Atul Limited (ATUL) AI Stock Analysis

• Market Cap: ₹176.78B
• Dividend Yield: 0.42%
• Average Volume (3M): 2.17K
• Price to Earnings (P/E): 32.6
• Beta (1Y): 1.00
• Revenue Growth: 16.46%
• EPS Growth: 43.59%
• Country: IN
• Employees: 3,255
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 60.90
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 209.35
• Revenue Forecast (FY): ₹63.17B

• Rating: 64 Neutral
• Price Target: ₹6,420.00 ▲(6.92% Upside)

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

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability and competitive positioning.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Operational Cash Flow

Strong operational cash flow indicates effective cash management, enabling the company to fund operations, invest in R&D, and pursue strategic initiatives without relying heavily on external financing.

Negative Factors

Free Cash Flow Volatility

Volatile free cash flow can signal challenges in converting earnings to cash, potentially impacting the company's ability to invest consistently in growth and innovation.

Net Profit Margin Fluctuations

Fluctuations in net profit margin may indicate variability in cost control or pricing power, which could affect profitability and financial predictability over time.

Gross Profit Decline

A decline in gross profit could suggest rising production costs or pricing pressures, potentially impacting the company's ability to maintain healthy margins and competitive pricing.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: 6004.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 6004.45 is above the 20-day moving average (MA) of 5854.47, above the 50-day MA of 5882.90, and below the 200-day MA of 6359.09, indicating a neutral trend. The MACD of -10.73 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 69.39 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	₹188.85B	26.51	―	1.04%	13.39%	36.62%
ATUL	64 Neutral	₹176.78B	32.61	―	0.42%	16.46%	43.59%
PRIVISCL	64 Neutral	₹120.53B	45.18	―	0.16%	24.25%	96.45%
AARTIIND	62 Neutral	₹133.94B	46.02	―	0.27%	8.26%	-34.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BASF	59 Neutral	₹168.80B	45.00	―	0.51%	0.43%	-42.29%
SUDARSCHEM	49 Neutral	₹76.30B	137.71	―	0.46%	159.81%	-63.02%