B	20.08B	15.15B	24.29B	23.52B	19.26B
EBITDA	9.03B	9.17B	6.35B	8.10B	9.15B	9.18B
Net Income	5.00B	4.84B	3.23B	5.14B	6.04B	6.56B
Balance Sheet
Total Assets	0.00	70.01B	64.76B	57.68B	57.06B	49.37B
Cash, Cash Equivalents and Short-Term Investments	8.78B	8.81B	4.96B	2.39B	6.16B	10.86B
Total Debt	0.00	2.02B	2.37B	522.40M	1.44B	1.33B
Total Liabilities	-56.62B	13.39B	13.13B	10.49B	12.47B	10.80B
Stockholders Equity	56.62B	55.99B	51.14B	46.71B	44.29B	38.27B
Cash Flow
Free Cash Flow	0.00	3.33B	1.64B	-1.68B	-3.59B	3.95B
Operating Cash Flow	0.00	6.03B	6.67B	7.07B	2.31B	7.18B
Investing Cash Flow	0.00	-4.95B	-6.83B	-4.69B	-1.68B	-6.46B
Financing Cash Flow	0.00	-1.18B	375.40M	-2.57B	-574.40M	-521.90M

Atul Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6179.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ATUL, the sentiment is Positive. The current price of 6179.45 is below the 20-day moving average (MA) of 6533.67, below the 50-day MA of 6233.98, and below the 200-day MA of 6427.21, indicating a neutral trend. The MACD of 105.23 indicates Positive momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ATUL.

Atul Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCMSHRIRAM	66 Neutral	₹158.03B	23.03	―	1.01%	13.39%	36.62%
ATUL	64 Neutral	₹190.67B	28.12	―	0.41%	16.46%	43.59%
PRIVISCL	64 Neutral	₹116.29B	35.11	―	0.15%	24.25%	96.45%
AARTIIND	63 Neutral	₹148.94B	25.48	―	0.26%	8.26%	-34.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BASF	59 Neutral	₹155.54B	40.15	―	0.51%	0.43%	-42.29%
SUDARSCHEM	49 Neutral	₹67.50B	-16.12	―	0.46%	159.81%	-63.02%

Atul Limited Corporate Events

Atul Limited Clarifies Stock Volume Movement

Atul Limited has addressed a query from BSE Limited regarding unusual volume movement in its stock. The company clarified that it has consistently adhered to disclosure regulations and confirmed that there are no pending announcements that could influence stock price or volume, attributing any recent changes to market dynamics.