Tata Chemicals Has Risen 200% in 12 Months and Can Still Go Higher

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Tata Chemicals Has Risen 200% in 12 Months and Can Still Go Higher

By Aditya Raghunath

Investing.com -- Shares of Tata Chemicals Ltd (NS: TTCH ) closed August 14, 2020 at Rs 295. They are currently trading at Rs 878.95, 197% higher. An amount of Rs 10,000 invested in Tata Chemicals at the close of day on August 14, 2020 would be worth Rs 29,794 today.

The company reported revenue growth of 26.8% YoY to Rs 2977.2 crore, led by higher growth in the basic chemical segment across four units. PAT (profit after tax) was at Rs 288 crore against Rs 13.3 crore in Q1FY21. The growth was largely due to strong operational performance and higher share from JV.

An August 7 report from ICICI Direct says, “The stock appreciated at 79% CAGR (compounded annual growth rate) in last two years. We retain HOLD rating on the back of better growth outlook of base business due to revival in the flat glass demand.” It has revised its target price to Rs 925 per share from its earlier number of Rs 750 per share.

It said the main drivers for future price performance are:

  1. Improvement in the soda ash pricing environment bodes well for future growth outlook.
  2. Revival in export demand for North America unit to sustain group performance.
  3. Higher share of specialty business to command better valuations for the overall group.

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  • Saikat Ghosh @Saikat Ghosh
    can you provide details
    Like 1

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