Buy Tata Chemicals; target 500: Vivek Mahajan

Vivek Mahajan, Head-Research, Aditya Birla Money in an interview with ET Now talks about fertiliser stocks.

Would you still initiate a fresh long or fresh buys into any of the fertiliser stocks?

One stock we like in that space is Tata Chemicals, which may not be a pure fertiliser play. They have got chemicals and nutrient business, both seems to be doing very well at this point of time.

Of course last quarter results were not up to the expectation because of some pressure on the chemical business but subsequently the soda ash prices have gone up significantly. They also have a play on crop protection chemicals through rallies and they are going into a lot of futuristic businesses. The stock is quoting at something like 11-12 times expected FY12 earnings. We believe this stock could offer an upside potential of 22-25%, may be a target of Rs 500 could be very much on on the counter.