NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Atul Ltd's Q1 FY25 earnings print was strong driven by healthy revenue growth in life sciences with a jump in two, four-D exports volumes; and a leap in the performance segment's Ebit margin, improving 760 basis points QoQ to 9.1%.
The performance segment benefited from notable growth in exports volume for key products, and commissioning of Chloralkali plant. Costs are generally benign for Atul during the first quarter, and grow through the year – we noted this in FY24 too.
Net profit growth is restricted to just 8.3% YoY due to higher depreciation cost and tax rate. Nonetheless, the recovery has been much faster than our assumption, which is driving our earning per share estimates higher by 25%/9% for FY25/ FY26.
Our target price is revised to Rs 6,380 (from Rs 5,840; unchanged 28 times FY26E earning per share). Maintain 'Reduce'.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
