See 25% upside in Tata Chemicals: Rajen Shah

Rajen Shah, CIO of Angel Broking told CNBC-TV18, "Tata Chemicals is undervalued. If you look at earning per share (EPS) and price-earning multiple (PE) you will feel that the stock is over priced trading at about 25 times the earnings. But, we need to understand that this company is actually going through lot of restructuring especially on the European front. The operations in UK, US and Kenya are getting restructured and the positive impact of this will be realized next year when we are expecting the EPS to jump to about 20-22, so its about 13-14 times.”

He further added, “This is the second largest manufacture of soda ash in the world with interest in fertilisers and agri inputs and both these businesses have been doing well. You are getting the second largest manufacture of soda ash in the world with interest in fertiliser, agri inputs at a market cap of hardly Rs 7000-7500 crore, so that itself makes it a very strong buy and as it is at about 13-14 times FY15 earnings, I don't think Tata Chemicals is an expensive stock. I do see in other 25 percent kind of upside in this calendar year itself.”