KR Choksey's research report on Tatva Chintan Pharma Chem
For Q4FY22, Tatva Chintan Pharma Chem reported revenue of INR 985.3Mn (-9.3% yoy / -5.9% qoq) as against INR 1086.7Mn in Q4FY21 amid subdued demand in Structure Directing Agents (SDAs) led by continued semiconductor shortage during the quarter. EBITDA reported at INR 219.5Mn (-10.3% yoy / -7.8% qoq) as against INR 244.7Mn in Q4FY21. However, EBITDA margin sustained at 22.3% (-24bps yoy / -47bps qoq). PAT reported at INR 175Mn (-17.1% yoy / 23.2% qoq) as against INR 211.2Mn in Q4FY21. PAT margin reported at 17.8% (-166bps yoy / 402bps qoq). EPS stood at INR 7.90 as against INR 10.51 in Q4FY21 and INR 10.29 in Q3FY22. The final dividend of INR 2/share is recommended by board of directors which is subject to the approval of shareholders.
Currently, it is trading at TTM PE of 56.0x at CMP of INR 2,498. We assign PE multiple of 41.0x to FY24E EPS of INR 68.06 to revise the target price at INR 2,791/share (Previous TP: INR 2,902) and retain ACCUMULATE rating on the stock with an upside of 11.7% at CMP.
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