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Atul Ltd

NSE: ATUL BSE: 500027

6255

(0.02)%

Fri, 06 Feb 2026, 04:19 am

Analysis

dividend

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Pros

  • Dividends after 3 years are expected to be thoroughly covered by earnings (9.9x coverage).
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Cons

  • Atul is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
  • No need to calculate the sustainability of Atul's dividends as it is not paying a notable one for India.
  • Atul is not paying a notable dividend for India, therefore no need to check if the payments are stable.
  • Atul's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Atul's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Performance (ROE) is expected to be above the current IN Chemicals industry average.
  • Atul's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Atul is expected to decrease over the next 2 years.
  • Atul's earnings are expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
  • Atul's earnings growth is positive but not above the India market average.
  • Atul's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • Atul's earnings are expected to decrease over the next year.
  • Atul's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Atul is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Atul's performance (ROE) is expected over the next 3 years.
  • Atul's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Atul's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Atul is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Atul is profitable, therefore cash runway is not a concern.
  • Atul is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (908.9%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 21.5x debt.
  • Atul's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (28.5% vs 3% today).
  • Interest payments on debt are well covered by earnings (EBIT is 82.1x coverage).
  • Atul's level of debt (3%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Atul board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • Sunil's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Sunil's remuneration is higher than average for companies of similar size in India.

past

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Pros

  • Atul's 1-year earnings growth exceeds its 5-year average (53.9% vs 19%)
  • Atul's year on year earnings growth rate has been positive over the past 5 years.
  • Atul used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
  • Atul has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
  • Atul has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Atul's earnings growth has exceeded the IN Chemicals industry average in the past year (53.9% vs 9.1%).
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Cons

    value

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    Pros

    • ATUL outperformed the Chemicals industry which returned 2.2% over the past year.
    • ATUL outperformed the Market in India which returned -14.5% over the past year.
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    Cons

    • Atul's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Atul's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Atul is overvalued based on assets compared to the IN Chemicals industry average.
    • Atul is poor value based on expected growth next year.
    • Atul is overvalued based on earnings compared to the IN Chemicals industry average.
    • Atul is overvalued based on earnings compared to the India market.
    • NSEI:ATUL is down -2.5% underperforming the Chemicals industry which returned 6.9% over the past month.
    • NSEI:ATUL is down -2.5% underperforming the market in India which returned 8% over the past month.

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    Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800