Rs 15/Share Dividend Declared; Buy The TATA Group Chemical Stock To Be Eligible?

As of Tuesday's closing session, Tata Chemicals, a large-cap company in the chemical industry, has a market worth of Rs 27,317.52 Cr. Basic chemistry products and specialty products are the two verticals through which the company operates. It is home to the primary saltworks in Asia, the third-largest producer of soda ash globally, and the sixth-largest producer of sodium bicarbonate. With a capacity of around 4,138 KT for soda ash and 236 KT for sodium bicarbonate, it is a major participant in the global chemical industry. The company has declared financial results for the quarter and year ended 31st March 2024 after which the stock is in focus. On Tuesday, the shares of Tata Chemicals closed at Rs 1072.30 apiece level on the BSE. The stock marked a 52-week-high of Rs 1,349.70 on (07/03/2024) and a 52-week-low of Rs 933.00 on (29/02/2024).

Tata Chemicals Dividend

"The Board has recommended a dividend of Rs 15 per share i.e. 150 % for the financial year 2023-24. The dividend, if approved by the members at the ensuing 85th Annual General Meeting (AGM) of the Company, will be paid (subject to deduction of tax at source) within five days of the AGM," said Tata Chemicals in a regulatory filing.

Tata Chemicals Q4 Results

Compared to the same quarter last year, when consolidated revenue from operations was Rs 4,407 Cr, it was Rs 3,475 Cr in the quarter under review. Compared to the same quarter last year, when consolidated profit after tax was Rs 694 Cr, it was Rs 145 Cr in Q4FY24. The consolidated gross debt was Rs 5,563 Cr as against Rs 733 Cr in the same quarter of the previous year, while the net debt was Rs 4,163 Cr as against Rs 265 Cr from the same quarter previous year.

As of Q4FY24, standalone revenue from operations was Rs 1,090 Cr, down from Rs 1,302 Cr in the same period the previous year whereas standalone profit after tax was Rs 217 Cr as opposed to Rs 213 Cr in Q4FY23.

On a consolidated basis, for the full year, the income from operations reached Rs 15,421 Cr as compared to Rs 16,789 Cr in FY2023. Compared to Rs 3,822 Cr in FY2023, EBITDA was Rs 2,847 Cr in FY2024. PAT (before exceptional items and Non-Controlling Interest ('NCI')) was Rs 1,310 Cr in FY24 which was Rs 2,452 Cr in FY2023.

On a standalone basis, the net income was Rs 4,384 Cr in FY24 as compared to Rs 4,930 Cr in FY2023 whereas net profit stood at Rs 794 Cr (before exceptional items) as against Rs 1,027 Cr in FY2023.

The proposal to raise up to Rs 2,000 crores through the private placement of Non-Convertible Debentures (NCDs) has also been approved by the Board.

Tata Chemicals Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "TATACHEM, currently trading at 1075 levels, has exhibited a sideways movement within the range of 1025-1150 over the past month. However, a concerning development on the daily chart is the formation of a bearish head and shoulders pattern, indicating potential downside risk for the stock. Should the stock breach the lower boundary of the mentioned range, it may encounter further selling pressure, potentially leading to a decline towards the next support level at 935. In light of this technical pattern, investors who entered positions at lower levels are advised to consider booking profits to safeguard against potential losses."

"Conversely, if TATACHEM breaks above the upper limit of the mentioned range, it could signal a bullish reversal, potentially leading to a strong upward movement in the stock. Therefore, fresh investment should be approached cautiously, with consideration given to entering positions only if the stock successfully surpasses the resistance level at 1150. Given the technical signals present, investors should closely monitor price action and adjust their strategies accordingly to navigate TATACHEM's current market conditions effectively," the analyst further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.