Buy Tata Chemicals, target price Rs 1340: Geojit

Geojit has buy call on Tata Chemicals with a target price of Rs 1340. The current market price of Tata Chemicals is Rs 1111.25. Time period given by analyst is one year when Tata Chemicals Ltd. price can reach defined target.

Tata Chemicals Ltd., incorporated in the year 1939, is a Mid Cap company (having a market cap of Rs 28204.07 Crore) operating in Chemicals sector.

Tata Chemicals Ltd. key Products/Revenue Segments include Salt, Others, Refined Sodium Bicarbonate and Specialty Chemicals for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 4041.00 Crore, up 12.66 % from last quarter Total Income of Rs 3586.91 Crore and up 33.30 % from last year same quarter Total Income of Rs 3031.53 Crore. Company reported net profit after tax of Rs 608.00 Crore in latest quarter.

Investment Rationale
Demand for soda ash and bicarb is likely to continue in the short to medium term, along with supply tightness. Revised pricing, increasing volumes and strong demand across products is expected to boost the topline and support margins.

Hence, it reiterates BUY rating on the stock with a revised target price of Rs. 1,340 based on 20x FY24E adj. EPS.

Promoter/FII Holdings
Promoters held 37.98 per cent stake in the company as of 30-Jun-2022, while FIIs owned 14.99 per cent, DIIs 19.14 per cent.