Get App
Last Updated : May 20, 2020 04:25 PM IST | Source:

Hold Tata Chemicals; target of Rs 300: ICICI Direct

ICICI Direct recommended hold rating on Tata Chemicals with a target price of Rs 300 in its research report dated May 19, 2020.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Tata Chemicals

Tata Chemicals reported a fall in revenue of 7% YoY to Rs 2378 crore, largely dragged by around Rs 100 crore sales postponement along with a fall in realisations at Magadi, Africa. Revenues from India in the basic chemical segment were down 12.6% YoY to Rs 718 crore while the same for North America, Europe and Magadi remained at Rs 800 crore (-8% YoY), Rs 365 crore (-4.2% YoY) & Rs 115 crore (-18.4% YoY), respectively. Unabsorbed fixed overheads such as employee along with partly fixed other cost dragged OPM, which contracted 60 bps YoY to 16.8% resulting in EBITDA de-growth of 10% YoY to Rs 400 crore. In terms of geography wise OPM break-up in basic chemical segment, OPM for India contracted 1170 bps YoY to 22.5% while Magadi remained at 9.6% against 22% in Q4FY19. On the other hand, NA (25.5% vs. 23.6%) and Europe (14% vs. 11.2%) registered expansion in OPM on a yearly basis. Adjusting exceptional gain to the tune of Rs 98 crore in Q4FY19, the bottomline declined 31% YoY to Rs 198 crore.


We lower our volume and realisation assumption for the current fiscal and roll over our valuations to FY22E. We value the company on an SOTP basis and arrive at a target price of Rs 300 including investment portfolio value. We have a HOLD recommendation on the stock.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Get best insights into Options Trading. Join the webinar by Mr. Vishal B Malkan on May 28 only on Moneycontrol. Register Now!

First Published on May 20, 2020 04:20 pm
Follow us on