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FINVESTEDGE : 10 Years Investment of ₹ 1 Lakh turned into ₹ 50 Lakhs

A leading integrated chemical manufacturer deserves attention as it benefits from improved end markets, supply side reforms in China and growing reliance on India as a favoured destination for sourcing chemicals.

In the last one year, the company achieved fairly higher realisations, but going ahead we expect realisations to stabilise and major growth to come on the back of higher volumes

While company's foray into new products and available capacity bandwidth will keep it ready for meeting demand, efforts on backward integration and lower finance cost are expected to further aid bottom-line growth.
The company repaid its debt last fiscal year which provides scope to fund capacity expansion program in future.

A debt free balance sheet with strong free cash flow (FCF) (Rs 516 crore over FY14-19) despite capex shows the management’s judicious capital deployment. Strong 20 per cent average return on capital employed (RoCE) over last five years, with average working capital days of nearly 84 days speaks for the efficiency in all parameters

Company has a good return on equity (ROE) track record: 3 Years ROE 15.71%
Company is debt free.
Company has been maintaining a healthy dividend payout.
Good Quality Company on basis of its long term financial performance

Time Period
Price Return
CAGR
6 Months
13.29%
28.34%
1 Year
16.11%
16.11%
3 Year
73.17%
20.09%
5 year
175.74%
22.49%
10 Year
4664.32%
47.16%


Image Source: Screener

Atul Ltd



Company Details:

Ø  Atul Ltd was incorporated in the year 1947.
Ø  It is in the business of Life Science Chemicals and Performance and Other Chemicals.
Ø  It caters to the needs of varied industries across the world such as Adhesives, Agriculture, Animal Feed, Automobile, Composites, Construction, Cosmetic, Defence, Dyestuff, Electrical and Electronics, Flavour, Food, Footwear, Fragrance, Glass, Home Care, Horticulture, Hospitality, Paint and Coatings, Paper, Personal Care, Pharmaceutical, Plastic, Polymer, Rubber, Soap and Detergent, Sport and Leisure, Textile, Tyre and Wind Energy.

MARKET CAPITAL:
Atul Ltd is a Mid Cap Company having a market cap of ₹ 11,084 Crore.

SECTOR:
The Company is operating in DYES & PIGMENTS sector.

RESULTS:

SALES:
For the year ended 31-03-2019, the company has reported a Consolidated Sales of ₹ 3915.81 Crore, up 26% from last year Sales of ₹ 3107.49 Crore.


For the quarter ended 30-06-2019, the company has reported a Consolidated Sales of ₹ 993.30 Crore, up 12% from last year same quarter Sales of ₹ 888.06 Crore and the last quarter Sales was ₹ 1000.84 Crore.

NET PROFIT:

Company has reported net profit after tax of ₹ 429 Crore for the year ended 31-March-2019, up 59% from last year Net Profit of ₹ 270 Crore.

It has reported net profit after tax of ₹ 130 Crore in latest Quarter, up 54% from last year same quarter Net Profit of ₹ 84 Crore and the last quarter Net Profit was ₹ 109 Crore.




Stock Price Details:
CMP – ₹ 3737
Book Value – ₹ 893.31
Face Value - ₹ 10

Price History:
1-Year Beta – 0.46
52 Week High – ₹ 4160
52 Week Low - ₹ 2830

Shareholding
Category
Percentage
Promoter Group
44.70%
Foreign Institution
6.90%
Financial Institutions
28.34%
General Public
20.06%

Mutual Fund Holding
Held in Mutual Fund schemes which include –
  1. HDFC Mid-Cap Opportunities Fund (G)
  2. HDFC Hybrid Equity Fund (G)
  3. DSP Small Cap Fund - Regular Plan (G)
  4. DSP Mid Cap Fund - Regular Plan (G)
  5. Franklin India Smaller Companies Fund (G) 
Valuation:
Stock P/E – 23.37
Price to book value – 4.18

Compounded Sales Growth
10 Years – 13.07%
5 Years – 10.82%
3 Years – 16.85%
TTM – 20.19%

Compounded Profit Growth
10 Years – 27.40%
5 Years – 14.97%
3 Years – 16.16%
TTM – 48.10%

Return on Equity:
10 Years – 17.46%
5 Years – 17.24%
3 Years – 15.71%

FINVESTEDGE is made to educate the fellow investors about the market and how the market works. This is made purely for education purpose which contains simple ideas on investing and how investors must behave while dealing with their money.
Email – finvestedge.in@gmail.com
Happy Investing!
FINVESTEDGE

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