Anand Rathi's research report on Atul
Atul invested ~Rs20bn over the last three years in setting up capacity (capex matching the cumulative investment over the last decade). In its analyst meet, management highlighted unrealized sales potential of over Rs25bn from recently concluded capex (~Rs17bn) and from previously unutilized capacity (~Rs8bn).With technical issues resolved and regulatory clearances in progress, these assets are set to scaleup.We are positive regardingthe company’s growth trajectory and believe that ramp-up of recently commercialized plants with demand recovery will drive profitability.
Outlook
We expect revenue/EBITDA/PAT CAGRs of 15%/ 20%/ 30% over FY25-27, and resume coverage on the stock with a Buy rating and a TP of Rs 8300 (30x FY27e EPS).
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