Fact based stock research
Atul (BSE:500027)

INE100A01010

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Atul stock research in summary

atul.co.in

ANALYSIS: With an Obermatt Combined Rank of 53 (better than 53% compared with investment alternatives), Atul (Diversified Chemicals, India) shares have above-average financial characteristics compared with similar stocks. Shares of Atul are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives) and show below-average growth (Growth Rank of 45) but are safely financed (Safety Rank of 79), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 53, is a buy recommendation based on Atul's financial characteristics. As the company Atul's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 35) and low growth (Obermatt Growth Rank of 45), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 79) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	India
Industry	Diversified Chemicals
Index	Wind Energy
Size class	Medium

This stock has achievements: Top 10 Stock.

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Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Atul

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	17	25	27	n/a
GROWTH
GROWTH	39	75	9	n/a
SAFETY
SAFETY	82	73	83	n/a
SENTIMENT
SENTIMENT	n/a	6	10	^new
360° VIEW
360° VIEW	n/a	29	10	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Atul is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	17	25	27	n/a
GROWTH
GROWTH	39	75	9	n/a
SAFETY
SAFETY	82	73	83	n/a
COMBINED
COMBINED	37	69	21	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Atul the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 35 (worse than 65% compared with alternatives), Atul shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Atul. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 53, which means that the stock price is lower compared with invested capital than for 53% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 44 which means the stock price compared with what market professionals expect for future profits is higher than 56% of comparable companies, indicating a low value concerning Atul's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 53 and for the dividend yields rank which is lower than for 65% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 35, is a hold recommendation based on Atul's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Atul, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	9	24	45	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	32	24	17	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	18	48	53	n/a
DIVIDEND YIELD
DIVIDEND YIELD	36	16	26	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	17	25	27	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Atul; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 45 (better than 45% compared with alternatives), Atul shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Atul. Sales Growth has a rank of 65 which means that currently, professionals expect the company to grow more than 65% of its competitors. Capital Growth is also above 29% of competitors with a rank of 81. But Profit Growth only has a rank of 29, which means that currently professionals expect the company to grow its profits less than 71% of its competitors. And Stock Returns have also been below average with a rank of only 23. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 45, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	38	65	67	n/a
PROFIT GROWTH
PROFIT GROWTH	n/a	26	28	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	81	4	n/a
STOCK RETURNS
STOCK RETURNS	52	79	17	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	39	75	9	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Atul.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 79 (better than 79% compared with alternatives) for 2025, the company Atul has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Atul is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Atul. Leverage is at a rank of 92, meaning the company has a below-average debt-to-equity ratio. It has less debt than 92% of its competitors. Liquidity is also good at a rank of 82, meaning the company generates more profit to service its debt than 82% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 38, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 62% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 79 (better than 79% compared with alternatives), Atul has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Atul. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Atul and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	60	78	92	n/a
REFINANCING
REFINANCING	48	39	37	n/a
LIQUIDITY
LIQUIDITY	100	86	82	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	82	73	83	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Atul and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	20	11	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	32	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	53	22	^new
MARKET PULSE
MARKET PULSE	n/a	37	11	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	6	10	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Atul.
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