Tata Salt Maker's Stock Buzzing For Fresh Buying; Technical Analysis Reveal Potential Of 19% Upside Ahead

Amidst record-high stocks, there is one share backed by Tata Group that has witnessed consolidation in recent times. This will be Tata Chemicals' share price which has tumbled marginally year-to-date. Even its yearly upside is nearly 12% which is a slower surge compared to other Tata stocks. Owing to these bulls-and-bears pulls, Tata Chemicals shares are buzzing to hit new levels ahead. There is a potential for fresh buying as much as the stock may jump up to 19% in the near term.

On BSE, Tata Chemicals' share price ended at Rs 1,101.85 apiece, down by 0.89% with a market cap of Rs 28,070.32.

In its technical analysis report, SMC Global Securities on Tata Chemicals said, "The stock can be seen trading in a rising channel with the formation of higher bottom pattern on weekly charts. Last week a fresh breakout was observed above the symmetrical triangle pattern on broader charts as stock marked its 52-week high of 1141 as well."

It further added, "The breakout was observed with sudden spike in average volumes and positive divergences on secondary oscillators as well. We expect the momentum is likely to continue towards more upside as price volume action, suggests a fresh round of buying into the stock."

Finally, SMC's note said, "One can buy the stock in the range of 1110-1115 levels for the upside target of 1300-1310 levels with SL below 1000 levels."

Tata Chemicals will announce its Q3 results for FY24 anytime soon. In Q2FY24, the income from operations stood at Rs 3,998 Cr, as compared to Rs 4,239 Cr in the corresponding quarter of last year (Q2FY23). EBITDA on a consolidated basis, stood at Rs 819 Cr for the quarter, as compared to Rs 920 Cr in Q2FY23. PAT on a consolidated basis, stood at Rs 495 Cr, for the quarter, as compared to Rs 685 Cr in Q2FY23. PAT includes an exceptional item of Rs 102 Cr.

As of September 30, 2023, the company's consolidated Gross Debt dropped to Rs 6,048 Cr, as compared to Rs 6,296 Cr as of 31 March 2023. Also, as of 30 September 2023, cash & cash equivalents stood at Rs 1,701 Cr, as
compared to Rs 2,398 Cr as of 31 March 2023.

A part of the $ 150 billion Tata Group, Tata Chemicals Limited, is a leading supplier of choice to the Glass, Detergent, Industrial and Chemical sectors. The company has a strong position in the crop protection business through its subsidiary company, Rallis India. Tata Chemicals has world-class R&D facilities in Pune and Bangalore.

Tata Chemicals has successfully evolved over the years, starting from industrial salt and soda ash to a range of science-based products that improve the quality of life of our customers. Its legacy in consumer products includes India's most popular salt brand Tata Salt and India's first national dal brand Tata Sampann.

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