chemicals

Atul Ltd

ATUL · Nifty 50

6,455

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionchemicals sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score100/100 (STRONG). 0 positive flags, 1 concerns.
Historical Context47 similar technical setups. Average outcome: -7.6% decline. 0% positive.

Fundamental

100/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Atul Ltd scores 100/100 on fundamentals (strong). Atul Ltd: BROAD EXPANSION regime.

Fundamental Score: 100/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 10.1% broken into three drivers. Each shows how efficiently the company generates returns.

ROE10.1%=
10.1%Net Margin
×
0.8xTurnover
×
1.3xLeverage

ROE of 10.05% is moderate margin-driven and stable. Net margin of 10.1% × asset turnover of 0.78x × leverage of 1.3x.

What This Means

Net margin of 10.1% means the company keeps ₹10.1 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.78x means the company efficiently uses its assets to generate revenue. Leverage of 1.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

48.0%

Operating

14.1%

Net

10.1%

improving

Gross margin 48.0% → operating margin 14.1% → net margin 10.1%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 1.6x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

COMFORTABLE

Interest covered 48.6x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.2x is low — balance sheet has capacity.

Free Cash Flow

STRONG

FCF margin at 13.7% — strong cash generation. Business is self-funding.

Peer Comparison

Atul Ltd is compared against 10 peers in the chemicals sector.

Key Watchpoints

🟢

Breaks above ₹6778 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹6132 (-5%)

Further downside risk

🟢

Chemicals sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition
✅ High Earnings Quality: Cash flow covers earnings 1.6x — strong cash conversion

Risk Flags

🔴 1 Critical1 total flags
🔴Cash covers only 8% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️ 1 critical + 0 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
28.3UNAVAILABLE
P/B Ratio
3.1HIGH
Market Cap
₹1918866.4L CrHIGH
From 52W High
83% of high
Sector Peers
10
Atul Ltd Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight