Buy Tata Chemicals, target price Rs 1,155: ICICI Direct

ICICI Direct has buy call on Tata Chemicals with a target price of Rs 1155. The current market price of Tata Chemicals is Rs 1033.75. Time period given by analyst is year when Tata Chemicals price can reach defined target.

Tata Chemicals, incorporated in the year 1939, is a Mid Cap company (having a market cap of Rs 26316.32 Crore) operating in Chemicals sector.

Tata Chemicals key Products/Revenue Segments include Salt, Others, Refined Sodium Bicarbonate and Specialty Chemicals for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 3586.91 Crore, up 12.77% from last quarter; Total Income of Rs 3180.66 Crore and up 32.81% from last year same quarter. Company has reported net profit after tax of Rs 421.41 Crore in latest quarter.

Investment Rationale
The stock appreciated at 55% CAGR in last three years. The brokerage revised its rating on the stock from HOLD to BUY due to better soda ash pricing environment.

Key triggers for future price performance:

• Improvement in the soda ash pricing environment bodes well for future growth outlook

• Revival in export demand for North America unit to sustain group performance

• Higher share of speciality business to command better valuations for the overall group