Buy Atul; target of Rs 7520: Motilal Oswal

Motilal Oswal is bullish on Atul has recommended buy rating on the stock with a target price of Rs 7520 in its research report dated October 17, 2025.

Broker Research

October 23, 2025 / 10:18 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Atul

Atul (ATLP) reported in-line revenue of INR15.5b (+11% YoY) in 2QFY26. Revenue from the Performance & Other Chemicals segment increased 12% YoY, while the Life Science Chemical segment’s revenue rose 8% YoY. EBITDA grew 10% YoY to INR2.7b and PAT increased 31% YoY to INR1.8b. We broadly retain our estimates for FY26/FY27/FY28. We estimate a CAGR of 12%/14%/17% in revenue/EBITDA/PAT during FY25-28E. The stock is trading at ~23.8x FY27E EPS of INR250.5 and ~14.3x FY27E EV/EBITDA. We value the stock at 30x FY27E EPS to arrive at our TP of INR7,520. Reiterate
BUY.

Outlook

We largely maintain our earnings and reiterate our BUY rating on the stock. We value the stock at ~30x FY27E EPS to arrive at our TP of INR7,520. The upside risk could be a faster-than-expected ramp-up of new projects and products.

For all recommendations report, click here