Valuations for the sector are, by and large, not expensive but not cheap either. In some cases, it is close to the long-term averages and should be evaluated case by case.
High-cost inventory of raw materials is a key worry when global growth is faltering
Notwithstanding operational headwinds and higher working capital, Atul remains on track for a three-year capex cycle
We believe that even if the domestic equity market underperforms global indices, the Indian chemicals sector should be resilient in the near- to medium-term. Atul is one of the preferred proxies to play this theme
Basic chemical player Amal warrants investors’ attention just as APIs in the pharma space are getting policy attention
For global MNCs, the current crisis adds to the growing theme of sourcing chemicals from India as an alternative. Atul industries is a clear favourite in this scheme of things
Atul Industries is better positioned to deal with near-term hurdles with respect to operations, supply chain and working capital management
Investors need to be mindful of volatility in the midcap space and should capitalise on the weakness