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Check Before You Invest : Atul Ltd

BSE: 500027 NSE: ATUL ISIN: INE100A01010
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Atul Ltd belong to?
Atul Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Atul Ltd a good quality company?
Atul Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Atul Ltd undervalued or overvalued?
Atul Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Atul Ltd a good buy now?
Atul Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Atul Ltd?
Atul Ltd revenue growth is 16.5% for FY-2025 , which is above its 5 year CAGR of 5.4% , indicating faster growth.
Q.2 Gross Profit margin of Atul Ltd?
Atul Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.2% for FY-2025 , which is below its 5 year median of 17.4% , indicating decreasing margins.
Q.3 Operating Profit Margin of Atul Ltd?
Atul Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.06% for FY-2025 , which is below its 5 year median of 14.38% indicating decreasing margins.
Q.4 Net Profit Margin of Atul Ltd?
Atul Ltd Net Profit Margin is 8.99% for FY-2025 , is below with its 5 year median of 10.91%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 16.2 17.4
Operating Profit Margin 14.06 14.38
Net Profit Margin 8.99 10.91
Q.5 Return on Asset of Atul Ltd?
Atul Ltd Return on Asset is 7.12%, which is below its 5 year historical median of 9.89%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Atul Ltd?
Atul Ltd Return on equity is 8.59% for FY-2025 , which is below its historical median of 12.4%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Atul Ltd?
Atul Ltd Return on capital employed is 11.83% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of Atul Ltd?
Atul Ltd Cash conversion cycle is 62 days, below its historical median of 62 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.81 0.81
ROE 8.59 12.4
ROCE 11.83 16.3
Cash Conversion Cycle 62 days 62 days
Q.9 Debt to Equity ratio of Atul Ltd?
Atul Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.13 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Atul Ltd?
Atul Ltd Debt to cash flow from operations is 0.02 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Atul Ltd?
Promoters hold 45.22% of the Atul Ltd, with 0.98% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Atul Ltd vs industry peers?
Atul Ltd revenue CAGR is 5.38% , compared to the industry median CAGR of 7.7% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 5,074.7 202
Gross Profit 822.2 23.6
Operating Profit 710 24
Net Profit 456 12
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.81 0.93
ROE 8.59 10.18
ROCE 11.83 13.07
Cash Conversion Cycle (days) 62.4 62

Valuation & price assessment

Q.1 Stock return of Atul Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14.3% -3.3% -2.3% 15.8%
Q.3 Valuation ratios of Atul Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 37.57 28.64 41.15
Price to Book 3.28 5.64 2.38
Price to Sales 3.61 5.12 1.93
EV to EBITDA 21.56 20.44 13.71

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