Atul: Next few quarters are tough

On a QoQ basis, in Q3 FY23, volumes for most of the chemical companies are anticipated to decline, except for the fluorochemicals and agrochemical companies

Anubhav Sahu
January 17, 2023 / 09:52 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Highlights Exports of organic chemicals have declined substantially in FY23 Volumes fall in key portfolio products Realisation and margin compressions to follow Valuation at premium to long-term averages In FY23, export volumes of organic chemicals have dropped on the back of destocking and slowdown in key export regions. This has led to a differentiation between domestic-oriented and export-oriented chemical companies in India. Atul (CMP: Rs 7,753; Market cap: Rs 22,876 crore), which gets about 45 percent of sales from exports, is one the...