The shares of Tata Chemicals surged 5.71% on Friday’s early trades to reach a fresh all-time high of ₹1182.40 apiece on the Bombay Stock Exchange (BSE). The company recently reported strong results for the June quarter.
Tata Chemicals posted overall revenue at ₹ 3995 crores in Q1FY23, up 34% year-on-year, led by strong performance across all geographies.EBITDA grew 68.8% YoY to Rs. 1,015cr and EBITDA margin improved 521bps YoY to 25.4%, driven by operating leverage, further, its PAT jumped 87.2% YoY to ₹ 641 crores.
“We continue our long-term focus on excellence by leveraging digitalization and sustainability. In addition to operational excellence, we continue to focus on executing growth CAPEX,” R. Mukundan, Managing Director & CEO, Tata Chemicals Ltd., said while commenting about the company’s earnings.
Geojit reiterated its buy rating on the shares of Tata Chemicals with a target price of ₹ 1,340 in its research report dated August 12, 2022. The shares are currently trading at ₹ 1135.75 apiece, which translates to an upside of 17.98%.
The brokerage said that Tata Chemicals is the world’s third largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. Further, it has a strong focus on consumer, Agri and speciality businesses. The demand for soda ash and bicarb is likely to continue in the short to medium term, along with supply tightness. It expects that revised pricing, increasing volumes and strong demand across products are likely to boost its topline and support margins.
Tata Chemicals is an Indian company that has an interest in chemicals, crop protection and speciality chemical products. The company has successfully evolved over the years starting from industrial salt and soda ash to a wide range of science-based products.
Written by Simran Bafna
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