Tata Chemicals' share price fell on June 14 morning as the stock traded ex-divided. At 10.45 am, the stock was quoting at Rs 979 on the National Stock Exchange, down 2 percent from the previous close.
The ex-dividend date is usually the working day prior to the record date. Investors who held the Tata Chemical stock before June 14 are eligible for the payout.
The Tata Group company declared a final dividend of Rs 17.5 per share, aggregating to 175 percent of the face value, for FY23, which is 40 percent higher than the FY22 dividend.
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Tata Chemicals has also slashed soda ash prices, a negative trigger for the stock.
On June 13, popular detergent maker Nirma revised its soda ash prices downwards by Rs 2,000 a tonne. Following this, Tata Chemicals reportedly cut its price by Rs 2,300, pointing to a pricing war.
Centrum Broking said these companies are passing on the benefit of a drop in coal prices but the move will their operating profit or EBITDA.
Tata Chemicals had in April cut soda ash prices by 3-4 percent after the fall in Chinese prices amid an unexpected supply glut from the Inner Mongolia region.
The speciality chemicals company on May 3 reported a 62 percent year-on-year growth in consolidated profit at Rs 709 crore for the March quarter of FY23, driven by healthy operating performance and strong growth in topline.
Consolidated revenue from operations at Rs 4,407 crore grew 26.6 percent from the year-ago period, with the basic-chemistry products segment growing 32 percent and the speciality products reporting a 4.4 percent rise.
As per Bloomberg data, the stock has seven "buy" calls, two "hold" and no "sell" calls. The 12-month consensus target price on the stock is Rs 1,116, representing a 14 percent upside from current levels.
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