Buy Tata Chemicals; target of Rs 355: A C Choksi

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Buy Tata Chemicals; target of Rs 355: A C Choksi

A C Choksi is bullish on Tata Chemicals and has recommended buy rating on the stock with a target of Rs 355 in its October 24, 2011 research report.

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A C Choksi is bullish on Tata Chemicals and has recommended buy rating on the stock with a target of Rs 355 in its October 24, 2011 research report.

"Tata Chemicals Limited is a global company with interests in businesses that focus on LIFE: Living, Industry and Farm Essentials. The story of the company is about harnessing the fruits of science for goals that go beyond business. Tata Chemicals is the world's second largest producer of soda ash with manufacturing facilities in. The company's industry essentials product range provides key ingredients to some of the world's largest manufacturers of glass, detergents and other industrial products."

"Tata Chemicals reported 17% increase in its consolidated revenues for the quarter ended June 2011 to Rs 2953.95 crore compared to corresponding previous year period while net profit of the company was down 7% to Rs 199.86 crore mainly due to impact of Rs 23 crore in accordance with the circular issued by DoF. For the quarter ended June 2011, the company has not recognized subsidy income of Rs 31 crore on opening stock of raw materials for phoshatic and potassic fertilisers, in accordance with the recent office memorandum dated July 11, 2011, issued by the Department of Fertilisers (DoF). Tata Chemicals remains the market leader with 63.2% market share in the National Branded segment. Strong demand for branded salt across the nation - Branded Salt volumes growth at around 4%."

"TTCH is one of the largest players in the fertilizer space and is the second largest producer of Soda Ash in the world. Its presence in the US, UK and Africa makes it a globaly recognised entity. We believe the NBS policy and the proposed de-regulation of Urea is a big boon for the company. The fertilizer sector in India is expected to grow at 18% till 2015. Based on the positive outlook of the sector and TTCH's dominant position we recommend a fundamental "BUY" call on the stock with an investment horizon of 2 years. The stock is trading at 18.5x its FY11 earnings," says A C Choksi research report.

Non-Institutions holding more than 90% in Indian cos

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