Atul Ltd.
NSE: ATULAtul Ltd.: A 30-second snapshot
Atul Ltd (Chemicals) trades at ₹7,100 — up 3.71% over 12 months and 6.54% over 3 months — with trailing PE of 30.9 and forward PE of 23.5, both below sector peers Pidilite (PE 61.0) and Solar Industries (PE 93.5). FY26 results showed a 62% YoY rise in Q4 net profit and a ₹30 dividend, while the balance sheet carries a debt-to-equity ratio of 2.907 on a rising trend and FCF positive in only 3 of available years.
P/E
30.9
Forward P/E
23.5
ROE
+11.5%
Debt / Equity
2.91
Profit Margin
+10.8%
Div. Yield
+0.4%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
62/100
News
8 headlines · 6 positive · 0 negative
Atul Ltd Reports Strong FY26 Results with ₹689.39 cr Net Profit & ₹30 Dividend - scanx.trade
scanx.trade
This Chemical Company Announces Bumper Dividend Of Rs 30 Per Share — Check Details - NDTV Profit
NDTV Profit
ATUL: Strong revenue and profit growth, dividend proposed, and MD reappointed for five years - TradingView
TradingView
Atul Ltd Financial Growth and ₹30 Dividend for FY2026 - InvestyWise
InvestyWise
Atul gains after Q4 PAT climbs 62% YoY to Rs 211 cr - Business Standard
Business Standard
Recent context
- ·FY26 results (April 2026) showed full-year net profit of ₹689.39 cr and Q4 PAT up 62% YoY to ₹211 cr, alongside a ₹30/share dividend and the MD reappointed for five more years — the combination drove positive news sentiment (6 of 8 articles positive, 0 negative).
- ·The 1-year price return of +3.71% significantly lags the magnitude of the earnings recovery reported, a divergence consistent with the market having priced in the recovery earlier in the cycle or with ongoing concern about balance sheet leverage.
- ·Nearest resistance sits at ₹7,180 (~1.1% above current price); support levels are at ₹6,045.50, ₹5,977, and ₹5,560.50 — a range of 14.9% to 21.7% below current price, reflecting the asymmetric structure of nearby levels.
Strengths
- +5-year earnings growth of 66.1% against revenue growth of 15% demonstrates significant margin expansion over the cycle, with FY26 full-year net profit of ₹689 cr confirming the recovery trajectory.
- +Trading at forward PE of 23.5 versus Pidilite at 60.97 and Solar Industries at 93.46, ATUL is priced at a discount to the higher-quality end of the Chemicals peer set.
- +Price is above both the 50-DMA (₹6,540) and 200-DMA (₹6,267) with RSI at 63.9 (neutral-to-firm range), and the stock is only 8.53% below its 52-week high.
- +Analyst mean rating of 1.82 across 11 analysts (1–5 scale, lower = more constructive), with a ₹30/share dividend declared for FY26 (yield ~0.42% at current price).
Weaknesses
- −ROE of 11.53% has never exceeded 15% in available history (roeYearsAbove15 = 0), ranking ATUL 5th of 6 Chemicals peers by ROE — behind Pidilite (23.52%), Solar Industries (31.33%), Coromandel (15.59%), and SRF (13.76%).
- −Debt-to-equity of 2.907 is on a rising trend, and FCF was positive in only 3 of available years (consistency score 26/100), raising questions about whether earnings improvement is being matched by equivalent cash generation.
- −Quality score of 57 ranks 3rd of 6 in the Chemicals peer set — above mid-pack, but below Pidilite (66) and Solar Industries (61); consistency score of 26/100 is the weakest in the available data.
- −Profit margin of 10.81% is modest for specialty chemicals, and 5-year revenue growth of 15% is slower than would typically anchor the elevated 66.1% earnings growth — indicating base-effect dependency.
Open questions
- ?Does the 5-year earnings growth of 66.1% reflect a structurally improved business model, or is it predominantly a recovery from depressed FY21–FY22 margins that may not sustain at current rates?
- ?With debt-to-equity at 2.907 on a rising trend and FCF positive in only 3 of available years, how is the company financing its capex — and what is the trajectory of interest coverage given rising debt?
- ?How does ATUL's forward PE of 23.5 compare to its own historical range, and does the current valuation already reflect the FY26 earnings rebound visible in the Q4 results?
- ?Given that the MD has been reappointed for five years and FY26 results are strong, what is the company's stated capital allocation priority — debt reduction, dividend growth, or capacity expansion?
Peer comparison: Chemicals
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ATUL | Atul Ltd.You're viewing | 30.9 | +11.5% | 57 |
| Industry avg | across 5 peers | 51.7 | +21.1% | 45 |
| PIDILITIND | Pidilite Industries Ltd. | 61.0 | +23.5% | 66 |
| SOLARINDS | Solar Industries India Ltd. | 93.5 | +31.3% | 61 |
| SRF | SRF Ltd. | 43.5 | +13.8% | 41 |
| COROMANDEL | Coromandel International Ltd. | 28.2 | +15.6% | 30 |
| PIIND | PI Industries Ltd. | 32.6 | — | 25 |
Technical state
Current price
₹7,100.00
SMA 50
₹6,540.14
SMA 200
₹6,266.48
RSI (14)
63.9 (neutral)
From 52w high
-8.5%
1Y return
+3.7%
3M return
+6.5%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumROE of 11.53% has never exceeded 15% in available history (roeYearsAbove15 = 0), placing ATUL 5th of 6 ranked peers in the Chemicals sector by ROE; Pidilite Industries at 23.52%, Solar Industries at 31.33%, and Coromandel at 15.59% all rank higher.
- mediumDebt-to-equity of 2.907 is on a rising trend and FCF was positive in only 3 of available years (consistency score 26/100), indicating that reported earnings growth has not translated uniformly into cash generation.
- low5-year earnings growth of 66.1% against 5-year revenue growth of 15% reflects recovery from a low earnings base rather than compounding structural improvement; profit margin of 10.81% is modest relative to specialty-chemicals peers.
- lowStock is 8.53% below its 52-week high with a single identified resistance at ₹7,180 — approximately 1.1% above the current price of ₹7,100 — while support levels begin at ₹6,045.50, roughly 14.9% lower.
Cross-section contradictions
- Q4 FY26 net profit rose 62% YoY and full-year FY26 results were described as strong across news flow (6 of 8 articles positive, 0 negative), yet the 1-year price return is only +3.71%, suggesting the market had largely anticipated the earnings recovery cycle.
- 5-year earnings growth of 66.1% is sharply higher than 5-year revenue growth of 15%; combined with rising D/E and FCF positive in only 3 of available years, this pattern is consistent with margin expansion from a depressed base rather than durable cash-backed compounding.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days