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    Buy Atul, target price Rs 7,500: Anand Rathi

    Synopsis

    Company has reported net profit after tax of Rs 172.62 Crore in latest quarter.

    buy-sellThinkStock Photos
    Representative image
    Anand Rathi has given a buy rating to Atul Ltd with a target price of Rs 7,500. The stock closed at Rs. 5,991.50 on BSE.

    Investment Rationale
    The brokerage expects sales/EBITDA/PAT to grow 17 per cent/18 per cent/16 per cent. The brokerage rolls forward thier valuation to FY23 and assign a Buy rating with a higher target of Rs7,500, ascribing an implied multiple of 25x FY23e EPS and 15.4x FY23e EV/EBITDA. Risks involved are drop in spreads of major products, delay in capex and debottlenecking implementation, erratic increase in crude and derivatives prices.

    Financials
    For the quarter ended 30-09-2020, the company has reported a Consolidated sales of Rs 1002.09 Crore, up 51.70 per cent from last quarter Sales of Rs 660.56 Crore and down 4.16 per cent from last year same quarter Sales of Rs 1045.63 Crore. Company has reported net profit after tax of Rs 172.62 Crore in latest quarter.
    Atul LtdAgencies
    Promoter/FII Holdings
    Promoters held 44.8 per cent stake in the company as of Sept 30, 2020, while FIIs held 8.2 per cent and DIIs held 9.5 per cent and public and others 23.6 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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