Monday, September 2, 2019

Buy Tata Chemicals on declines




Company Background :

Tata Chemicals Limited is a holding company. The Company is a manufacturer of soda ash and sodium bicarbonate for diverse industries, such as glass, detergents, silicates, textiles, food, pharmaceuticals, animal feed, mining and chemical processing. The Company operates through four segments: Inorganic Chemicals, which includes soda ash, salt, sodium bicarbonate, marine chemicals, caustic soda and cement; Fertilisers, which includes fertilizers and other traded products; Other Agri-inputs, including Rallis India Limited's operations, and Others, which includes pulses, spices, water purifier and nutritional solutions. 

The Company classifies its products under approximately three categories, including living essentials, industry essentials and farm essentials. The Company has a global presence with subsidiaries in the United Kingdom, Kenya and the United States.

Stock Market Performance :

52 week high 782 
52 week low 543
CMP 02 Sept 2019 - 584

The company has a Book Value of 473, with EPS of 36 resulting in a PE of 16
Use the current declines as an opportunity, investors can buy for long term and add to their portfolio.

Recommendation :

Buy and add to your long term portfolio.  In the short term 620 will be a good resistance point.  The scrip may correct in the short term, and Rs.540 is the support level in case of a correction.  

Investment Rationale :

Sound management and excellent track record.  Robust growth in volumes / margins. Healthy product pipeline and future expansion plans.

Raghav
Equity Research Analyst

Smart Investor 
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