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Atul Q1: Pharma and agrochem cushion the Covid impact

Atul Industries is better positioned to deal with near-term hurdles with respect to operations, supply chain and working capital management

September 02, 2020 / 02:44 PM IST
Atul Q1: Pharma and agrochem cushion the Covid impact

PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Highlights - Q1 performance hugely impacted for both Atul and Amal - Amal considering major capex; Atul executing ~Rs500 crore capex - China supply chain shift opportunity presents market share gains - Atul preferred play; accumulate on decline Shares of integrated chemicals manufacturer Atul Industries (CMP: Rs 5,944, Market Cap: Rs 17,633 crore) and its microcap subsidiary Amal Ltd (CMP: Rs 168, Market Cap: Rs 158 crore) have seen a decent rally after the equity market slump in March. Leading chemical entities with a stranglehold over a range...

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