Whalesbook
Brokerage analysts maintain a positive outlook on Atul Ltd, reiterating a 'Buy' rating with a target price of ₹8,500 following a visit to the company's expansive integrated complex in Atul, Gujarat. The sprawling 1,350-acre facility, established in 1947, is a manufacturing hub for over 900 products and 400 formulations across four distinct divisional zones.
During the visit, executives highlighted key operational details. The new liquid epoxy resin (LER) plant is currently operating at approximately 75-80% utilization of its debottlenecked capacity, primarily driven by domestic demand for windmill applications. Exports to the U.S. market have seen an impact due to tariffs.
Furthermore, the report notes an abundant supply of ECH (Epichlorohydrin) with new capacities coming online in Southeast Asia. Atul Ltd's integrated complex benefits from captive power plants that sufficiently meet its energy demands, including the caustic soda plant. The company also holds a competitive advantage in exporting 2,4-D to the United States.
Innovation and research are central to Atul's strategy. The company boasts an R&D team of 223 members and has filed for 18 patents, with 9 already granted. Analysts have slightly trimmed their FY27E Earnings Per Share (EPS) estimate by about 5% to account for near-term EBITDA margin pressure stemming from weaker U.S. export volumes. The EPS estimates have also been rolled over to December 2027 earnings.