Neutral Tata Chemicals; target of Rs 1210: Motilal Oswal

Motilal Oswal's research report on Tata Chemicals

Tata Chemicals (TTCH)’s 1QFY23 consolidated EBITDA beat our estimate, with a strong operating performance across geographies backed by robust growth in Soda Ash realization. Globally, demand for Soda Ash has been buoyant, with a favorable demand-supply scenario. All plants across the geographies have been running at optimum utilization levels. Factoring in the strong operating performance in 1QFY23, we raise our FY23/FY24 EBITDA estimates by 23%/11%, respectively.

Outlook

We maintain our Neutral rating with an SoTP-based TP of INR1,210.