This Tata Stock Showing Upside Potential, Geojit Reiterate "Buy" For Upto 21% Return

Gejit, a leading broking house in India, has come up with an investment idea in one of Tata Group's leading midcap stocks. The name of the stock is Tata Chemicals Ltd. (TCL). The brokerage has assigned a "Buy" on the stock of TCL with a target price of Rs 1,197 apiece for 21% potential upside. The stock's market capitalisation of Rs 25,287.11 crore. Check below to know key takeaways about the stock:

Stock Performance & Overview

The share price of TCL on NSE last traded at Rs 993.25 apiece, declined 1.74%. It recorded its 52 week high on 11 October 2022 at Rs 1,214.90 apiece and 52 week low on 1 July 2022 at Rs 773.35 apiece, respectively.

The stock has gained 0.42% in the past 1 week. However, it has fallen 1.91% in the past 1 month and 3.92% in the past 3 months, respectively. It gained 11.49% in the past 1 year. The stock has given 233.03% multibagger return in the past 3 years. It has given 44.6% positive return in the past 5 years.

Soda ash drives growth; outlook positive

According to Geojit, In Q3FY23, its consolidated revenue was up 32.0% YoY to Rs. 4,148cr (down 2.1% QoQ) led by better soda ash realisations across all geographies and stable demand. EBITDA was up 69.1% YoY to Rs. 922cr and EBITDA margin 480bps YoY to 22.2% aided by better cost management. PAT increased 25.7% YoY to Rs. 391cr.

Buy for a target price of Rs 1,197 apiece

The Geojit said, "The company posted decent earnings on account of stable demand, better realisations and cost management. The management expects soda ash demand to rise, with supply tightening in the upcoming quarters leading to better realisations. Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 1,197 based on 14x FY25E adjusted EPS."

About The Company

Tata Chemicals Ltd (TCL) is the world's third largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. It also has a strong focus on consumer, agri and specialty businesses.

Disclaimer

The stock has been picked from the brokerage report of Geojit. 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 consult with certified experts before making any investment decision.