Positve on Tata Chemicals: ICICI Direct

Pankaj Pandey, Head of Research, ICICI Direct

What would you do with the fertiliser pack after they have run up now?

In terms of fertiliser pack, Tata Chemicals is what we like among all of them. Not necessarily because of this deregulation perspective but from the perspective that the soda ash prices have recovered a lot from the loss what we have seen. Tata Chemicals has got capacities based on natural soda ash. The cost of production is quite lower resulting into stable margins. Salt business is more of a cash cow for this particular stock and we are quite positive on this particular stock not necessarily because of the fertiliser as a part but as an entire pack because it has got decent business in the salt, urea and the chemicals as well.