Atul ltd. is a chemical conglomerate who has released its 3rd quarter results on 20 January 2017. The major revenue comes from the segment performance & other chemicals. This segment has shown a jump in revenue of 8.12% in YoY and reported a sales of Rs.498.17 crore whereas, in life science chemical the company has showed a jump in revenue of 8% from Rs.195.82 crore to Rs.211.55 crore in YoY.
Earning Per Share (EPS) is a major indicator of a company’s profitability and health.
Due to seasonal effect company provides better result in 2 quarters i.e. in June and September and the cooling periods are December and March. Thus we have to look at YoY performance to compare the results of the company.
We can see that when compared Year on Year i.e. December 2016 & December 2015 the EPS has reduced by 3.84% which is a flat reduction.
Annual revenues tells us about the long-term health of the company
We can see that in the past 4 years the annual revenue has been increasing with the exception of March 2016. Although the percentage change has been reducing. In March 2016 we see that the revenue has decreased by 4.11% which is not a major change.
Shareholding pattern is very essential; a company whose major shares are owned by its promoters and institutions is a healthy sign.
In ATUL LTD,
Institutional holding is also very significant; more the percentage of institutions holding the chances of stock manipulation become less, by single or group of investors
Some of the big Institutional holdings in Atul ltd:
It is important to choose the leaders over laggards; this is decided by seeing the stock performance of the company in a considerable period.
Atul has a support of 1880 which is its 2 month low. Upside target of this stock is 2492 (3 month high). This stock is currently trading at 2272 one can enter in a buy position of 2250.
So, we can conclude that the overall performance of the company has been flat any major rise in revenue or EPS in next quarter will only give a huge direction to Atul share price in the long run.