Sell Tatva Chintan Pharma Chem; target of Rs 860: Deven Choksey

Deven Choksey's research report on Tatva Chintan Pharma Chem

Consolidated revenue increased by 10.8% YoY (+8.3% QoQ) to INR 1,169 Mn., stood below our estimates (-4.3%), led by lower traction across the PTC (Phase Transfer Catalyst) and the PASC (Pharmaceutical and Agrochemical intermediates) segment, partially offset by stronger momentum in the SDA (Structure Directing Agents) segment. The double-digit revenue growth was driven by broad based growth across all the segments.

Outlook

We have rolled forward our valuation to Jun’27 estimates. We value Tatva Chintan at 40.0x Jun’27 EPS, implying a target price of INR 860. Tatva Chintan is currently trading at 65.8x/34.2x of our FY26E/FY27E EPS estimates. We downgrade our rating from “HOLD” to “SELL” as we believe all positive factors are fully priced in.