Tata Chemicals Limited is the largest chemical company in India dealing in chemicals, crop protection, and speciality chemical products. It is in India, Europe, North America, and Africa.Tata Chemicals Limited is also the world’s second-largest producer of soda ash and a supplier of essential components to several enormously successful global producers of glass, industrial goods, and detergent.
Tata Chemicals has a market capitalisation of Rs. 29,066.39 crore. About 75% of the revenue comes from basic chemicals, and the remaining 25% is from speciality goods.At the time of writing, the Tata chemical share price is Rs.1141.55.Let us look at the reasons why Tata Chemicals tops the F&O gainer’s list:
1.During the recent Q1FY23 result, the company has shown tremendous growth. The figures are as follows:
- Reported a 34.2% YoY increase in revenue, driven primarily by solid growth in the basic chemical segment (+41% YoY) and specialty goods (+17% YoY).
- While the EBITDA margin increased by 520 bps YoY to 25.4%, the highest level to date, gross margins increased by 190 bps YoY to 80.1%.
- EBITDA rose 69% year over year to Rs.1,015 crore.
- Adjusted PAT was Rs. 544.7 crore as opposed to Rs. 288 crore in Q1FY22.
- Besides the above figures, the stock has appreciated by 55% in the last three years, which looks promising investment for investors.
3.From the prospect, improving the soda ash pricing situation gives a positive outlook.
4.Export demand for the North American unit will increase to support group performance.
5.A greater proportion of specialised businesses will result in higher valuations for the entire group.
Tata Chemicals Limited is a promising share, considering the solid fundamentals and the prospects the company looks forward to.Additionally, there has been a high trailing 12-month growth in EPS and strong EPS growth annually.The relative strength index (RSI) shows price strength in the future.The Tata Chemicals share price has performed exceptionally well and has given a stellar return as the share rose by 2.7 times in the last six months.
Considering the above factors, Tata chemicals should be on top of the investor’s F&O gainers list.Even from the diversification point of view, it is a good share and can be included in the portfolio.
Conclusion
Tata is a renowned name and garners confidence from investors. The company was incorporated in 1938 and has made its presence felt worldwide. Fertilisers, inorganic chemicals, other agro-inputs (such as the operations of Ralli’s India Limited), and others, which includes spices, pulses, and nutritional solution, are the company’s four business segments. The many items in this assortment are divided into farm basics, living essentials, and industry needs.
The business leans toward environmentally responsible expansion in all regions to meet the community’s needs worldwide.Ultimately, it can be concluded that Tata Chemicals share price should be a part of one’s investment kitty and be considered for longer.