Motilal Oswal's research report on Atul
Atul’s (ATLP) 4QFY25 revenue came in line with our expectation. The Life Science Chemicals (LSC) segment’s revenue increased 18% YoY, while the Performance & Other Chemicals (P&OC) segment’s revenue rose 21% YoY. Gross margin came in at 49.7% (-10bp YoY), while EBITDAM expanded 320bp YoY to 15.4%. EBITDA grew 51% YoY to INR2.2b, and PAT jumped 121% YoY to INR1.3b.
Outlook
The stock is trading at ~29x FY27E EPS of INR241.4 and ~16x FY27E EV/EBITDA. We value the stock at 35x FY27E EPS to arrive at our TP of INR8,450. We reiterate our BUY rating on the stock.
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