Buy This Tata Group Stock For Double Digit Return In 90 Days: ICICI Direct

Leading brokerage firm ICICI Direct has given buy call to the Tata Group stock Tata Chemicals Ltd for a target price of Rs 1340 apiece. The stock appreciated at 55% CAGR in last three years.

Tata Chemicals Ltd Stock Outlook

The current market price of Tata Chemicals Ltd is Rs 1169 apiece on BSE with a gain of 0.87% in early noon trade. According to ICICI Direct, if you buy the stock at its current market price, it has the potential to surge to Rs 1340 apiece and the target period to achieve the target price of Rs 1340 is 3 months.

Tata Chemicals Hits New 52-Week High Today

The stock has climbed a new 52-week high today. The stock opened at Rs 1174 apiece, touched the high of Rs 1194 apiece and low of Rs 1163 apiece. The stock's 52-week high is quoted at Rs 1194 apiece and 52-week low is quoted at Rs 773 apiece, respectively.

Tata Chemicals Ltd Market Capitalization

The company has a market capitalization of Rs 29,755.53 crore at the time of writing the report.

Tata Chemicals Ltd Return In Last 5 Years

The stock has given a return of 83% in the last 5 years, 96% in last 3 years, and 40% in last 1 year.

Tata Chemicals Ltd Strengths And Weakness

The company has several strengths. It is a company with high TTM EPS growth. The stock has registered strong annual EPS growth. It displayed robus QoQ EPS Growth in recent results. When it comes to its weakness, it falls in the list of companies with growing costs YoY for long term projects.

Tata Chemicals Ltd Q1FY23 Results

Tata Chemicals Ltd reported strong numbers across the board largely led by robust realization growth across all geographies in Basic Chemical Segment. It reported revenue growth of 34.2% YoY to ₹ 3995 crore, led by good growth in the basic chemical segment (+41%YoY) and in speciality products (+17% YoY). Gross margins improved 190 bps YoY to ~80.1% while EBITDA margin expanded 520 bps YoY to 25.4% which is highest till date. EBITDA was up 69% YoY to ₹ 1015 crore and adjusted PAT stood at ₹ 544.7 crore v/s ₹ 288 crore in Q1FY2 2.

Tata Chemicals Ltd Key Triggers For Future Price Performance

Improvement in the soda ash pricing environment bodes well for future growth outlook. There is a revival in export demand for North America unit to sustain group performance. Higher share of speciality business expected to command better valuations for the overall group.

About Tata Chemicals Ltd

Commencing operations in 1944, Tata Chemicals has come a long way to become one of the top five players in the global soda ash market. Under basic chemical, TCL offers soda ash, sodium bicarbonate, cement, salt, marine chemicals and crushed refined soda. Speciality chemical consists of solution towards agro chemical through Rallis and other specialty solutions such as nutritional products and HDS. Basic chemical forms 75% of overall revenue while the rest comes from speciality products.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.