Tata Chemicals Ltd - Results in line; upgrade to Buy - Emkay

Reco: BUY
CMP: Rs 309
Target Price: Rs 400

- Q1FY13 results were in line with est. Co reported consol revenues of Rs 30.7bn, 4% yoy while consol APAT stood at Rs 1.6bn, -24% yoy (after adj of Rs 615mn of FX loss).

- Strong chemical margin in domestic business & strong profitability in US operations supported bottomline despite disruption in domestic fertilizers & IMACID.

- Though global demand for soda ash remained stable in Q1, however management shared cautious outlook due to slowdown in China.

- Q1FY13 operations were affected by multiple factors however business has normalized from current quarter. Upgrade to BUY (previous Accu).

Source : Equity Bulls

Keywords