Pricing pressure continues to hurt performance

03 May 2024
5 Min read 
  • Atul's 4QFY24 results update includes changes in estimates, target price, and rating.
  •  Revenue in Life Science Chemicals segment declined 8% YoY, while it increased 5% YoY in Performance & Other Chemicals segment.
  •  Gross margin came in at 49.7% (+390bp YoY), while EBITDAM contracted 30bp YoY to 12.2%.
  •  Due to underperformance in FY24, EPS estimate for FY25 and EBITDA/EPS estimate for FY26 were cut.
  •  The stock is trading at 37x FY26E EPS of INR162 and 20.7x FY26E EV/EBITDA.
  •  The financials show a decline in revenue, EBITDA, and PAT for FY24.
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