Diwali Dhamaka - Tata Chemicals Ltd

Buy - TATACHEM

CMP (NSE) 15:59, 18 May

980.35 8.550.88%

Download

PDF

Sector

Chemicals

Add to

WatchList

Add to

Portfolio

Reco. Price

895

Period

12-Months

Target Price

1,150

upside

%

Stop Loss

0

Last updated on

03 Nov, 2021

Tata Chemicals Ltd. (TCL) operates principally in industrial, agricultural and consumer chemicals. The company is among the world's top manufacturers of soda ash with annual production capacity in excess of 4m tons spread across four continents.

More than 70% of TCL's soda ash capacity is based on low-cost natural sources, giving the company a sustainable competitive advantage relative to synthetic soda ash manufacturers. In addition, the company has a presence in India's agricultural inputs industry by virtue of its majority ownership stake in Rallis India, which manufactures agrochemicals and seeds.

The outlook for soda ash has markedly improved in recent months, with sharp price increases announced in India as well as the US. This should drive margin improvement in coming quarters. soda ash itself is consumed in significant quantities to manufacture lithium-ion batteries, and this will be an important demand driver in coming years.

Index vs Stock Relative Chart

Please refer to Research Disclaimer for additional recommendation parameter, analyst disclaimer and other disclosures.