Buy This Tata Group Stock For A Target Price Of Rs 1340: Geojit

Geojit has given buy call to the stock of Tata Chemicals for a target price of Rs 1340 with a potential gain of 19.96%. The brokerage has given 1 year target price for the stock to reach the specified target of Rs 1340.

1. Tata Chemicals Stock Outlook

The current market price of the stock is Rs 1117.25 apiece with a 52-week high of Rs 1159 and 52-week low of Rs 773 apiece. According to Geojit, investors can buy the stock of Tata Chemicals for a target price of Rs 1340 apiece and has given 1 year time period when the stock will reach its prescribed target price.

The stock will give a potential return of 19% if investors buy it at its current market price.

2. Tata Chemicals Returns In The Last 5 Years

The stock has given a return of 30% in just 1 month, 14% in 3 months, 30% in 1 year, 101% in 3 years, and 88% in 5 years. On August 24, 2017 the stock was priced Rs 583 apiece and now it has surged to Rs 111.25

3. Tata Chemicals Recorded Strong Performance Across Business And Geographies

According to Geojit, Tata Chemicals Limited (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. Consolidated revenue rose 34.2% YoY and 14.8% QoQ to Rs. 3,995cr in Q1FY23, led by strong performance across businesses and geographies.

4. Tata Chemicals EBITDA And PAT

EBITDA grew 68.8% YoY to Rs. 1,015cr and EBITDA margin improved 521bps YoY to 25.4%, driven by operating leverage. PAT jumped 87.2% YoY to Rs. 641cr. Demand for soda ash and bicarb is likely to continue in the short to medium term, along with supply tightness.

Revised pricing, increasing volumes and strong demand across products is expected to boost the topline and support margins.

5. Tata Chemicals Valuation

According to Geojit, "hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 1,340 based on 20x FY24E adj. EPS."

6. Tata Chemicals Market Capitalization

The market capitalization of the company is Rs 28,462.65 crore.

7. About Tata Chemicals

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.

Tata Chemicals currently is the world's third largest producer of soda ash with manufacturing facilities in India, United Kingdom, Kenya and the United States. It is also the sixth largest producer of sodium bicarbonate. The Specialty Chemistry product range covers four verticals.

 

Disclaimer

The stock has been picked from the brokerage report of Geojit Financial Services. 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.