Multibagger Stock: Shares of Tata Chemicals are one of the multibagger stocks that the Indian stock market has given over the years. However, the stock has remained under selling pressure for the past one year. However, those who bought the stock during the sell-off started in 2020 after the outbreak of the first Covid-19 wave. From April 2020 till now, this chemical stock has increased by approx. 220 to Each level of 1,100, in about two and a half years’ time, moved closer to a 400 percent appreciation. However, Geojit is still bullish on this Tata Group stock and has recently upgraded its target 1,340 in the long term.
on its evaluation Multibagger Chemical StockGeojit’s report said, “TCL continues to report solid performance despite a challenging environment. We remain optimistic about the continued demand for soda ash across geographies, which will boost the topline.” The reduction of soda ash will further improve realizations through increased pricing. Management expects the positive momentum to continue in the near future and aims to leverage digitization for further growth.”
On the company’s margins, the Geojit report says, “EBITDA grew 68.8 per cent year-on-year to Rs 1,015 crore, on account of better operating leverage and price revision, which offset input cost inflation. EBITDA margins grew 521 bps year-on-year to 25.4 million.” As a result, the PAT grew by 87.2 per cent year-on-year to Rs 641 crore. The UK business became profitable.”
On other fundamentals that could fuel the share price rally of Tata Chemicals, the brokerage report said, “TCL’s consolidated revenue grew 34.2 per cent year-on-year and 14.8 per cent QoQ to Rs 3,995 crore in Q1FY23, driven by soda ash ( Detergents and Glass) players), bicarb and salt. Revenue from basic chemical products grew 40.8 per cent to Rs 3,060 crore, on account of better realizations and higher volumes. Revenue from specialty products Gross 17.1 per cent to Rs 934 crore. Strong growth in crop care. Geographically, India’s revenue grew 48 per cent year-on-year to Rs 1,225 crore on strong demand for specialty products. US revenue grew 34 per cent year-on-year on strong export prices 1,119 crore and strong demand in the export market.”
On its suggestion to situational investors regarding this Multibagger Chemicals stock, Geojit’s report states, “We reiterate our BUY rating on the stock using a target multiplier of 20x P/E at FY24E adj of 1,340 With a revised target price of Rs. EPS.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.