dynamic levels atul ltd 4 source: company, businesses of atul atul aromatics with a portfolio of 29...

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Source: Company, www.dynamiclevels.com

Company’s Overview anStock Price

Atul Limited: Touching Lives

Company Overview and Stock Price 3

Businesses of Atul 4

Company Financials 6

Shareholding Pattern 11

Peer Comparison 11

Chemical Industry outlook 12

Growth Prospects of Atul 13

Investment Rationale 15

Vikash Kandoi – [email protected]

mailto:[email protected]


Company Overview and Stock Price

Atul is a chemical conglomerate company serving about 5700 customers belonging to 31 industries across the world. With depth in science and technology, Atul manages almost all unit processes and unit operations to manufacture about 1380 products and formulations and has state-of-the-art facilities and processes to ensure safety and treatment of gaseous, liquid and solid pollutants.

The company has established subsidiary companies in the USA (1994), the UK (1996), Germany (1998), China (2004), Brazil (2012), and the UAE (2015) to serve its customers and thus enhance breadth and depth of its business. It has

» Production facilities in India (Ankleshwar and Valsad, Gujarat and Tarapur, Maharashtra) » Subsidiary company with production facility in the UK (Bristol) » Joint venture companies with production facilities in India (Valsad, Gujarat and Jodhpur, Rajasthan) » Distribution network for brand sales across India »Wholly-owned subsidiary companies in Brazil (Sao Paulo), China (Shanghai), the UAE (Dubai), the UK (Wilmslow) and the USA (Charlotte, North Carolina) . » Manufactures about 920 products and 460 formulations divided into Life Science Chemicals and Performance and Other Chemicals Segments » Serves about 6,000 customers in 68 countries » Owns 69 brands

EXCHANGE SYMBOL ATUL (NSE)

Sector CHEMICALS

Current Price * (Rs.) 2287.45

Face Value (Rs.) 10

52 Week High (Rs.) 2492.00 (21-Oct-16)

52 Week Low (Rs.) 1300.00 (16-Feb-16)

Life Time high (Rs.) 2492.00 (21-Oct-16)

Life Time low (Rs.) 8.70 (04-Oct-01)

Average Daily Movement [ADM] 73.83

Average Volume [20 days] 22903

1 Month Return (%) 5.73

Trailing PE Ratio 23.95

Book Value 429.75

Market Cap 6833.77 (Cr)

% of Promoter holding pledged 13.11

COMPANY PROFILE OF ATUL, NSE, INDIA

Date of Incorporation 11-Dec-75

Date of Listing 6-Dec-94

Management

Name Designation

Satguru Baijal Director

Rajendra Shah Director

Mukund Chitale Director

Hasmukh Shah Director

Bansi Mehta Director

Baldev Arora Director

Shubhalakshmi Panse Director

Samveg Lalbhai Managing Director

Gopi Kannan Thirukonda

WholeTime Director & CFO

Bharathy Mohanan WholeTime Director & President

Registered Office Address

Atul House, G I Patel Marg,380014, Ahmedabad,Gujarat,India

Website http://www.atul.co.in


Businesses of Atul Atul Aromatics With a portfolio of 29 world-class products, Atul Aromatics is serving 289 customers in 27 countries. The R&D facility of Atul is located in Ankleshwar. The main focus of this department is to improve the existing processes and introduce new products. Atul Aromatics has a strong team of 244 people and is well equipped to serve its customers around the world. Bulk Chemicals and Intermediates

Atul Bulk Chemicals and Intermediates was established in 1960 to meet the captive requirement of the Company of Sodium hydroxide, Chlorine, Sulphuric acid, Oleum, Sulphur trioxide, etc. It has a distinction being the only manufacturer of Resorcinol in India. It also manufactures value added products like Resorcinol formaldehyde resins, 1-3 Cyclohexanedione and Anisole. With a portfolio of 26 world-class products, Atul Bulk Chemicals and Intermediates is serving over 200 customers in more than 20 countries. Colors Business

Colors business is the oldest business of Atul. The business was established in 1952 to meet the requirements of textile dyestuffs then entirely imported into India. It offers a complete range of textile and paper dyestuffs; it also manufactures high performance pigments. Rudolf Atul Chemicals Ltd, a 50-50 JV between Rudolf GmbH and Atul offer a complete range of textile chemicals to its customers in India. It has a distinction of manufacturing several dyestuffs and pigments for the first time in India. With a portfolio of 526 world-class products, Atul Colors is serving 700 customers in 40 countries.

The largest manufacturer of p-Cresol in the world.

The largest manufacturer of perfumery

grade p-Anisic aldehyde in the world.

The largest manufacturer of p-Anisic

alcohol in the world.

One of the leading manufacturers of p-Cresidine.

One of the leading manufacturers of p-Anisyl nitrile.

One of the leading manufacturers of p-

Methoxy phenyl acetic acid.

The only manufacturer of Resorcinol in

India.

The only integrated manufacturer of

Resorcinol and Resorcinol Formaldehyde

Resins (RESOFORM) in India.

One of the largest manufacturers of

1,3 Cyclohexanedione in India.


Anisole in India.

One of the leading manufacturers of

Sulphur trioxide and Sulphur dioxide in

India.


Vat dyes in the world.

The largest manufacturer of Sulphur

Black dyes in India.


speciality acid, direct disperse, reactive

dyes.

Majority of dyestuffs certified by

Global Organic Textile Standard

(GOTS).

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Crop Protection

Atul Crop Protection was established in 1967 to meet the demand of Agriculture Industry of India. It has a distinction of manufacturing 2,4-D Acid, Benzyl chloroformate, Sulfonylurea herbicides and Isoprothiolane for the first time in India.

With a portfolio of 60 world-class products, Atul Crop Protection is now serving 1,563 customers in 38 countries.

Floras

Atul Floras was established in 2002 to meet the requirement of good quality tissue culture raised planting material of different crops for the farming community. It has a distinction of producing tissue culture raised date palms plants of different varieties for the first time in India. With a portfolio of 33 world-class products, Atul Floras is serving 100 customers in 4 countries.

Pharmaceuticals and Intermediates

Atul Pharmaceuticals and Intermediates was established in 1999 to meet the demand of Pharmaceutical Industry. With a portfolio of 30-world class products, Atul Pharmaceuticals and Intermediates is serving 150 customers in 20 countries.

Polymers Atul Polymers was established in 1960 to meet the requirement of epoxy hardeners and resins then entirely imported into India. It manufactures complete range of epoxy hardeners and resins; it also manufactures Chloroprene rubber and Polyurethane based adhesives. With a portfolio of 450 world-class products, Atul Polymers is serving 1,180 customers in 21 countries.


2,4-D Acid, 2,4-D Sodium, 2,4-D

Amine and 2,4-D Esters in the world.


Indoxacarb in India.


Benxyl chloroformate in the world.


Sulfonylurea herbicides and

Isoprothiolane in India.

The largest producer of tissue cultured

date palms in India.

Distinction of manufacturing Dapsone

for the first time in India.

The largest manufacturer of 3,3’-

Diaminodiphenyl sulfone and 4,4’-

Diamino diphenyl sulfone in the world.


Epoxy hardeners and resins in India.


In Cr Dec'16 Sep'16 Dec'15 Quarterly Growth

Quarterly Quarterly Quarterly QoQ YoY

Net Sales/Income from operations 626.57 685.18 592.18

Other Operating Income 13.71 13.61 13.52

Total Income From Operations 640.28 698.79 605.7 -8.37% 5.71%

Increase/Decrease in Stocks -5.98 4.88 3.78

Consumption of Raw Materials 313.61 327.23 296.58

Purchase of Traded Goods 4.51 5.05 2.92

Power And Fuel 81.62 84.21 65.32

Employees Cost 43.88 44.17 44.09

Depreciation 23.41 22.34 15.74

Other Expenses 93.83 90.31 89.25

Total Expenditure 554.88 578.19 517.68 -4.03% 7.19%

Operating Profit 85.4 120.6 88.02

Other Income 3.18 10.57 7.14

P/L Before Int., Excpt. Items & Tax 88.58 131.17 95.16

Interest 5.81 5.07 7.68 14.60% -24.35%

P/L Before Exceptional Items & Tax 82.77 126.1 87.48

Tax 24.19 43.78 26.54

PAT 58.58 82.32 60.94 -28.84% -3.87%

Equity Share Capital 29.66 29.66 29.66

EPS (Rs.) [Before Extraordinary items] 19.75 27.76 20.54 -28.85% -3.85%

The Company is showing a significant growth in its top line in YoY, however the current quarter performance was not up to mark. But

Company has lower down its interest cost.


Annual Income Statement(Cr) Mar-16 Yearly

Mar-15 Yearly

Mar-14 Yearly

Revenue From Operations [Gross] 2,714.05 2,782.23 2,555.78

Less: Excise/Sevice Tax/Other Levies 164.8 171.08 156.55

Revenue From Operations [Net] 2,549.25 2,611.15 2,399.23

Other Operating Revenues 52.19 45.24 58.52

Total Operating Revenues 2,601.44 2,656.39 2,457.75

Other Income 30.71 10.25 36.27

Total Revenue 2,632.15 2,666.64 2,494.02

Cost Of Materials Consumed 1,328.80 1,404.63 1,374.58

Purchase Of Stock-In Trade 21.11 29.82 24.18

Changes In Inventories Of FG,WIP And Stock-In Trade -25.01 10.96 -64.51

Employee Benefit Expenses 184.66 163.29 149.67

Finance Costs 27.57 25.69 33.44

Depreciation And Amortisation Expenses 65.79 60.27 58.26

Other Expenses 628.33 646.4 610.1

Total Expenses 2,231.25 2,341.06 2,185.72

Profit/Loss Before Tax 400.9 325.58 308.3

Tax Expenses-Continued Operations

Current Tax 109.09 85.36 79.01

Less: MAT Credit Entitlement 0.07 0 0.77

Deferred Tax 22.58 13.8 9.81

Tax For Earlier Years 0.02 0.21 0.04

Total Tax Expenses 131.62 99.37 88.09

Profit/Loss For The Period 269.28 226.21 220.21

Minority Interest -0.06 0.17 0.26

Share Of Profit/Loss Of Associates 0.1 14.27 -1.28

Consolidated Profit/Loss After MI And Associates 269.32 240.65 219.19

Basic EPS (Rs.) 90.8 81.13 73.9

Diluted EPS (Rs.) 90.8 81.13 73.9

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 29.66 25.21 22.25

Tax On Dividend 6.82 5.61 3.85

Atul is showing a steady growth of around 10% to 11% in its Net Profitability

Annually


Balance Sheet (Cr) Mar-16

Mar-15

Mar-14

EQUITIES AND LIABILITIES

Equity Share Capital 29.68 29.68 29.68

Total Share Capital 29.68 29.68 29.68

Revaluation Reserves 0 108.97 108.97

Reserves and Surplus 1,245.04 900.34 809.97

Total Reserves and Surplus 1,245.04 1,009.31 918.94

Total Share holders’ Funds 1,274.72 1,038.99 948.62

Minority Interest 5.62 5.68 5.92

NON-CURRENT LIABILITIES

Long Term Borrowings 24.45 58.57 119.49

Deferred Tax Liabilities [Net] 68.67 46.09 37.09

Other Long Term Liabilities 23.1 19.43 1

Long Term Provisions 17.45 16.04 5.33

Total Non-Current Liabilities 133.67 140.13 162.91

CURRENT LIABILITIES

Short Term Borrowings 251.5 175.98 192.88

Trade Payables 306.88 272.19 322.96

Other Current Liabilities 125.38 146.54 138.89

Short Term Provisions 44.03 43.56 43.47

Total Current Liabilities 727.79 638.27 698.2

Total Capital And Liabilities 2,141.80 1,823.07 1,815.65

ASSETS

NON-CURRENT ASSETS

Tangible Assets 749.65 513.44 569.9

Intangible Assets 0.12 0.22 0.37

Capital Work-In-Progress 180.68 112.05 59.08

Intangible Assets Under Development 0 0 0

Fixed Assets 930.45 625.71 629.35

Non-Current Investments 61.58 63.39 62.82

Long Term Loans And Advances 35.8 38.51 26.23

Other Non-Current Assets 57.35 54.54 64.64

Total Non-Current Assets 1,085.18 782.15 783.04

CURRENT ASSETS

Current Investments 1.87 2.66 0

Inventories 434.84 415.27 434.17

Trade Receivables 434.77 442.42 437.08

Cash And Cash Equivalents 22.83 36.73 21.05

Short Term Loans And Advances 130.44 110.25 102.88

Other Current Assets 31.87 33.59 37.43

Total Current Assets 1,056.62 1,040.92 1,032.61

Total Assets 2,141.80 1,823.07 1,815.65

The company has significantly reduced its long term borrowing


Cash Flow Statement (Cr) Mar-16 Mar-15 Mar-14

Net Profit/Loss Before Extraordinary Items And Tax 400.90 325.58 308.30

Net Cash Flow From Operating Activities 383.87 306.30 151.71

Net Cash Used In Investing Activities -350.02 -165.22 -83.06

Net Cash Used From Financing Activities -48.25 -125.27 -60.48

Foreign Exchange Gains / Losses 0.00 0.00 0.00

Adjustments on Amalgamation / Merger / Demerger / Others 0.00 0.00 0.00

Net Inc/Dec In Cash And Cash Equivalents -14.40 15.81 8.17

Cash And Cash Equivalents Begin of Year 33.87 18.06 9.89

Cash And Cash Equivalents End Of Year 19.47 33.87 18.06


Ratios

Valuation Ratios Fiscal Year

Mar-16 Mar-15 Mar-14

P/E 16.9 14.0 5.9

EV/EBIT 12.0 10.6 5.3

EV/EBITDA 10.3 9.0 4.5

P/S 1.7 1.3 0.5

P/B 3.6 3.2 1.4

Div Yield 65.2% 75.1% 172.9%

Profitability Ratios %

Fiscal Year


Gross Margin - - -

EBITDA Margin 18.1 15.2 14.9

Operating Margin 15.6 12.9 12.5

Profit Margin 10.4 9.1 8.9

Return on Assets 13.6 13.2 13.0

Return on Equity 23.3 24.2 25.7

Leverage and Coverage Ratio Fiscal Year


Current Ratio 1.5 1.6 1.5

Quick Ratio 0.6 0.8 0.7

EBIT/Interest 17.8 14.7 9.8

Tot Debt/Capital 0.2 0.2 0.3

Tot Debt/Equity 0.2 0.3 0.4

Eff Tax Rate % 32.8 29.2 28.7


Share Holding Pattern

Peer Comparison

Category & Name No. of Shareholder Shareholding % No of Shares

Promoter & Promoter Group 35 44.48 13192701

Indian 35 44.48 13192701

Public 30587 55.52 15625259

Institutions 170 25.49 7543998

Non Institution 30416 30.03 8081261

Central Government / State Government(s) / President of India 1 0 0

Non Promoter-Non Public 0 0 0

Grand Total 30622 100 28817960

Company Name Last Price 52 Wk High

52 Wk Low Net Sales Net Profit Profit Margin %

AARTI INDUSTRIES 785.85 817.6 418.2 770.23 73.84 9.59%

ATUL 2287.45 2492 1300 640.28 58.58 9.15%

BASF INDIA 1144.5 1348 700.55 1122.49 -47.22 -4.21%

BAYER CROPSCIENCE 4097.95 4595 3173.85 662.5 36.8 5.55%

BODAL CHEMICALS 133 154.5 49.05 275.69 31.56 11.45%

GUJARAT ALKALIES 393.5 433.6 144 485.84 47.32 9.74%

GUJARAT FLUOROCHEMICALS 501.9 666 421 1811.95 114.51 6.32%

JAYANT AGRO 593.15 639.9 101.65 465.75 12.98 2.79%

KIRI INDUSTRIES 292.3 405 72 256.99 22.36 8.70%

MEGHMANI ORGANICS 38.8 52.35 18.35 320.92 27.11 8.45%

PHILLIPS CARBON 270.6 289.7 80 485.47 17.47 3.60%

RALLIS INDIA 239.95 252.4 142.6 331.36 25.34 7.65%

SUDARSHAN CHEMICAL 350.05 455.35 78.75 283.1 12.16 4.30%

THIRUMALAI CHEMICALS 856.6 984.4 129.8 248.51 15.59 6.27%

The company has 170 total number of institution invested in the company with 25.49% of investment

Atul Ltd has net profit margin of 9.15% were average of the industry is 6.38%


Chemical Industry Outlook The chemicals industry faced significant headwinds in 2015: a strong dollar, slowing emerging economies, malaise in Brazil, stagnation in Europe and Japan, and a cyclical downturn in the agricultural sector. In addition to having to operate in an unfavorable economic environment, many chemicals companies also found themselves the target of activist investor campaigns last year. The World Chemical industry (size US$4.4 tn) grew by 2% in 2015: Indian Chemical industry (size US$103 bn) grew by 3%, but is still ranked 7 after China (size US$1.5 tn), the USA (size US$630 bn), Germany (size US$198 bn), Japan (size US$190 bn), South Korea (size US$165 bn) and France (size US$107 bn). According to a leading consulting firm, India has the potential to grow its Speciality Chemicals industry at 9%. Oversupply, continued volatility in crude oil prices and changing trade flows are just some of the common themes experienced by global chemical markets in 2015. Government Policies and FDI Investments Indian Government recognizes Chemical industry as a key growth element of Indian economy. In Chemical Sector, 100% FDI is permissible. The Government had Target to increase the share of manufacturing in GDP to at least 25% by 2025 (from current 16%). Investments in manufacturing in the chemical sector are absolutely essential to ensure growth of the Indian chemical industry. The Government had proposed to set up of a technology up-gradation fund of USD 80 Mn in the 12th plan for chemicals. Proposal to establish an autonomous USD 100 Mn chemical innovation fund by securing 10% of the total inclusive national innovation fund set up by the National Innovation Council to encourage commercialization efforts for innovations generating inclusive growth.

Other initiatives by the Government Government readiness to

provide incentives for bio-based raw materials to reduce dependence on crude oil, encourage companies to seek “Responsible Care Certification” and facilitate priority loans to those who meet environment norms.

Chemical industry could be granted tax and duty reductions for specific identified products such as import duty reduction on inputs like coal, furnace oil, naphtha, etc., inclusion of a wider range of inputs under CENVAT credit and encouraging companies to set up captive power plants.


Growth Prospects of Atul

Atul Limited has 2 reporting segments, namely, Life Science

Chemicals and Performance and Other Chemicals.

Crop Protection During 2015-16, sales increased by 22% from ` 342 cr to 418 cr. Sales in India decreased by 16% from ` 194 cr to 163 cr; bulk sales in India decreased by 14% from 73 cr to 63 cr whereas brand sales which are currently only in India decreased by 17% from ` 121 cr to ` 100 cr. Sales outside India increased by 72% from ` 148 cr to ` 255 cr and formed 61% of the total. Increase on account of volume was 34%. Sales increased mainly because of good demand for one of the key herbicides. The Company completed 3 projects and undertook 1 project for implementation. The size of world Crop Protection Chemicals industry is estimated at US$ 52 bn and is growing at about 4%. There are about 60 major companies which dominate the world marketplace. The size of world Agriculture industry is estimated at US$ 3.35 tn and is growing at about 3%. The Company will participate in this growth by

1. Building a strong sales and marketing organization and broadening and deepening its presence in other countries, particularly in Africa and South America.

2. Promoting its brand sales. 3. Improving its manufacturing and working capital

efficiencies. 4. Generating and adding capacities. 5. Introducing new products and formulations.

Pharmaceuticals During 2015-16, sales decreased by 1% from 334 cr to 330 cr. Sales in India decreased by 9% from ` 186 cr to 170 cr. Sales outside India increased by 8% from 148 cr to 160 cr and formed 48% of the total. De growth on account of volume was 1%. The Company successfully completed its second USFDA inspection for one of its products; it is in the process of expanding its API plant. Atul Bioscience Ltd (ABL), a 100% subsidiary company, focussed on production of advanced API intermediates, increased its sales by 17% from 47 cr to 55 cr, primarily because of volume; it undertook 1 project for implementation. The size of world Pharmaceutical industry is estimated at US$ 1.75 tn, of which the conventional pharmaceutical segment is US$ 1.2 tn and is growing at about 8%. Of this, the size of world API industry is estimated at US$ 150 bn and is growing at about 7%.

Life Science Chemicals Segment 2015 - 16 2014 - 15 % change

Sales (Cr) 748 676 11%

Share in total sales 31% 27% 4%


Aromatics During 2015-16, sales decreased by 10% from 522 cr to 469 cr. Sales in India decreased by 1% from 140 cr to 139 cr. Sales outside India decreased by 14% from 382 cr to 330 cr and formed 70% of the total. Growth on account of volume was 3%. The Company completed 1 project and undertook 1 project for implementation. World market of p-Cresol (a key product) is estimated at 63,000 mt and is growing at about 2%. Though earlier the product used to be manufactured in the UK and the USA, China and India are now the major suppliers of the product. The size of world Fragrance industry is estimated at US$ 11 bn and is growing at about 4% and the size of world Personal Care industry is estimated at US$ 400 bn of which personal care ingredient segment is US$ 20 bn and is growing at about 4%. Bulk Chemicals and Intermediates During 2015-16, (external) sales decreased by 12% from 100 cr to 88 cr. Sales in India increased by 4% from 55 cr to 57 cr. Sales outside India decreased by 31% from 45 cr to ` 31 cr and formed 35% of the total. De growth on account of volume was 11%. The Company completed 1 project. The size of world Chlor-alkali industry is estimated at US$ 70 bn and is growing at about 6%. World market for Resorcinol (a key product) is estimated at US$ 320 mn and is growing at about 3%. The size of world Tyre industry is estimated at US$ 220 bn and is growing at about 6.5%. Polymers World market for Epoxy Resins and Hardeners is estimated at US$ 6.3 bn and is growing at about 2% and Indian market is estimated at US$ 250 mn and is growing at about 6%. There are about 7 major companies which dominate the world marketplace. World market for Sulphones (a hardener) is estimated at US$ 320 mn and is growing at about 4%. The user industries, Construction, Defence, Electrical and Electronics, Paint and Coatings and Wind Energy are growing well, particularly in India.

Colors During 2015-16, sales decreased by 23% from 515 cr to 398 cr. Sales in India decreased by 10% from 250 cr to 224 cr. Sales outside India decreased by 34% from 265 cr to 174 cr and formed 44% of the total. De growth on account of volume was 18%. The Company completed 4 projects and undertook 2 projects for implementation. Rudolf Atul Chemicals Ltd (RACL), a joint venture company formed in 2011- 12, provides a complete range of textile chemicals in Indian market; increased its sales by 42% from 43 cr to 61 cr, primarily because of volume. The size of world Dyestuff industry is estimated at US$ 6 bn and is growing at about 3.5%. China is the largest manufacturer of dyes followed by India.

Performance and Other Chemicals Segment 2015 - 16 2014 - 15 % change

Sales (Cr) 1659 1834 -10%

Share in total sales 69% 73% -4%


Investment rationale:

Atul is a diversified Indian company meeting the needs of varied industries 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, Sports and Leisure, Textile, Tyre and Wind Energy across the world. It manages complex chemical processes in a responsible way. Crop Protection: Product groups: Herbicides, Insecticides, Fungicides. The size of world Crop Protection Chemicals industry is estimated at US$ 52 bn and is growing at about 4%. There are about 60 major companies which dominate the world marketplace. The size of world Agriculture industry is estimated at US$ 3.35 tn and is growing at about 3%. Pharmacuetical: Product groups: API intermediates, Active Pharmaceutical Ingredients. The size of world Pharmaceutical industry is estimated at US$ 1.75 tn, of which the conventional pharmaceutical segment is US$ 1.2 tn and is growing at about 8%. Of this, the size of world API industry is estimated at US$ 150 bn and is growing at about 7%. There are about 20 major companies which dominate the world marketplace. Aromatics: Product groups: Intermediates, Perfumery. World market of p-Cresol (a key product) is estimated at 63,000 mt and is growing at about 2%. Though earlier the product used to be manufactured in the UK and the USA, China and India are now the major suppliers of the product. The size of world Fragrance industry is estimated at US$ 11 bn and is growing at about 4% and the size of world Personal Care industry is estimated at US$ 400 bn of which personal care ingredient segment is US$ 20 bn and is growing at about 4%. Bulk Chemicals and Intermediates: Product groups: Bulk chemicals, Adhesion promoters. The size of world Chlor-alkali industry is estimated at US$ 70 bn and is growing at about 6%. World market for Resorcinol (a key product) is estimated at US$ 320 mn and is growing at about 3%. The size of world Tyre industry is estimated at US$ 220 bn and is growing at about 6.5%. Colors: Product groups: Textile dyes, Pigments, Paper dyes, Inks, Textile chemicals. The size of world Dyestuff industry is estimated at US$ 6 bn and is growing at about 3.5%. China is the largest manufacturer of dyes followed by India. World market for high performance pigments is estimated at US$ 4.3 bn and is growing at about 2.7%. Polymers: Product groups: Epoxy Resins and Hardeners, Reactive Diluents, Sulphones, Rubber and Polyurethane based Adhesives. World market for Epoxy Resins and Hardeners is estimated at US$ 6.3 bn and is growing at about 2% and Indian market is estimated at US$ 250 mn and is growing at about 6%. There are about 7 major companies which dominate the world marketplace. World market for Sulphones (a hardener) is estimated at US$ 320 mn and is growing at about 4%. The Company will participate in this growth by i) building a strong sales and marketing organisation and broadening and deepening its presence in other countries, particularly in Africa and South America, ii) promoting its brand sales, iii) improving its manufacturing and working capital efficiencies, iv) generating and adding capacities and v) introducing new products and formulations.

We recommend BUY in Atul @ 2075 with the Target of 2500


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DYANMIC/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? No

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DYANMIC/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have been engaged in market making activity for the subject company? No

General Disclaimer: - This Research Report (hereinafter called “Report”) is meant solely for use by the recipient and is not for circulation. This Report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through Dynamic nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security (ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients of this Report should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. This Report has been prepared on the basis of publicly available information, internally developed data and other sources believed by Dynamic to be reliable. Dynamic or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information / opinions / views. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of Dynamic shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including loss profits arising in any way whatsoever from the information / opinions / views contained in this Report. The price and value of the investments referred to in this Report and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance. Dynamic levels do not provide tax advice to its clients, and all investors are strongly advised to consult with their tax advisers regarding taxation aspects of any potential investment. Opinions expressed are our current opinions as of the date appearing on this Research only. We do not undertake to advise you as to any change of our views expressed in this Report. User should keep this risk in mind and not hold dynamic levels, its employees and associates responsible for any losses, damages of any type whatsoever. Dynamic and its associates or employees may; (a) from time to time, have long or short positions in, and buy or sell the investments in/ security of company (ies) mentioned herein and it may not be construed as potential conflict of interest with respect to any recommendation and related information and opinions. Without limiting any of the foregoing, in no event shall Dynamic and its associates or employees or any third party involved in, or related to computing or compiling the information have any liability for any damages of any kind. We and our affiliates/associates, officers, directors, and employees, Research Analyst(including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company (ies) discussed herein or act as advisor to such company (ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of Research Report. Dynamic may have proprietary long/short position in the above mentioned scrip(s) and therefore may be considered as interested. The views provided herein are general in nature and does not consider risk appetite or investment objective of particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Dynamic. Dynamic Equities Pvt. Ltd. are also engaged in Proprietary Trading apart from Client Business.

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dynamic levels atul ltd 4 source: company, businesses of atul atul aromatics with a portfolio of 29...

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