Extremely positive on Tata Chemicals: Hemang Jani, Sharekhan

Hemang Jani, Senior Vice President, Sharekhan (Fundamental Check) in a chat with ET Now talks about Tata Chemicals and Aditya Birla Nuvo.

Could you just run us through the rationale for your Tata Chemicals and Aditya Birla Nuvo, the other two stocks that you have?

Tata Chemicals has three divisions, fertilisers, chemicals and agri inputs. Both fertiliser and agri inputs are doing exceptionally well and they were extremely encouraged by the way the government has gone ahead with the reforms both on the urea policy and the nutrient based policy and we think there is a case for some kind of a re-rating of the fertiliser stocks, particularly the better quality ones like Tata Chemicals and few others and we feel that these stocks, which are available at about 10-12 kind of a PE, there is a case for a re-rating there as well, so we are extremely positive on Tata Chemicals from that perspective.

As far as Aditya Birla Nuvo is concerned, the company has 7-8 different businesses, some of them are traditional old businesses and some are new businesses like telecom, financial services, IT and IT-enabled, etc. We feel that most of these divisions are doing very well and the company on a sum of parts is available at very attractive levels. We feel that there is going to be a case for a 20-25% kind of an upside even from short-to-medium term perspective.