Neutral Tata Chemical; target of Rs 1110: Motilal Oswal

Motilal Oswal's research report on Tata Chemical

TTCH’s consolidate EBITDA grew 47%, primarily led by higher realization per MT in the US (up 38% YoY/25% QoQ) and the UK (up 54% YoY/down 2% QoQ). Consequently, EBITDA/MT improved in the US by 52% YoY to USD91 and in the UK by 6.9x YoY to GBP144, aided by cost moderation and high realization.

Outlook

Factoring in a strong 4QFY23 performance in the US and the UK region, we raise our FY24/FY25 EBITDA estimates by 14%/11%. We reiterate our Neutral rating with an SoTP-based TP of INR1,110.

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