Buy Tata Chemicals; target of Rs 368: Motilal Oswal

Motilal Oswal 's research report on Tata Chemicals

Tata Chemicals (TTCH)’s operating performance was muted across geographies (barring Europe) and in Rallis. This was primarily led by North America (NA), wherein EBITDA declined 81% YoY on lower volume offtake. The Soda Ash segment’s performance was impacted by a reduction in demand from the end user industry (largely for flat and container glass).

Outlook

Factoring the miss in our estimates and a weak end user industry demand scenario, we cut our EBITDA estimates by 14%/6% for FY21/FY22 and arrive at an SOTP-based TP of INR368. Maintain Buy.

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