Atul Ltd - Stock Valuation and Financial Performance

BSE: 500027 | NSE: ATUL | Chemicals | Small Cap

Atul Share Price

6,155.40 -41.45 -0.67%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Atul

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Atul stock performance -

mw4me loader
P/E Ratio (SA):
45.52
Market Cap:
18,122.6 Cr.
52-wk low:
5,720.1
52-wk high:
7,587

Is Atul Ltd an attractive stock to invest in?

1. Is Atul Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Atul Ltd is a good quality company.

2. Is Atul Ltd undervalued or overvalued?

The key valuation ratios of Atul Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Atul Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Atul Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Atul:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Atul Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 19.3%17.9%17.9%15.2%12.9%17.5%22%18.8%14.8%11.7%-
Value Creation
Index
0.40.30.30.1-0.10.30.60.40.30.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,3652,5562,4552,6953,1073,9163,9063,5124,9935,0624,332
Sales YoY Gr.-8%-4%9.8%15.3%26%-0.3%-10.1%42.2%1.4%-
Adj EPS 70.972.79096.690.4142.2211.5215201.5177135.2
YoY Gr.-2.6%23.8%7.3%-6.4%57.3%48.7%1.7%-6.3%-12.1%-
BVPS (₹) 282.9342.5536.8647.6740.9893.31,035.21,254.31,458.71,555.21,659.4
Adj Net
Profit
210216267287268422627636596522398
Cash Flow from Ops. 141317375370325397852677217732-
Debt/CF from Ops. 2.50.90.80.400000.30-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.8%10.3%9%1.4%
Adj EPS 10.7%14.4%-5.8%-12.1%
BVPS20.9%16%14.5%6.6%
Share Price 28.9% 12.1% -7.4% -12.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
24.82220.516.31317.421.918.814.911.78.4
Op. Profit
Mgn %
14.514.71817.715.218.821.624.117.314.412.8
Net Profit
Mgn %
8.98.410.910.68.610.816.118.111.910.39.2
Debt to
Equity
0.40.30.20.1000000-
Working Cap
Days
13914014514415114215016515018881
Cash Conv.
Cycle
5559615559565653577052

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 8.40%

Sales growth has been subdued in last 3 years 9.03%

Net Profit has been subdued in last 3 years -5.76%

Sales growth is not so good in last 4 quarters at -18.91%

Latest Financials - Atul Ltd.

Standalone Consolidated
TTM EPS (₹) 135.2 121.7
TTM Sales (₹ Cr.) 4,332 4,709
BVPS (₹.) 1,659.4 1,672.1
Reserves (₹ Cr.) 4,856 4,894
P/BV 3.71 3.68
PE 45.52 50.60
From the Market
52 Week Low / High (₹) 5720.10 / 7586.95
All Time Low / High (₹) 9.25 / 10975.40
Market Cap (₹ Cr.) 18,123
Equity (₹ Cr.) 29.4
Face Value (₹) 10
Industry PE 49.3

Management X-Ray of Atul:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *1.501.501.501.501.500.750.980.980.980.98
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,3652,5562,4552,6953,1073,9163,9063,5124,9935,062
Operating Expenses 2,0222,1802,0132,2242,6353,1803,0612,6744,1314,366
Manufacturing Costs5396215195776447687806821,0691,178
Material Costs1,2321,3041,2261,3601,6932,0581,8811,6012,6242,682
Employee Cost 140154168173181219249249276301
Other Costs 11110199114117135152141161205
Operating Profit 343376442470472736844839861696
Operating Profit Margin (%) 14.5%14.7%18.0%17.5%15.2%18.8%21.6%23.9%17.3%13.7%
Other Income 4015444238317811192199
Interest 31242621942232
Depreciation 54556291105112117120146163
Exceptional Items 0030000000
Profit Before Tax 297312400401397652803828804730
Tax 8495126115127223162197196178
Profit After Tax 213217274285270429640631608552
PAT Margin (%) 9.0%8.5%11.2%10.6%8.7%10.9%16.4%18.0%12.2%10.9%
Adjusted EPS (₹)71.773.392.596.291.2144.5215.8213.2205.3187.1
Dividend Payout Ratio (%)10%12%11%10%13%10%13%9%12%17%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 9421,0161,5921,9212,1982,6503,0703,7114,3164,589
Share Capital 30303030303030303030
Reserves 9129861,5621,8912,1682,6203,0413,6824,2874,560
Minority Interest0000000000
Debt2982182671340000735
Long Term Debt11354210000000
Short Term Debt1841642461340000735
Trade Payables319263294329470418478563620531
Others Liabilities 218265231317347523505508544483
Total Liabilities 1,7761,7622,3842,7013,0153,5904,0544,7825,5535,608

Fixed Assets

Gross Block1,2321,2417781,0841,1761,2661,3631,6031,9242,129
Accumulated Depreciation69174662153254345456544651783
Net Fixed Assets5414957169319229219071,0591,2731,345
CWIP 53104170377070235239173356
Investments 1361494465325959261,3301,5511,5511,128
Inventories376350374368379428427511701648
Trade Receivables4474394205077187627197141,059894
Cash Equivalents 965722299309213
Others Assets2142182533193104544274017751,234
Total Assets 1,7761,7622,3842,7013,0153,5904,0544,7825,5535,608

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 141317375370325397852677217732
PBT 297312400401397652803828804730
Adjustment 637178848211866408653
Changes in Working Capital -14762-40-57-1261935-480126
Tax Paid -72-72-106-75-98-247-209-196-192-177
Cash Flow From Investing Activity -80-196-342-160-87-358-709-603-225-498
Capex -98-175-356-171-114-121-270-271-297-449
Net Investments 00210-264-453-379392388
Others 18-21121127271447-321-437
Cash Flow From Financing Activity -60-123-34-208-224-44-154-6411-252
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -32-51-60-30-2100000
Interest Paid -31-24-26-23-9-4-2-2-3-2
Dividend Paid -21-26-30-35-33-40-1510-59-96
Others 24-2383-120-16000-6273-154
Net Cash Flow 1-3-1215-5-10103-18
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)28.5523.4421.0516.2413.1317.6922.3818.6115.1412.4
ROCE (%)29.912726.7121.2419.0127.0528.1424.4719.9216.3
Asset Turnover Ratio1.521.541.261.121.11.191.020.80.980.92
PAT to CFO Conversion(x)0.661.461.371.31.20.931.331.070.361.33
Working Capital Days
Receivable Days59606059716969746469
Inventory Days50495148433840484448
Payable Days888182848679871188177

Atul Ltd Stock News

Atul Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Atul on 12-Apr-2024 16:59 is ₹6,155.4.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Atul stood at ₹18,122.6.
The latest P/E ratio of Atul as of 12-Apr-2024 16:59 is 45.52.
The latest P/B ratio of Atul as of 12-Apr-2024 16:59 is 3.71.
The 52-week high of Atul is ₹7,587 and the 52-week low is ₹5,720.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Atul is ₹4,332 ( Cr.) .

About Atul Ltd

Incorporated in 1947, Atul Ltd, formerly Atul Products Ltd was founded by Kasturbhai Lalbhai with a dream to make India self reliant in chemicals, generate employment on a large-scale and create wealth for the society. For translating his dream into reality, Kasturbhai Lalbhai brought his confidant, Ballubhai Muzumdar, an economist- and his son, Siddharth Kasturbhai Lalbhai, a chemical engineer, to lead Atul Ltd and establish a large chemical conglomerate.

It is  one of the largest integrated chemical companies of India and are a diversified Indian company (a part of Lalbhai Group, one of the oldest business houses of India with a legacy of conducting business with a larger purpose) meeting the needs of varied industries such as Adhesive, Agriculture, Animal Feed, Automobile, Composite, Construction, Cosmetic, Defence, Electrical and Electronics, Flavour, Food, Footwear, Fragrance, Glass, Home Care, Horticulture, Hospitality, Paint and Coatings, Paper, Personal Care, Plastic, Rubber, Soap and Detergent, Sport and Leisure, Textile, Tyre and Wind Energy across the world. The company manages complex chemical processes in a responsible way.

In order to enhance focus, the company has placed the products belonging to the 2 reporting Segments, namely Life Science Chemicals and Performance and Other Chemicals, under 7 Sub-segments (interchangeably called Businesses), namely Aromatics, Bulk Chemicals and Intermediates, Colors, Crop Protection, Floras, Pharmaceuticals and Polymers - these in turn are managed through a matrix organisation structure for achieving all-round functional excellence.

Business area of the company

Atul is one of the largest integrated chemical companies of India. The company has one of the biggest integrated chemical complexes in India with a well-diversified product portfolio of around products and formulations. It has manufacturing facilities located at Ankleshwar and Valsad in Gujarat & Tarapur in Maharashtra.

Awards and recognitions

  • 2016: Certificate of merit for ‘greening the deserts’ project by Flame Awards Asia 2016
  • 2016: Innovative Supplier of the Year Award by Hindustan Zinc Ltd
  • 2016: Best Induction Program Award at Chief Learning Officer Summit 2016
  • 2017: Finalist at Outstanding Young Managers Competition 2016-17 at Baroda Management Association
  • 2018: IDC Insights Award 2018
  • 2018: Rashtra Vibhushan Award 2018
  • 2018: Excellence in Cost Management Award 2018
  • 2019: The Company was awarded ‘Green Gujarat Award 2019’ for its Ankleshwar site

History and Milestones

1947-1951

  • Incorporated by Mr Kasturbhai Lalbhai as the first private sector company of independent India to be inaugurated by its first Prime Minister.
  • Established a joint venture (JV) with American Cyanamid Company of the USA, Cyanamid India Ltd, to produce crop protection chemicals and pharmaceuticals.

1952-1971

  • Inaugurated by Prime Minister Jawaharlal Nehru on March 17, 1952.
  • Commenced the manufacture of dyes (including Vat dyes) for the first time in India.
  • Established Kalyani Shala, a school for children residing in and around Atul, with Gujarati as the medium of instruction.
  • Established a JV with Imperial Chemical Industries (ICI) plc of the UK, Atic Industries Ltd (Atic), to produce textile dyestuffs.
  • Established a JV with Ciba-Geigy Ltd (Ciba-Geigy) of Switzerland, Cibatul Ltd (Cibatul), to produce epoxy resins and curing agents.
  • Set up a JV with American Cyanamid (65%) to manufacture crop care chemicals.
  • Commenced the manufacture of Phosgene for the first time in India.
  • Held 2 Ranji Trophy cricket matches at the cricket ground in Atul.

1972-1991

  • Commenced the manufacture of Carbamite and 2,4-D Acid for the first time in India.
  • Set-up Atul Rural Development Fund to formalise programs undertaken since inception related to serving society.
  • Constructed a central effluent treatment plant.
  • Acquired loss-making Gujarat Aromatics Ltd through a reverse merger and got its second production site in Ankleshwar.
  • Commenced the manufacture of para Cresol for the first time in India.
  • Established Atul Vidyalaya, an ICSE school for children residing in and around Atul, with English as the medium of instruction.
  • Modernised epoxy plant and expanded Vat dyes manufacturing unit.
  • Acquired controlling interest in Piramal Rasayan Ltd engaged in the production of dye-intermediates and renamed Amal Ltd.

1992-2011

  • Formed Atul USA Inc, Atul Europe Ltd and Atul China Ltd.
  • Merged Atic after the JV partner ICI PLC exited.
  • Acquired DPD Ltd in the UK engaged in the production of tissue culture raised date palms.
  • Acquired Anchor Adhesives Pvt Ltd which owned Polygrip, a leading Rubber and Polyurethane based adhesive brand in India.
  • Established Atul Vidyamandir, a residential school for tribal children.
  • Established a wholly owned subsidiary company, Atul Bioscience Ltd, to produce Active Pharmaceutical Ingredients (APIs) and their intermediates.
  • Merged Cibatul after the JV partner Ciba-Geigy exited.
  • Established a JV with Rudolf GmbH of Germany, Rudolf Atul Chemicals Ltd, to produce textile chemicals.
  • Inaugurated Atul’s first office in Mumbai in Dadar on March 2007.

2012-2013

  • Established a JV with the Government of Rajasthan, Atul Rajasthan Date Palms Ltd, to produce tissue culture raised date palms for the first time in India.
  • Expanded para Cresol manufacturing facility - the world’s largest.
  • Established a 22,000 sq ft research facility to build the business of APIs and API intermediates.
  • Inaugurated the Learning Center at Atul on January 2012.
  • Inaugurated the Inspiring Center at Atul on March 2012.

2013-2014

  • Automated payroll processing of 5 subsidiary associate companies.
  • Decreased (liquid) effluent in 41 products by 79% on an average.
  • Converted Ankleshwar site into a ‘zero liquid effluent discharge’ facility.
  • Developed 67 new products and formulations in R&D.
  • Developed a mobile application to send requisitions and receive quotations.

2014-2015

  • Implemented ‘Atul mobSales’ - open source integrated mobility solution for brand sales.
  • Implemented ‘Atul i-Quote’ - open source vendor portal to ensure better connect with vendors.
  • Implemented ‘Saral' - open source human resource self-service multi-lingual kiosk system.
  • Established and commissioned well equipped occupational health centre at Ankleshwar.
  • Achieved zero liquid effluent discharge in 1 key product.

2015-2016

  • Achieved zero liquid discharge in the manufacture of a key product.
  • Built a 6,500 kL reservoir for rainwater harvesting.
  • Replaced mercury based caustic chlorine plant with an environment-friendly, membrane based plant.
    Introduced 65 products and 19 formulations.
  • USFDA approval received for Dapsone manufacturing plant.
  • Inaugurated the new registered office at Ahmedabad in January 2015.
  • Inaugurated the second office in Mumbai at Goregaon in September 2015.

2016-2017

  • Visit of Mr Vijay Rupani, Honourable Chief Minister of Gujarat, to Atul Institute of Vocational Excellence.
  • Built 2,000 individual household toilets across 15 villages through Atul Foundation.
  • Visit of Ms Arundhati Bhattacharya, Chairperson of State Bank of India, to Atul Vidyalaya.
  • Established a JV with Nouryon of the Netherlands, Anaven LLP, to produce MCA.
  • Inaugurated office in Thane on March 2017.

2017-2018

  • Developed 34 products and formulations and introduced 35 new products.
  • Debottlenecked capacities in 24 products and Executed 6 expansion projects.

2018-2019

  • Atul Bioscience Ltd (ABL), a 100% subsidiary company, acquired manufacturing facilities of Polydrug Laboratories Private Limited at MIDC.
  • Developed 23 new products and formulations and Introduced 30 new products.
  • Increased yield of 3 products.
  • Entered into 8 new geographies.

2019-2020

  • Developed 35 new products and formulations and introduced six new products.
  • Entered 14 new geographies
  • Atul’s JV -- Anaven -- gets environmental clearance to expand MCA production in India.
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